Rate of absorption for row houses in Bangalore has grown at a rate of 42 per cent since 2011. This property type is fast gaining preference among the HNIs residing in the city.
Dwelling units arranged in a row (minimum of three) attached to each other by a common wall with only front, rear and interior open spaces are termed as Row Houses. Popular in the pre-industrial era, the concept is steadily gaining prominence in Bangalore and is redefining the luxury segment of the city.
According to a recent report by Assetz Property Group and Vestian, rate of absorption of such houses, in the past four years, has increased by 42 per cent. Changing demand like live-work spaces and secondary suites to house aging parents or young children, is pushing the demand for such properties.
“Apart from this, aspiration for a luxurious lifestyle and popularity of the concept of ‘new luxury’ are key factors contributing to the growing demand of row houses in Bangalore,” says the official spokesperson from Assetz Property Group. Majority of the demand for such properties is generated from families having household income of Rs 20-50 lakh per annum.
Priced between Rs 1.5 and Rs 3 crore, such properties are being termed as ‘affordable luxury’. While villas are priced above Rs 3 crore, the asking rates of luxury apartments is above Rs 2 crore in the city. Hence, row houses are offering young households a comparatively affordable way of upgrading their lifestyle. Even though the price is high, these properties generate better appreciation than apartments. The annual price appreciation of row houses is about six to eight per cent per annum while apartments command an appreciation of two to five per cent.
“Although the price appreciation is limited during the construction phase to keep the ticket sizes affordable, in the long term, these products appreciate higher than apartments due to higher undivided share of land, says the official spokesperson from Assetz Property Group. Rental yield for such properties is in the range of 2-3 per cent.
Currently, majority of such properties are available in North Bangalore and along Sarjapur Road, Kanakapura Road and Mysore Road. These key markets account for 80 per cent of the total supply, according to the report. Nearly 75 per cent of the units developed are being offered by Grade-A developers such as BCIL, Prestige Group, Sobha Developers and Salarpuria Sattva. Almost all row houses are offering 3BHK and 4BHK configurations with an area of 2000-4000 sq ft.
Below is a list of capital values of row houses in these locations:
In the next 2-3 years, row houses are expected to capture at least five per cent of the premium segment of Bangalore. Not only are they being made an integral part of large integrated townships, the city is also witnessing construction of large row house communities that consist of 200-400 units.