Increasing Real Estate Opportunities in Bangalore
Bangalore City – Improved connectivity, and social infrastructure with educational institutions and healthcare facilities, is instrumental in driving more people towards suburbs around the city. The spurt in the number of project launches over the years and the consistent capital value appreciation amply illustrates this trend. For investors in real estate, suburbs offer immense scope for capital appreciation.
The number of new residential project launches during the fourth quarter ranges from numerous apartments in Hosur road, villa for sale in Sarjapur road and apartments in Kudlu junction. It is estimated to be home to over 10,000 individual dollar millionaires.
The price appreciation is the primary factor that drives investors to this segment. A project launched in Marathahalli at Rs 3,900 per sqft two years ago is now quoted at Rs 5,500 per sqft. Similarly, capital values in another project launched on Doddaballapur Road at Rs 1,700 per sqft almost doubled in a span of four years and now quotes at Rs 3,000 per sqft.
As land prices are relatively lower in the suburbs, developers can acquire land instead of opting for joint venture developments, and they can offer apartments at competitive prices, say industry sources. As Bangalore’s suburbs have to expand, the first priority would be along the main roads like Tumkur Road, Mysore Road, Old Madras Road, Hosur Road, Kanakapura Road, Bannerghatta Road and Devanahalli. The connectivity to suburbs is good along these roads which is one reason for the surge in migration of people towards suburbs.
According to top builders in Bangalore, investors in suburbs can expect at least 20 percent price appreciation every year and it may vary depending on the location with the upside going even up to 30 percent. In the last two years, the appreciation has been estimated at 40 percent in Whitefield alone for select projects. With the State government giving a thrust to infrastructure development in the vicinity, the north corridor will pick up in the coming months, say realtors.
With the Central Business District and Secondary Business District areas becoming unaffordable for some buyers, suburbs is the only option for mid-range segment”, says one of the top builders in Bangalore, MPInfra. “The commercial development has pushed the residential development in suburbs and the city’s residential markets will exhibit continued and steady demand during this year”, he adds.
Suburbs that are closer to IT hubs are witnessing prolific residential development and offer ample scope for investors to plunge into the market. A slew of commercial projects are in the pipeline on Bellary Road, say industry sources. Residential property developers in the midrange segment are focusing on such areas for housing development.