In a city like Bangalore, similar to Hyderabad, Pune and Chennai, IT companies have been expanding their campuses dramatically. Bangalore, being the IT hub of the country is home to almost all the big names in the IT industry and is often called' Silicon Valley of India'. With easy availability of real estate in Bangalore, even large real estate PE firms have made significant investments here. Consider Blackstone, which invests mostly in realty firms, has bought stakes in two commercial properties in Bangalore recently, ie, Embassy Golf link and Manyata Embassy Business Park.
While it can be argued, that the absorption of real estate Bangalore by IT/ITeS dipped by more than 15% in 2012 due to the slowdown in global demand for IT services, prices have however, remained firm and even shown upward trend in select localities. Some of the defining features of the real estate sector in the IT city are:
With inflation and construction costs moving northwards, the price trends are changing dramatically. Real estate availability trends indicate that availability of residential properties in Bangalore which are priced below Rs 3,000 per square feet has reduced from 43% to 8% in the last 4 years. Meanwhile, properties in the price range of Rs 5,000-10,000 per square feet is expanding much rapidly.
One of the largest IT companies, Wipro is adding another 2.5 million square feet to their existing campus. Similar plans exist for many other large IT companies too.
The real estate boom can be best appreciated by the behavior trends of real-estate brokers. There are about 3,000 real estate consultants in Bangalore. There are many doctors, accountants, software engineers and even the local delivery boys/newspaper man, who have turned into overnight real estate consultants to make a fast buck. As educated job seekers flood into Bangalore, prices of apartments have tripled or quadrupled within a decade, further fueling price rise in real estate in Bangalore.
In effect, life-style changes and higher affordability levels are driving such increase in property rates. However, residential property investors can still obtain prices below Rs 4,000 per square feet in good projects for long-term investment and appreciation.
In 2013, North Bangalore will reflect the huge potential for capital appreciation of residential property. This area will thrive on the back of increased IT investments and the Aerospace SEZ being planned by the Government. Whitefield too will continue to be a favorite destination for investors. Further, North and East Bangalore will be the focus areas for retailers, mall developers and retail property investors. The rapidly developing infrastructure and expanding residential localities in these locations are all positive developments for increase in real estate prices.
While it can be argued, that the absorption of real estate Bangalore by IT/ITeS dipped by more than 15% in 2012 due to the slowdown in global demand for IT services, prices have however, remained firm and even shown upward trend in select localities. Some of the defining features of the real estate sector in the IT city are:
With inflation and construction costs moving northwards, the price trends are changing dramatically. Real estate availability trends indicate that availability of residential properties in Bangalore which are priced below Rs 3,000 per square feet has reduced from 43% to 8% in the last 4 years. Meanwhile, properties in the price range of Rs 5,000-10,000 per square feet is expanding much rapidly.
One of the largest IT companies, Wipro is adding another 2.5 million square feet to their existing campus. Similar plans exist for many other large IT companies too.
The real estate boom can be best appreciated by the behavior trends of real-estate brokers. There are about 3,000 real estate consultants in Bangalore. There are many doctors, accountants, software engineers and even the local delivery boys/newspaper man, who have turned into overnight real estate consultants to make a fast buck. As educated job seekers flood into Bangalore, prices of apartments have tripled or quadrupled within a decade, further fueling price rise in real estate in Bangalore.
In effect, life-style changes and higher affordability levels are driving such increase in property rates. However, residential property investors can still obtain prices below Rs 4,000 per square feet in good projects for long-term investment and appreciation.
In 2013, North Bangalore will reflect the huge potential for capital appreciation of residential property. This area will thrive on the back of increased IT investments and the Aerospace SEZ being planned by the Government. Whitefield too will continue to be a favorite destination for investors. Further, North and East Bangalore will be the focus areas for retailers, mall developers and retail property investors. The rapidly developing infrastructure and expanding residential localities in these locations are all positive developments for increase in real estate prices.
Courtesy By :- http://www.sooperarticles.com/real-estate-articles/real-estate-developments-bangalore-1158069.html
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