Bangalore Residential Market
Bangalore has been the fastest growing city of India over the past few decades. Information Technology has been the major growth driver responsible for aggressive real estate development of the city. Being the IT Hub of India, Bangalore has a multi-cultural population, good social infrastructure, excellent educational institutes and an improving physical infrastructure. Bangalore is also the third-largest real estate investment hub for High Net worth Individuals (HNIs) and tops the list in terms of investments from Non Resident Indians (NRIs) looking at settling down in India in the future.
The city attracts a sizeable population due to its cosmopolitan culture. Home to over 10,000 individual dollar millionaires, Bangalore has a large base of expatriates living and employed in the city. Bangalore is one of the most promising markets for Residential projects in India.
The main driving factors for mid-segment homes are social infrastructure, proximity to workplace, good physical infrastructure and access to medical and educational facilities Affordable Segment – Below Rs. 50 lakh Affordable housing will see constant demand on the outskirts of Bangalore, in all directions.
Availability of large land parcels at lower prices has encouraged affordable housing projects in these areas. Also, the planned Metro rail and the Peripheral Ring Road have increased demand on the outskirts of Bangalore.
Market Overview: The Bangalore market witnessed improved residential real estate absorption in 4Q13 in comparison to 3Q13.
Bangalore's residential markets are exhibiting continued steady growth in 1H14. Capital values are forecast to stabilize and rents for residential properties in the city are predicted to record marginal growth. The first half of 2014 will be defined by a moderate number of launches of residential projects, and stable demand. Rents and capital values will remain stable during 1H14 and increase in 2H14.