Excellent Localities at Which to Own a Luxury Property in Bangalore

Luxury Property in Bangalore is gradually becoming more skewed towards developing more luxury units than was the case a few years ago. While a few years ago there was a stronger focus among Top builders in Bangalore to create budget homes for mid to senior level IT workers, today nearly thirty percent of upcoming projects in Bangalore are counted among the luxury segment. The market for luxury homes in Bangalore is driven by demand from expatriates, NRI’s, IT millionaires, senior executives working in IT, and NRI’s. Many high net worth individuals prefer living in Bangalore as opposed to any other city.

The Upmarket Locales of Bangalore

While Bangalore was well known as a retirement town and has many well-developed neighborhoods which served this purpose, today not only is the number of luxury projects in Bangalore increasing but so are the localities which are considered to fall in the luxury segment. Regions of the city such as Cunningham Road, Palace Road, Richmond Road, Fraser Town, Indira Nagar, and Sankey Road have always been considered luxury hotspots in the city where residents usually lived in large bungalows. Today however many homes in such localities tend to be large apartments occupied by NRI’s. Furthermore, there is also a larger presence of premium gated communities in regions of Bangalore such as Bannerghatta Road, Whitefield, Koramangala, JP Nagar, and Sarjapur Road.  Notably, the government has a keen focus to create better infrastructure in regions such as Hebbal, Kanakpura Road, Hosur Road, Jinagar, and Yeshwantpur.

Prices for Luxury Apartments in Bangalore

Luxury apartments in Bangalore can cost up to 6 crores in many regions of the city and often start from a price as low as 75 lakhs. Most flats in Bangalore at such price points are spacious 3 bedroom flats. Notably, unlike in virtually any other real estate market, in Bangalore one can buy a 4 BHK villa for 80 lakhs in the locality of Electronic City. If you want to buy a house in Bangalore in an upmarket locality it may cost you nearly 40,000 rupees per square foot in regions such as Richmond Road. Similar 3 BHK apartments in Bangalore located in Sankey Road are priced for sale at a rate of 30,000 rupees per square foot. Buyers with a more modest appetite have the option to own apartments in Bangalore in upcoming regions such as Hebbel where the price per square foot is between 4,000 to 7,000 rupees per square foot. Other regions of the city such as Koramangala, Indiranagar, and Cunningham Road carry valuations of 10,000 to 12,000 rupees per square foot. Hence a buyer who wishes to own luxury apartments in Bangalore may be able to do so for approximately one crore as there are diverse localities with differing price rates to suit many pockets.

Conclusion

Demand from NRI’s, Expats, and similarly high-flying segments is leading to a new dimension in Bangalore’s real estate market. Many such individuals are used to living in larger homes which also have every amenity imaginable. As such there are today a larger number of luxury apartments in Bangalore under development than there were at any other time in the past.

Excellent News This Quarter for Commercial Property in Bangalore

There was a slightly greater increase in demand for commercial New projects in Bangalore this quarter over the same quarter last year. This occurred in spite of the fact there was not an increase in demand for property from large multinationals in Bangalore. Much of the increase in demand for commercial property in Bangalore took place in Whitefield, which is the IT hub of Bangalore. The absorption for real estate increased to 2.7 million square feet from the 2.3 million square recorded in the same quarter last year.  During the first quarter of last year, the gross absorption of commercial space stood also stood at 2.3 million square feet. The properties under development which will be delivered within the next 4 to 6 quarters and net absorption of property together make up gross absorption. The moderate increase in the demand for commercial property may also lead to a moderate increase in the demand for commercial projects in Bangalore, particularly in regions close to Whitefield. 

Whitefield the IT Hub in Bangalore

The region of Whitefield witnessed the greatest increase in the demand for commercial office space this previous quarter. Whitefield had more vacancies for office space when compared to the Outer Ring Road. This is not necessarily good news for Whitefield as the reason for more demand for commercial space in Whitefield had to do more with available space at the Outer Ring Road which has a vacancy of only 2 percent due to its far smoother connectivity with regions which have more real estate in Bangalore.  

Companies Which Acquired the Most Commercial Space

According to experts, commercial property in Bangalore continues to remain constraint however there is a large supply of space in regions such as Whitefield and Electronic City. TCS acquired the largest amount of commercial space during the previous quarter in Whitefield, an area measuring .55 million square feet. The second largest acquirer of space was Broad Ridge Financial which acquired close to .15 million square feet of commercial space. Home improvement company Lowe’s acquired .12 million square feet of commercial space in Embassy Tech Park. An increase in the demand for commercial space is usually a good sign for the creation of new affordable and luxury flats in Bangalore.

What to Expect in the Future

Experts believe that though the news was positive was commercial property in Bangalore it is unlikely to match the growth in the previous two years. In 2014 and 2015 the demand for commercial property in Bangalore stood at 11.3 and 12.2 million square feet largely due to the fact that companies such as Flipkart, Ola, and Amazon made huge commitments to their businesses.

Unlike the glamor of the previous quarter which saw the likes of Apple and Diageo acquire commercial property in Bangalore, this year the only glamorous company to acquire commercial space has been Lowe’s. The Outer Ring Road continues to be the prime locality for commercial real estate in Bangalore due to its close proximity to apartments in Bangalore from where employees can commute smoothly to and from their office. Overall there has been a drop of .2 million square feet in commercial space acquired this year over the same time the previous year.