No one who sees the bustling cosmopolitan structure of the Garden City is going to believe that it was once a Pensioner’s Haven! Considered as the Asia’s Silicon Valley the major transforming point for the city has been the emergence of the IT/ITES Sector. According to online statistics published at the beginning of this year,
- Growth rate of IT/ITES in the city is the highest showing double digits
- Current population of 9.6 M is predicted to grow to 14,000,000 in 2021
- Presently, 2840 IT & ITES companies are operating here
- Out of the total 100+ are Fortune500 companies
Additionally, 90% of the people presently residing in the city belong to the working class. This shouldn’t come as a big surprise because Bangalore incorporates 31+ industrial hubs housing PSUs, private IT/ITES, Textiles, Biotechnology, Aviation, and Engineering companies. Not to neglect the education sector, this high-tech city boasts of 620 colleges and over 5,400 schools.
This has led to an equalizing of educational growth quality with constantly growing living standards of the residents here. It is home to some of the renowned institutes; such as IISC, IIITB, IIMB, ISI, NID, and NLSUI. Also, Bangalore has the distinction of being the largest outsourcing hub in the whole world as well as an End User Core Market.
The commercial and social infrastructure here has helped get to achieve the tag of, WORLD CITY having ample scope for Retail, Hospitality, and Entertainment options. All this coupled with the pleasant weather all around the year makes Bangalore one of the best places in India to settle down. No wonder, the city has been witnessing a 13% stable annual average appreciation price rate for residential sectors during the past four years.
Along with the high developments in the core areas of the city, the suburban areas are also seeing a spurt in Bangalore real estate market growth in recent years. So, what is driving this growth and development? Bangalore has a key advantage over other metros in South India. Expansion in this city is possible in all the FOUR directions! Infrastructure developments have remained the lifeline. It has led to increase in connectivity between different regions and has opened up the inaccessible areas spurring growth.
Some crucial infrastructural projects undertaken in the recent past include,
- Elevated Expressway
- Bangalore International Exhibition Center (BIEC)
- Bangalore-Mysore Infrastructure Corridor (BMIC)
- Peripheral Ring Road
- Metro Rail Development Phases – I & II
How these major developments have affected the Bangalore’s Property Market
Bangalore real estate market can be divided into the Northern and Southern areas. Most of the big industries are concentrated in the northern regions of the city especially close to Hebbal and Bellary Road. Major infrastructural development including an international airport and other ongoing projects has made this possible. South Bangalore on the other hand is quite developed having an established infrastructure in place. No wonder, investments in Bangalore real estate market here show a steady growth over the years.
North promises quick real estate value increase and south signifies a chance to stay close to existing amenities as hospitals and schools. Appreciation rates in North Bangalore are approximately 20% to 30%. Yehalanka – Dodaballapur Rd is presently witnessing high demands in apartment and villas related to gated communities. In comparison appreciation rates in the southern parts of the city is presently 15%.
Here is the current property prices in relation to the most prominent areas in Bangalore based upon a leading online statistics.
- Jayanagar: Constant appreciations are visible in this region since 2013. Current prices per square feet are over INR 8000.
- Hosur Road: The recent quarter indicates property prices per square feet to be over INR 4,300.
- Banashankari: Steady appreciation rates are visible in relation to the property prices in this area. Current, per square feet property prices hovers above INR 7,155 a distinct rise from per square feet prices of INR 6233 in 2013.
- Hebbal: Here the price curve shows a constant upward growth with per square feet average prices being INR 6,100 during the last quarter of 2014. Investing in real estate here seems like a good idea presently.
- Devanahalli: This is a lucrative Bangalore real estate market area due to its proximity to the newly developed International Airport in the city. Naturally, per square feet prices have risen to approximately INR 4,138 in 2014 from INR 3,985 per square feet price during the same period in 2013.
- Marathahalli: Per square feet prices in this suburban region of Bangalore for recent 2013 October-December period was INR 4,350. Appreciation rates seem to have grown distinctly in 2014.
Growth and development in suburbs of NORTH Bangalore
The best evidence of infrastructural developments driving growth in Bangalore real estate market can be seen in the northern suburbs of the city. Hennur Road, Thanisandra Road, Yelahanka, and Doddaballapur Road are some of the upcoming major residential pockets. These regions have been witnessing demands from mid-range and affordable segments. Proximity to international airport and to the various proposed or upcoming infrastructural initiatives and IT Park developments have led to such demand escalations.
Growth and development in suburbs of SOUTH-EAST Bangalore
Kadugodi and Budhigere Cross in the Eastern region also show a spurt in growth. This is because of its proximity to Whitefield IT hub and good connectivity to International airport in North Bangalore via Outer Ring Road. When it comes to Southern parts of the city, rapid developments are visible in such regions as Kanakapura Road that comes after the Nice Ring Road, Anekal, and Attibele Road. These are the up and coming residential areas popular due to their nearness to the Electronic City. Homebuyers especially love the areas surrounding Kanakapura Road because of the ongoing Metro Rail project, which will further enhance the connectivity of this area with the rest of the city.
As can be seen through a detailed study of property development scene in Bangalore, the areas surrounding the IT Corridor Belt dominates. Land availability with connectivity to key hubs seems the major factor driving growth of these new real estate pockets.