Bangalore has been the fastest-growing city of India since the past few decades. IT has been the major growth driver and is responsible for aggressive real estate development in the city. Being the IT hub of India, Bangalore has a multi-cultural population with good social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure. Currently, the most promising residential micro-markets are Outer Ring Road (ORR), Sarjapur Road, Whitefield and North Bangalore.
Bangalore is the third-largest hub for High Net worth Individuals (HNIs). It is estimated to be home to over 10,000 individual dollar millionaires. Bangalore has a large base of expatriates who live and work in the city. The residents are well travelled, cultured and have sophisticated tastes.
There has been increased demand for high-end residential apartments in the city, particularly in the Central Business District (CBD), Secondary Business District (SBD), Whitefield, North Bangalore and Outer Ring Road sub-markets. We expect consumer demand for high-end residential projects in these sub-markets to be steady over the short term.
Bangalore is one of the most promising markets for villa projects in India. Villa and row house developments are most active in the North Bangalore, ORR, Sarjapur Road and Whitefield micro-markets. High-end residential property buyers in Bangalore are very sensitive in terms of amenities, product quality and unit sizes.
This segment is mainly driven by individuals working in the IT and ITES industry. The main driving factors for this segment are social infrastructure, proximity to workplaces, good physical infrastructure and access to medical and educational facilities.Because of these reasons, micro-markets such as Whitefield, the ORR IT corridor, Electronic City and few areas in North Bangalore have witnessed a steady demand from the mid-income segment.
- How has the Bengaluru residential market grown over the year? At what rate? And how immigration of technology companies has given a boost to real estate in Bengaluru?
Bengaluru is one of the fastest growing cities in India at a stunning rate of 26% . The population of the city has increased to an estimated 11.98 million in 2017 from 9.5 million six years back (as per the 2011 census data). The IT sector is a major contributor for migration into Bengaluru from other cities, giving a boost to real estate in the city.Residential sales in Bengaluru have increased by almost 9 to 10% over the year.
According to the latest census, 90% of the immigrants to Bengaluru are from the working class when compared with Delhi which has 50% working class immigrants and Mumbai with 70%. Hence it’s not surprising that Bengaluru recorded 12.85 million square feet of new construction in office space. Absorption of corporate space translates directly into higher residential and rental demand, which shares capital growth in the city.
- How do you see the performance of the real estate market in Bengaluru when real estate in most of the world is in slump?
There are more first-time home buyers (who purchase apartments) in Bengaluru than in other Indian cities, where investors are in higher number. First-time home buyers purchase their homes irrespective of the market scenario. This makes Bengaluru real estate less volatile than other parts of India. In other cities with more buyers purchasing homes from an investment point of view, the market conditions are crucial. They take into serious consideration the market scenario before investing their money in property.
- Which are your projects that have gone under sale and people have started occupying them?
Kumari Residency, Kumari Nivas, Kumari Srinilayam, Kumari Brundavan, Kumari Lotus, Kumari Ferns, Kumari Elite, Kumari Tusti have all been completed.
Inputs by T. Ashok Naidu, Director, Kumari Builders and Developers