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Real Estate Developments in Bangalore
The property trends that govern the Bangalore's real estate market
include government initiatives for development of the city as
a way of promoting demand for real estate property through private
builders / developers and corporates. Residential townships have
developed at various locations as naturally. Bangalore is experiencing an all time high in the real estate valuation in both the domestic and international markets. It can be a brilliant choice to invest in Bangalore real estate. Projects sanctioned by the Bangalore Development Authority boast of unique advantages of high-profile properties, available within the city fringes at better re-sale values and above all, better price appreciation. The development of residential properties in Bangalore shows a great deal of planning and high-quality architecture, engineering and refined urbanism in good measure. These have the backing of good infrastructure along with pleasant greenery. There are entertainment and fitness centers like Gyms, indoor/outdoor sports, international quality shopping complexes. Reputed real estate developers in Bangalore implement quality- housing projects by adapting latest technologies. With the new government taking a positive approach towards infrastructure development, Bangalore is likely to attract more corporates and developers for housing and commercial projects. The new concept in living in the garden city is that of customized villas with beautiful gardens spruced up with amenities like a clubhouse, swimming pool, and supermarket. Rows of villas are placed in an attractive arrangement with a lawn in front and the sides and a backyard free. The villas are placed in an attractive arrangement. On retail property the average yield returns is around 10-12%, 10-11.25% on commercial investments and 5-7% per annum on the residential properties. AppreciationThe demand for retail, commercial, office and residential real estate in Bangalore reaching new and dizzying heights, the prices for property for sale and rent is increasing rapidly. The recent developments have shown appreciation in price to almost 70 per cent in residential apartments, while land values have gone up by over 100 per cent in some cases. Bangalore now commands a relatively larger proportion of demand for office space in the metros like it did in 2004. Property prices for both residential and commercial spaces has at times crossed 100 per cent and the rise moves on at a frenzied pace. Even the outskirts like places beyond Devanahalli, Whitefield, Sarjapur, Electronic City, and even farther which are a good 25-50 kilometers away from the city have achieved a remarkable appreciation. Rentals are steep already excluding, electricity, and water bills and the advance ranges between Rs 50,000 to Rs 1 lakh for a two bedroom apartment. 2005 liberalization of India's FDI policy gave a fillip to the levels of FDI reaching the real estate sector in India.Against the backdrop of vibrant industrial growth, the boom is driven not just by investments in the IT industry, high salaries drawn by its employees investments by NRIs also added to the boom genuine demand from end users. Bangalore's Residential Property Market: From 2005 onwards, apartments in the most desirable districts in south eastern, eastern and northern Bangalore have achieved property price gains in the region of 20%. Villas in Bangalore have enjoyed up to 30% capital appreciation. The increased rental and sale prices for well located property in Bangalore have spelt a good investment opportunity for NRIs scouting for good deals in Indian real estate market. Bangalore's Commercial Property Market: Well located commercial space is so coveted that an increase in the prices, also in the Central Business District(CBD) in Bangalore has increased at a sharp and sustained rate. Since the city is the undisputed leader in IT and is the best location for IT and IT related companies in India, the demand for space is rising in proportion with the number of businesses being established in India which are at an all time high. There are other business sectors that have an equally strong demand for commercial properties in Bangalore. There is a strong demand for retail space as well in Bangalore even as construction of several shopping malls gets underway. Consumer demand is very intense as the population of Bangalore steadily increases. Bangalore is undoubtedly a huge successful property market, worth exploring. Just like the fact that urbanization will accompany economic progress, it is certain that housing values will go up manifold. Investing in homes as well as commercial property seems very rewarding. NRI Real Estate trendsBangalore which is currently the most dynamic real estate market has over a dozen new projects leading builders in the city that have designs on Non Resident Indians. There are numerous instances of people who lived overseas for many years and have settled in Bangalore for the last five or six years. Increasingly, the drift is towards buyers with discerning tastes who care for open spaces. Lifestyle Habitat which is a top of the line premium residential project has takers from overseas Indians from Singapore, Nigeria, Djakarta and the Middle East. Luxury apartments or independent villas with facilities have a certain charm that makes them relate with their lifestyle. Top end segment, which includes bungalows and independent villas grab attention from NRIs. There are a host of investing and financial management companies to advise on real estate investments and national banks are not far behind in coming up with innovative schemes on housing loans. Indeed, the top end segment includes bungalows and independent villas constituting a visible demand from the NRIs. Concorde Silicon Valley, a project of the Concorde Group is situated in the heart of electronic city. The highlight of the project was independent villas with price ranging from ranging from $45,500 to $160,000. People were completely bought into the concept. Swimming pool, gymnasium, shopping malls, medical facilities, and tennis courts, and what have you are among the amenities. The new developments are concentrated in North Bangalore or close to the proposed Hi-Tech City. High-end residential developments, after saturating in the Central Business District have branched out to different parts of the city. |
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