Bangalore Real Estate Experiences Further Price Increases
Despite the rise of Gurgaon, Noida, and other suburban areas, Bangalore has maintained Its status as a leading real estate hub. Numerous contributing variables have fueled considerable expansion in Bangalore's property values, establishing the city as a prominent hotspot for real estate activities. Land and property prices in Bangalore have surged dramatically in recent years.
The influx of migrants, driven by opportunities from across India attracts developers to make bigger investments in Bangalore's real estate sector. Several elements are cited as primary drivers behind this growth in Bangalore's property value.
Factors Influencing Bangalore Real Estate Prices include:
- IT Boom: The information technology sector's rapid growth.
- BPO Centers: The expansion of Business Process Outsourcing.
- International Airports: Enhanced global connectivity through aerial transportation.
- Infrastructure: Commendable infrastructure featuring expressways and ring roads.
- Bangalore Metro: The increasingly useful metro system.
- Industrial Growth: The expansion of the industrial sector.
- Government Planning Shortfalls: The Government's inability to effectively plan and execute housing projects.
- Individual Investors: The growing influence of individual investors capitalizing on market trends.
The boom in the IT sector has attracted individuals from various regions across India. People have migrated even from other major cities like Mumbai, Delhi, Kolkata, Hyderabad and Pune to Bangalore in search of employment opportunities. Enhanced salaries, frequently dispensed in dollars, enable residents to pursue westernized lifestyles. In tandem with the IT sector, the industrial sector has shown substantial growth, further accelerating migration. The city has become a nucleus for the BPO industry, which presents numerous employment prospects. However, the city has struggled to provide adequate housing for its growing population. Government shortcomings in planning and housing projects in IT and industrial areas have exacerbated the growth of property prices. Individuals have strategically capitalized on the surge in Bangalore's property prices. Many investors acquire multiple properties, intending to sell them in the future for profit. The international airports, provide easier access to the outer world, which has bolstered the City's appeal. Its well-developed infrastructure, featuring expressways and ring roads, facilitates seamless transportation. In addition, the city’s efficient metro connectivity further enhances Bangalore’s attractiveness.
Rate of Price Hike
Despite citywide price increases, numerous areas in Bangalore have maintained stable prices. The rate of price increases varies across regions. Some developers have substantially increased prices, while others have maintained stability. Approximately 41% of projects have exhibited consistent pricing. Displayed below are the price increases across different areas and associated growth rates:
- Sarjapur Road – 8%
- Bannerghatta Road – 7%
- Kanakpura Road – 4%
- Electronic City – 0%
- Yelahanka – 0%
"Just wait till the price reaches at an affordable level is the only thing a good buyer can do."