Background
According to a recent study by
real estate and property service provider Jones Lang LaSalle (JLL), Bengaluru
has been ranked among top 20 technology-rich cities. With the rise in Namma Metro
project, better connectivity through public transport, prominent startup
culture and high growth potential, Bengaluru is emerging as a paradise for
property investment.
According to property
consultants Knight Frank India, Bengaluru has emerged as the second largest
property market in terms of the growth in apartment sales, surpassing bigger
markets like National Capital Region in the first half of 2015. Bengaluru sold
22,234 residential units as compared to 14,250 units in NCR, 15,524 apartments
in Pune and 9,091 units in Chennai. The
city has witnessed highest new launches as compared to the top eight cities in
the country with 21,400 units launched in the first half of 2015.
Potential
Bengaluru is also known as the
Silicon Valley of India, the name the city acquired after the IT (Information
technology) revolution. The city emerged as the IT hub in 1990s, with setting
up of various technologies and multinational firms. Bengaluru has aided India’s
debut on the ‘City Momentum Index’ (CMI) Top 20 list - an annual survey carried
out by Jones Lang LaSalle (JLL) globally. It reinforced the city’s status of
being one of India’s premier technology centres. A United Nations report titled ‘State of the
World’s Cities’ praised Bengaluru’s IT revolution. It is also interesting to
note the development and transformation this city has witnessed over the years.
Biotechnology is currently a
rapidly expanding field in the city. The startup culture has become a distinctive
feature of the city. Bengaluru has been
the focal ground for various successful startups. This has widened the scope of
employment opportunities and led to the development of multi-cultural
population with sound infrastructure.
As one of the fastest growing
cities, Bengaluru is emerging as an ideal location for education and research
as well. Every year Bengaluru attracts a sizeable student population from
pan-India. The city is also a home to several International education
institutes. Bengaluru has more than 125 R&D centres in the field of core
engineering, information technology, basic and applied sciences, etc. The city
is one of the top choices for engineering students and aspirants. Many Indian
and foreign IT and manufacturing companies have their R&D centres here. Bengaluru
is also known as a centre for health tourism. Bengaluru is, thus, full of
opportunities for everyone.
As compared to other
metropolitans across India, real estate is doing fairly well in Bengaluru. The
city’s real estate sector is one of the desirable markets across India. A
recent report by Bank of America (BofA) Merrill Lynch showcases that Bengaluru’s
housing is attractive due to its affordability. The outskirts are potential
market to tap into. The prime emphasis is on the outskirts, due to the
profitability and growth of the area. Bengaluru will continue to hold potential
for developing affordable housing projects in the future as there is huge
demand, especially from the low-mid level income groups.
Bengaluru’s real estate scene
can be defined as an end user market. The sector in the city is not dominated
by the speculative market influences as compared to others. Professionals with disposable income have recognised the potential of real
estate investment which have higher returns as compared to other asset class. Bengaluru
developers have a wide range of offerings from luxury apartment to mid-range
apartments. Land investment is another eye-catching real estate segment. In Bengaluru
the potential in the outskirts is much higher than the already developed area. The
rate at which people are migrating to Bengaluru has increased significantly due
to rise in employment opportunities. This will eventually lead to expansion of
city limits and investment in the outskirts.
Profitability from investment in outskirts is bound to be high due to the
development in and around city limits. Investing a small portion of your
savings in outskirts can yield you significantly higher returns over a period
of time.
Locations
Few of the top
areas to invest in Bengaluru are:
Chandapura
Chandapura is 6 km
away from Electronic city and is easily accessible. Phase II of Bengaluru Metro
will be completed by 2020 in the area and Chandapura circle is already included
in the rail network. The location has multiple renowned educational
institutions like IFIM Business School (IFIM), IHMR - Institute of Health
Management Research, amongst others.
Hennur
Hennur is situated
in North Bengaluru and has good road network connectivity. Hennur is a perfect
location for music and food lovers. It is 12 km away from M. G. Road and 17 km
from Koramangala. Hennur is one of the
prime locations with on-going development projects in and around the area.
Whitefield
The location
recorded boom in the residential construction in the latter half of 1990s.
Whitefield is easily accessible as it has extensive city bus connectivity.
Namma Metro project is expected to cover this location under its second phase.
The area has various shopping malls like The Forum Value, Phoenix Market City,
Park Square mall and Inorbit Mall. These features widen the scope of investment
in the area.
Devanahalli
Devanahalli is located close
to the Bengaluru International Airport, the second largest airport in India.
The area has witnessed significant development due to Devanahalli Business Park.
With two more IT Parks coming up adjoining to the airport, this area would
continue to be a business hub. An Aerospace Park, Science Park and a Financial
City are also planned around Devanahalli. This makes it one of the most preferred
locations on the outskirts of Bengaluru.
As compared to the other
states and cities across India, Bengaluru has emerged as one of the best
options for real estate investment. Bengaluru is one of the fastest growing
metropolitans in India and has a wide range of offering in the real estate
segment. With various on-going development projects, especially in the
outskirts. The segments in the outskirts hold significant potential for
investment and growth.
Publication: Deccan Herald
Author: Lansel D`souza, Senior Vice President, Expat
Projects and Development Pvt. Ltd.
