Mayank Saksena, MD – Land & Head – South India, ANAROCK Property Consultants
Driven largely by the end-users, the Bengaluru real estate market has remained resilient even during the worst phase of the property cycle in the country. Realistic property prices, ‘real’ demand by end-users, developers’ strategy to keep the new launches under control along with their consistent efforts to minimize the demand-supply gap have worked in favour of the ‘Garden City.’ Since the end-users here are mostly professionals working across service sectors led by the IT/ITeS, developers have been conscientiously aligning their offerings to this demand.
For instance, to cater to the demands of a tech-savvy homebuyer, developers have launched ‘Smart Homes’ for their buyers with several features at the ‘click of a button.’ Additionally, builders here were among the first to offer online payment system for property.
One of the major positives of this city is that it has always adapted well to the changing market dynamics, and therefore remains well-positioned for future growth as well. As per ANAROCK data, the city added 8,800 units in Q2 2018, a quarterly increase of 28% against the preceding quarter. On the sales front too, Bengaluru saw 27% rise compared to Q1 2018.
Prices of residential properties in premium areas
Emerging residential areas in the city
The top 3 emerging areas in the city based on the new supply and the inherent demand by prospective buyers include Kanakapura Road and Electronic City in south zone and Devanahalli in the north.
As per ANAROCK data, Devanahalli is seeing a spurt in real estate activity since 2017 with major builders like Embassy, Salarpuria Sattva and Ozone launching their residential projects. The area has garnered the interest of buyers due to its proximity to the airport and ample land availability, which has helped in ensuring good supply. Quite a few large-size projects now dot this region.
Electronic City is largely seeing demand by IT/ITeS professionals and has relatively affordable property prices. Enhanced connectivity to major areas via metro is boosting the realty demand in Kanakapura Road. The advent of IT/ITeS parks in and around the area is also a major reason for high supply of units.
Most sought-after residential localities
As per ANAROCK research, the top 3 suburban areas in Bengaluru include Yelahanka, Sarjapur and Electronic City. Yelahanka is a self-sustained micro market which boasts of excellent connectivity to the international airport, has ample social infrastructure facilities and is easily accessible to the IT hub in Hebbal.
Meanwhile, Sarjapur is strategically located and has ample residential options across budgets. Further up towards the Sarjapur town, there are many villa projects. Also, the locality boasts of having some of the best international schools of the city.
The affordable property prices in Electronic City make it one of the most sought-after residential destination in the city.
Status of ready-to-occupy homes
As per ANAROCK data, out of the total new supply in Bengaluru since 2013 till H1 2018 (approx. 3,0,6000 units), nearly 40% is ready-to-move-in currently. And the top 3 areas that are home to maximum ready-to-move-in properties include Whitefield, Sarjapur Road, and Kanakapura Road. Prospective buyers have ample choices across different budget ranges in these top localities
Segment-wise pricing classification:
Affordable Segment – <₹40 lakh
- Mid Segment – ₹40 lakh to ₹80 lakh
- Luxury segment – ₹80 lakh – ₹ 1.2 crore
- Ultra-luxury segment – >₹1.2 crores
Interestingly, the mid-segment is the most dominant category in the city in terms of both demand and supply. As per ANAROCK data, out of the total 15,620 units launched in H1 2018, as many as 10,370 units comprised of the mid-segment properties. The top 3 areas that saw maximum launches in the mid-segment are Electronic City, Whitefield and Kanakapura Road