Bangalore Real Estate Goes Green

Bangalore real estate activities are witnessing a stagnation period. There is identified stock of unoccupied properties in the Whitefield area. The reason gauged is all the IT and IT enabled service companies are heading towards green buildings. Green buildings are the peg of the year as the world is adapting green arena to counter various environmental issues. All builders and developers are bound to adopt green technology to construct their buildings.

The upcoming real estate activities in Bangalore are happening at outer ring road and peripheral areas. Few buildings where the construction has just completed are lying vacant. The Bangalore real estate market is experiencing such vacant unit supply in past couple of months. The reason sought is the increasing demand of green building. The newly constructed Bangalore properties are not meeting green buildings requirements and thus they are not rated as green.

The IT and ITES companies are not occupying this space and as a result the real estate values are stagnating and the property prices are going down with time. In the last quarter demand – supply mismatch was approximately a million sq.ft. (as stated in Cushman & Wakefield report).

The Bangalore Real Estate Builders and property developers are still reluctant in building green homes and using new technology because of their profit margin. Also all the upcoming and current projects are overpriced than the market value.

The Whitefield region in Bangalore, where IT and ITES firms occupy most of the office space, could be delivered another blow when a Bangalore government scheme which provides rebate in tax to the companies located at “technology parks” comes to an end next year.

Most of the companies will head towards Special Economic Zones (SEZ) which is designed as per the green codes and this will further render some Bangalore properties vacant. Thus Bangalore real estate builders have no choice but to start constructing green buildings to save the environment as well as their own business

A Few Factors Contributing To the Steady Real Estate Growth in Bangalore

Irrespective of the volatility in the Indian real estate market, Bangalore has accomplished a stable growth in real estate when compared to other metropolitan cities. There has been a great increase in people purchasing homes and investing in real estate in Bangalore.

Here are a few factors that contribute to the growth of the real estate sector in Bangalore,

1. The increase in luxury residential projects sprouting across parts of the city increasingly changes the face of the Bangalore. Residential projects by renowned real estate developers in Bangalore are paving the way for high-end luxury living. This has created a growing demand for villas, penthouses, and apartments amongst NRIs and locals.

2. The boom in the IT industry and the relative job creation has accelerated the rate of people moving to Bangalore from other parts of India and globally, for work. This has increased the demand for real estate developers in Bangalore to offer state-of-the-art residential accommodation for the growing populace.

3. One of the most important factors encouraging real estate growth is the expanding of manufacturing hubs across major districts in Bangalore.

4. The Metro lines that are functional or still to start across various parts of the city have added to the infrastructural strength of the city, resulting in the growth of Bangalore’s realtor market around the areas that are well connected, even adding to the prices of these properties.

5. Bangalore accommodates several reputed and ranked educational institutions across the city. Students move to Bangalore for the further education, which is coupled with ample of job opportunities in IT and other favored industry, leading to a steady demand for apartments in Bangalore.

6. The housing provides a good return on investment especially in the posh localities like Hebbal, Indira Nagar, Hennur, Yelahanka and Whitefield areas. These places have seen the highest demand for luxury residential property and its growth.

7. Infrastructural growth, the mushrooming of malls and places of entertainment and areas of interest around the city has made it a preferred location for buying property. Places that are prime locations in Bangalore have seen a steady rise in top builders in Bangalore competing to create luxury homes with convenience at an arm’s length.

8. The property prices in Bangalore have not reached their peak compared to all major metropolitans. This creates an affordability for people to invest into new and upcoming residential projects by reputed developers in Bangalore.

Bangalore remains the fastest growing metropolises in India. Promising a future with state of the art and infrastructural presence, alongside a multi-cultural population, countless entertainment choices, and a scope for a hearty family life, making it one of the best places to invest across India.

Real Estate Trends: Luxury Apartments in Bangalore

In recent years, Bangalore, also called the silicon valley of India, has grown rapidly. The city’s lifestyle, demographics and job opportunities have attracted people from all over India. With this, the need for luxury apartments in good locations has also surged. Customers are not only viewing these homes as an asset, but also as a change that offers an enriched lifestyle.

Spurt in luxurious apartments in Bangalore

In the last few years, Bangalore’s real estate market has seen a surge in luxurious houses. These houses are primarily targeted towards high net worth individuals and therefore, real estate developers are focusing on high-end villas and row houses equipped with all the modern amenities.

Profitability is the main reason for developers to join the premium houses bandwagon. Prices of these homes range between Rs. 2 to 12 crores. The homes are not only large in terms of square feet area, but also have added benefits such as Wi-Fi, swimming pool, jogging track, badminton courts, sensor locks, etc.

Thanks to technological advances, developers are able to build customized villas having amenities of international standards. Bangalore’s real estate developers have reinvented their offerings from time to time, which have further fuelled the demand for high-end residential homes.

Region wise growth of premium apartments

North/North West

A series of premium apartment projects ranging between Rs. 2 to 4 crores have been undertaken in the sub-markets of places like Hebbal. Developers have chosen the place because of its prime location, good connectivity and ongoing infrastructure development. Numerous luxury houses have come up in the area between Hebbal and Yelahanka. North Bangalore has all the potential to develop as the hub of premium residential homes.

South

In the south, Bannerghatta Road has seen a surge in premium villas and houses priced between Rs 1.5 to 4 crores. Localities like J P Nagar and Banashankari too have seen a surge in high-end residential villas.

East

Premium villas have come up in the east in places like Budigere Cross, Krishnarajapuram and Whitefield Road. The price ranges between Rs 2 to 4 crores. Proximity to the city’s airport and extensive bus connectivity has added tremendous value to these areas.

West

Several high-end residential projects have been launched in places like Yeshwantpur and Dr Rajkumar Road. Because of presence of several retail chains and hotels, demand for villas from these places have shot up dramatically.

As of now, there are many luxury home units in the city at various stages of planning and construction. Value of luxury homes in Bangalore is much higher as compared to other metros in India. The conducive real estate scenario in the city will further propel the demand of high quality housing in coming days.