There is a reason American IT companies are in awe of the Silicon Valley of India, Bangalore: The growth and development in this city is staggering. The IT lobby and media in the Western world have researched and written so much about Bangalore, that a new term has evolved: Bangalored, which basically means losing a job to outsourcing in India, and more specifically, Bangalore.
Here, we present before you 5 interesting and fascinating facts about the real estate industry in India’s top IT and ITeS city, which may surprise you:
- In a recent real estate market study conducted by PropEquity, a firm which specializes in real estate data and analytics, it has been revealed that Bangalore is the top real estate market in India as of April, 2015. In this ranking, they have beaten Mumbai, New Delhi-NCR and even Hyderabad, which has gained quite a solid reputation lately. In the same ranking conducted in 2009, Bangalore was ranked #6th. This proves the fact that real estate in Bangalore is right now at an all time high.
- During the first quarter of 2015, that is, between January and March, 2015, total of 13,400 new real estate units were launched in Bangalore, which is 19% more than the Q1 of 2014, when total of 11,170 new units were launched in the city. 19% year on year growth is something which is incredible, even by standards of Singapore and Hong Kong, which are normally considered World’s top real estate markets!
- Total of 8310 units were sold during the same period (January – March, 2015) in Bangalore, compared to 7210 units in the first quarter of 2014. This, 15% more sales of real estate properties (both residential and commercial) were witnessed in the last 12 months.
- If we talk about appreciation value, then the maximum increase was witnessed in Hosur Road, where real estate prices increased by 4.3%, compared to last year. Whitefield closely followed by appreciation of 3.7%, followed by Kanakpura Road, where 3.4% increase was witnessed.
- Whitefield is now considered as one of the most expensive areas in Bangalore, as the real estate prices touched Rs 8100 per square feet. On the other hand, areas like Sarjapur and Hosur Road are the top preference for residential properties, as the cost per square feet is hovering around Rs 5000 in these areas. At the same time, due to metro projects, areas like JP Nagar & Kanakpura Road are experiencing major appreciation in values.
- As the city is expanding at a break neck speed, key junction areas such as Yeshwantpur and Rajajinagar are witnessing major high end residential projects, which can be termed as ‘luxurious’ by current standards. Average unit will cost you between Rs 75 lakh to Rs 1.5 crore, and the average square feet price can negotiated between Rs 5500 – Rs 7500.
- But Sadashivnagar beats them all. At an all time high price of Rs 30,000 per square feet, a residential unit can cost you between Rs 9 – 12 crore, as average of 3000 square feet is the build-up area in this part of the city. Several super high end, luxurious residential projects are coming up in Sadashivnagar.
Juggy Marwaha who is the MD- South, JLL India, has presented an interesting analysis of the real estate market of Bangalore, from an investor’s point of view. In case you are looking for real estate investment advice, then Juggy’s article on MoneyControl will certainly help you.