Increased commercial activity, several infra-upgrades and improving transparency in 2016 kept the real estate market in Bangalore much more vibrant and resilient than other cities across the country. In fact, the ‘Silicon Valley of India’ fared much better than its northern counterparts, which can be clearly gauged by the unsold inventory across major cities.
Needless to mention, the IT/ITeS sector ensures strong macroeconomic dynamics with most home buyers considering Bangalore a perfect place to settle and retire. And the burgeoning start-up culture in recent times has also set the office space ticking in the city. In fact, the year 2016 reaffirmed Bangalore’s pivotal position in office sector demand accounting for highest percentage of office leasing volume in the country. This demand has kept the momentum going for the residential demand as well.
On the supply front, out of total 1,944 units launched in Q1 2017 in Bangalore, nearly 68 per cent were skewed towards North Bangalore, followed by South and West with 22 and 10 per cent supply respectively. In this backdrop, we present you the top three micro-markets that saw decent supply in the first quarter.
Yelahanka New Town
Proximity to the International Airport is one of the major factors that has helped Yelahanka climb the realty growth ladder. Situated in North Bangalore, the micro-market boasts of sound Infrastructure with good number of multi-speciality clinics and hospitals, reputed schools and colleges, amongst others. Further, the Aerospace SEZ around the airport has added to the realty growth in the region.
As per our research, out of the total 1,944 units launched in Bangalore in Q1 2017, nearly 25 per cent supply was in Yelahanka New Town. To be more precise, about 480 units entered here in 1, 2, and 3BHK configurations. Priced at an average of Rs 3,672 per sq.ft, this new launched supply is expected to be ready for possession by 2019.
Further, the area has a lot of room for capital appreciation as property prices are currently affordable as compared to most of the CBD areas. Moreover, property values are relatively affordable here.
On the concerns front, depleting ground water level and lack of frequent public transport system are the two major challenges that plague the area.
Spread out between Bellary Road, Thanisandra Main Road and the Outer Ring Road (ORR), Rachenahalli is another emerging destination in the northern part of the city. The presence of Manyata Tech Park in the vicinity has worked well in favour of this micro-market. Additionally, excellent connectivity to the ORR makes it a great residential option for professional working in the IT/ITeS along the stretch.
As per our research, out of the total 1,944 units launched in Bangalore in Q1 2017, nearly 384 units were in Rachenahalli in studio, 1 and 2BHK configurations. The new launched supply is priced at an average of Rs 4,699 per sq.ft. and is expected to be ready for possession by 2020.
Robust connectivity to the IT/ITeS hubs, presence of social and physical infrastructure coupled with relatively lower property values makes Rachenahalli a value for money deal. However, traffic snarls during peak hours and potholed roads are two major issues faced by this micro-market.
Bound by Mysore Road and Magadi Road, Vijayanagar has clocked third position on our list. Being an old neighbourhood in the city, it boasts of several eminent educational institutions including SIT College of Engineering, P.E.S. Institute of Technology, M. S. Ramaiah Institute of Technology, the Bangalore University and the National Law School of India University. Vijayanagar also enjoys great accessibility with Majestic Bus Stop which is just 7km away from here.
As per our research, out of the total units launched in Bangalore in Q1 2017, about 226 units were skewed in Vijayanagar. The new launched supply is priced at an average of Rs 6,ooo per sq.ft. and is expected to be ready for possession by 2019. The price, clearly, explains the old-world charm that Vijayanagar boast of!