While you are on the lookout for potential housing localities in Bangalore, 99acres.com unfurls the list of key gainers YoY.
Undeterred by macro-environment challenges, Bangalore housing market remained stable throughout 2017-18. While residential sales dwindled and new supply suffered at the hand of regulatory norms in H1, the market gained ground towards the end of 2017.
Recuperating from the temporary hiccups, several locales registered stability and recorded an upward shift in their capital and rental values. However, some outranked others particularly in the East and South parts of the city.
Urban pockets in proximity to reputed IT giants and transport corridors, continued to emerge as the shining realty spots, capturing maximum interest of investors and end-users. Offering a plethora of residential opportunities across all budgets, these locales have evolved to be a buyer’s paradise. Besides, new infrastructure projects, IT influx, and roll-on effect of saturated neighbors also had a significant bearing.
Here are the top 5 residential micro-markets of Bangalore:
Situated along Hosur Road in the South, Electronic City topped the chart with a seven percent hike in average capital prices in Jan-Mar 2018 compared to the same period a year ago. Identified as the country’s largest IT/ industrial park, Electronic city is one of the most preferred residential markets among buyers and temporary home seekers willing to stay in proximity to commercial pockets. Average capital prices here vary between Rs 3300 and Rs 4400 per sq ft and witnessed seven percent growth YoY. Rental rates also recorded a hike of three percent annually.
While the area offers best infrastructure set-up, the recently started suburban train services from Baiyappanahalli to Electronic City via Bellandur elicited residential demand leading to a spike in realty prices, according to 99acres Insite Report.
From a far-off suburb in the East, to a famous retail zone and now a realty hotbed, Marathahalli has witnessed a sea change over time. While the city realty agent Karim Peer Khan attributes it to the IT boom and proximity to commercial hubs such as Whitefield, Electronic City and the HAL Airport, Zakir Hussain, from Topend realty, opines that retail development and affordable pricing have been the key contributors for its growth. Currently, Marathahalli has a cosmopolitan flavour and doles out hordes of options from cost-friendly to luxurious units.
Average capital prices in Marathahalli range between Rs 5000 and Rs 6500 per sq ft. On an average, the locality witnessed a six percent hike in capital values per annum, which makes it a hit for investors and end-users. On leasing front, the locality remained a forerunner and showcased maximum average rental hike of eight percent YoY.
From a key technology hub to a settler’s haven, Whitefield has emerged as a shining spot for real estate investors offering sound investment return and assured rental income. As per 99acres’ Bangalore Insite, the locale has witnessed a five percent increase in average weighted capital values YoY. Annual rental rates in Whitefield have also spiked up by three percent, thanks to its strategic position which makes it a sought-after choice for builders and investors. The area is well-connected to Madras Road –National Highway 4, Old Airport Road and Varthur Road. Besides, many reputed builders have proclaimed new launches which has kept the ante up in this IT hub. Average capital values here start from Rs 4,500 per sq ft and go up to Rs 5,500 per sq ft.
Raja Rajeshwari Nagar (RR Nagar)
Along the busy road of Mysore, Raja Rajeshwari Nagar falls in the southern part of the city and is largely known for its landscape and religious centers. Moreover, the influx of IT companies and strategic location has also added to its popularity. The area is only 4 km from Bangalore-Mysore Infrastructure Corridor (BMIC) which makes commutation easier between two cities - Bangalore and Mysore. Besides, proposed four lane road construction towards National Highway 7 and National Highway 4 are expected to further thrust market sentiment northwards.
Average capital prices in RR Nagar vary between Rs 3,800 and Rs 4,000 per sq ft, which makes it one of the most affordable housing destinations in the city. Thus, when you are looking for stable returns on investments in the long-term, RR Nagar is the locality to bet on.
Acting as a gateway to two important IT clusters – the Outer Ring Road cluster (Whitefield, Marathahalli and Bellandur) towards the East and Electronic City in the South, Silk Board has gained huge popularity from the property seekers. Besides, the metro rail project from Silk Board to Bommasandra is another key development on the cards that has garnered investors eyeball. As the project is anticipated to see its completion in the next three years, Silk Board would be a safe realty bet, shares Khan.
As of now, average capital prices in Silk Board revealed a three percent hike YoY. However, the rates are likely to grow further between 10 and 15 percent once the metro is in full swing. Current weighted capital values are from Rs 3800-4,800 per sq ft.
*99acres.com Insite Report
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. 99acres does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.