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Realty in Bangalore to see 25 per cent growth


Realty in Bangalore to see 25 per cent growth

Last updated: May 10 2012
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  • Realty in Bangalore to see 25 per cent growth

    The real estate sector in Bangalore has grown to a large extent in the past one year. In the year ahead, the city’s realty is expected to grow by 25 per cent, estimates the Karnataka Chapter of the Consortium of Real Estate Developers’ Associations of India (CREDAI).

    “We are expecting the realty to grow by 25 per cent in the coming year. Last year too we have witnessed a similar growth,” said Sushil Mantri, President, CREDAI Karnataka.

    As per studies conducted last year, the city is likely to absorb about 7.1 million sq ft of office space against a supply of 7 million sq ft. While demand for office and commercial sales in the city saw a rise, residential sales remained slow.
    Experts said that the city witnessed a great strength in high street leasing and rent, and capital value has increased nominally in a few sub-markets. Also, there was a rise in rental value as demand by retailers remained strong.

    With commercial office space developers offering favourable options, predictions for 2012 are that several IT companies in the city will look at pre-leasing office space.

    However, analysts opine that office space supply will outweigh demand.
    “FDI in multibrand real estate, is expected to catalyse a lot of demand from international retailers. International luxury brands will restrict their growth plans to Mumbai, Delhi and Bangalore,” states a projected report by Jones Lang LaSalle India, Realty Intelligence firm.

    The report states that the mid-end and affordable housing segments will record healthy appreciation in capital value in short term from a low base.

    Realty in Bangalore to see 25 per cent growth | Track2Realty || India's real estate e-newspaper
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    Re : Realty in Bangalore to see 25 per cent growth

    Bangalore realty market attracts HNIs

    BANGALORE: The residential real estate market in Bangalore has emerged as an attractive investment proposition, with high net worth individuals attracted by the city's stable demand outlook and attractive pricing, mention a recent report by CBRE.

    "Around 30% of the total real estate demand in Bangalore is investor driven while 70% is end users," says J C Sharma vice chairman and MD of Sobha Developers.

    The growing demand for home upward of Rs 1.5 crore has led to increase in launches of new properties in the premium segment. Some of the key luxury projects launched in 2011 included Nitesh Logos at MG Road, Four Seasons' CityView at Bellary Road, Sobha City at Thanisandra and Prestige Edwardian at Cunningham Road

    "We have sold 100 units in last three months. There is a huge demand from people who now wants to upgrade to bigger house," says Raj Menda MD RMZ Corp

    However, property prices were largely stable for most part of the year, with growth witnessed in the last quarter only. "Capital values in and around the CBD appreciated by 12-15% y-o-y," mentioned the report.

    Bangalore realty market attracts HNIs - The Economic Times
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