Bangalore, August 04, 2014 – The real estate in India is not always on the peak and there are times when the investors and buyers face a tough time. Some of the markets in India continue to show a positive picture in the real estate market. The following article covers one such city of India that has always been investor friendly. Here are 5 realty trends trending in Bangalore that make the city a perfect option for real estate investments.
One of the fastest growing markets, real estate in India has come a long way to reach that level. The market has been working pretty well for the domestic as well as foreign investors. In the past decade, the real estate in India has reached a dynamic and organized level from being unorganized. Government policies have supported this sector and provided better infrastructures that have given a better standard of living.
In India, tier 1 cities like NCR, Mumbai, Bangalore, Chennai and Pune has witnessed huge developments when it comes to real estate. Talking about Bangalore, the city is the IT hub of India that attracts a lot of working class people.
The increasing number of corporates in the city creates demand for commercial as well as residential real estate and makes the city as one of the best places for realty investments. Going further, let us understand the five realty trends in Bangalore that makes it an investment hub.
1: Growth in IT/ITES Industry leading to a number of Jobs
The growth in the IT/ITES industry led to increasing number of jobs which in turn leads to a lot of people migrating into the city, especially the working class. If we talk numbers, then Bangalore has nearly 0.95 million people working there in about 2480 IT/ITES companies. The city creates about one lakh jobs annually. This multiplier effect has had a great effect on the real estate market.
The working population with a median age of 28 years is educated and multi-cultural and different demands. The rising income levels, education and global exposure have raised the living standard of the city.
2: Improving Infrastructure Promotes Development
The government initiative of improving infrastructures rapidly supports the real estate developments. The government of Karnataka is working towards making many corridors that support real estate developments. Some of the corridors that are already under construction are:
- Bangalore – Devanahalli corridor
- Bangalore – Doddaballapur corridor
- Bangalore – Nelemangala – Tumkur corridor
- KR Puram – Hoskote Corridor
- Bangalore – Mysore Corridor
Bangalore is experiencing positive flux allover with evident development across both public and private sectors, especially in the road transport. The improvement in road network through ORR (Outer Ring Road) has changed the dynamics of the real estate market of Bangalore.
Other projects like the Monorail and high speed rail link are expected to ease travel and reduce travelling time also have a part to play in the realty market.
3: Increase in Capital Value
4: Bangalore is one of the favored real estate markets for Private Equity (PE) Funds
Bangalore is currently the most active residential market and hence is one of the favored real estate PE funds. This results in the participation of PE funds in the asset class. This does not stick to only residential class. Even the commercial market of Bangalore witnessed large investments by PE funds in the past one and a half year.
Increase in capital values and strong economic outlook propel a healthy growth rate in the Bangalore realty.
5: Bangalore has performed better than other metro cities
The real estate market of Bangalore has performed better than other metros like Delhi, Mumbai and Chennai and this momentum is expected to grow at least for the coming year. Bangalore market has primarily been an end user driven market. 75% of the market today consists of end users. This is one reason that Bangalore has huge sales of ready to move in apartments unlike other metros where investors look forward in investing in projects that are in the construction phases.
Final Words
The garden city or the silicon city as it is popularly known as, Bangalore gained prominence as a growth corridor in India on account of rapid development in the city. Other than the IT/ITES sector playing major role in the development of the city other sectors such as biotechnology, automobile, textiles and aviation strengthen city’s economy.
The city’s infrastructural developments are being constantly upgraded to match the pace of population growth.
