Bangalore, hailed as the most positive city in the real estate sector nationwide, witnessed an impressive 19 percent hike in this quarter.
Drivers of Bangalore’s Real Estate Market
East and North Bangalore predominantly powered the city’s property markets, with high demand stemming from IT professionals. Areas in East Bangalore, such as Whitefield, Electronics City, and ITPL, offer a vast array of residential housing options for sale and rental. North Bangalore is developing rapidly, particularly since the establishment of the international airport.
Factors Influencing Housing Preferences
Close proximity to workplaces emerged as the primary factor influencing housing preferences in the Garden City. Additionally, infrastructure upgrades, safety and security measures, and gated communities significantly enhanced the city’s appeal. The presence of educational institutions, hospitals, and shopping centers further bolstered Bangalore’s attractiveness.
Market Dynamics
Infrastructure enhancements played a pivotal role in the value appreciation of IT-driven areas in North Bangalore. Accessibility to IT SEZs and other commercial spaces remains in high demand.
Supply and demand conditions were consistent across the city, with a preferred price range of Rs 40-60 lakhs for properties. In South and East Bangalore, there was a notable preference for properties in the Rs 20-40 lakh range.
Rental Market Indicators
The robustness of any property market is evident when the rental market aligns with capital values. Approximately 95 percent of localities tracked experienced a rise in lease values, suggesting that the city is primarily driven by end-users rather than investors.
IT-driven localities like Electronic City, Whitefield, and Sarjapur are well-maintained areas with efficient transportation and community interaction, which has boosted rental demand in these regions. Basic amenities such as water, power, and essential facilities have contributed to the surge in rental activities.