Where Are End-Users In Bengaluru Investing?
As far as buyer enquiries are concerned, India's information technology (IT) capital Bengaluru is next only to Mumbai and Pune. The Karnataka capital accounted for 18 per cent of the total buyer searches that active real estate markets across India recorded in the past one year. Compact, value-for- money homes, preferably 2BHK units, saw the highest demand as is clear by a latest report by PropTiger.
More into the city
Data show 82 per cent of these inquiries came from end-users in the city while only 18 per cent was from investors. However, both investors and end-users have been skimming through affordable properties with luxury garnering 24 per cent demand from end-users and 18 per cent from investors.
Who is driving the demand?
It is not surprising that the Silicon Valley of India receives most of these inquiries from those employed in the IT/ITeS sector. Consequently, one-third of the total inquiries are made for real estate at Whitefield and Bengaluru East, thanks to their proximity to business hubs and affordable property. Majority of end-users are jostling near the most-preferred localities such as Whitefield Hope Farm Junction, KR Puram, Bellandur, Kannur on Thanisandra Road and Hoskote as is clear by data over the last 12 months. Hoskote by far receives the most number of queries for 1BHK units.
Talk about investors, Hoskote and Kannur have caught their fancy because of steady development and scope of good returns. Besides, Electronic City Phase I, Harlur, Begur, Avalahalli Off Sarjapur Road constitute the preferred localities. Refer chart.
All about luxury
Bengaluru has always been known for offering fat pay cheques. Given the cost of living, this is justified, too. Developers are keen to match the taste of the well-travelled, connoisseur of lifestyle earning big bucks and hence luxury in Bengaluru cannot take a backseat. Data suggest that Bellandur, Begur and Harlur have garnered interest from luxury home buyers as well as from mid-income ones.
The big players in the real estate industry have made their presence felt in the city. Bellandur, for example, boasts projects by reputed developer priced between Rs 1.5 and Rs 7.5 crore.
Apart from the basic amenities, these projects also offer gymnasiums, cafeterias, club houses, landscaped gardens, rain water harvesting, staff quarters and multipurpose rooms. In Begur, such apartments and villas can command as much as Rs 4 crore.
The price climb
Since May 2013, the average capital values in the city have only climbed. What stood at Rs 4,100 per sq ft is at Rs 4,800 per sq ft in 2017. On an average, a 1BHK unit will cost you about Rs 32 lakh, a 2BHK unit for Rs 51 lakh, a 3BHK unit moves for approximately Rs 94 lakh and you will have to shell over Rs 2.75 crore for a 4BHK unit. Close to 9,000 projects are on the market with 600 launching soon and over 1,200 under various stages of construction.