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.

Appreciation

The 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 trends

Bangalore 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.

Photo: Bangalore skyline (7121517855) by Saad Faruque from Bangalore, India, licensed under CC BY-SA 2.0, via Wikimedia Commons.