Real estate market in Bengaluru holds great promise: Ashwinder R Singh
Introduction
Real estate markets across the globe have always been dynamic, ever-changing, and unpredictable. Bengaluru, previously known as Bangalore, is no exception in this regard. Over the recent years, the city’s real estate market has witnessed some promising trends, making it an increasingly popular choice for investors and property seekers.
With a growing IT sector, favorable government policies, robust infrastructure development, and high demand for both commercial and residential properties, the real estate market in Bengaluru holds great promise for the future. And who better to shed light on these developments than Ashwinder R Singh, a respected expert in the real estate industry?
In this blog, we will discuss the insights offered by Singh, which highlight the importance of the Bengaluru real estate market. We will look at its current trajectory, as well as explore what makes it one of the top choices for investors in India. So, without further ado, let’s dive into the thriving property scene of Bengaluru.
Bengaluru: A City of Opportunities
India’s Silicon Valley, as Bengaluru is often called, is home to numerous multinational corporations, tech giants, and startups alike. This bustling city has consistently demonstrated significant growth in terms of economic activities, and with a robust IT-driven economy, the cumulative effect has extended to the real estate sector as well.
The increase in job opportunities, coupled with affordable housing options and improved connectivity throughout the city, has contributed to a surge in demand for residential and commercial spaces. Furthermore, the influx of professionals seeking better career prospects has enhanced the attractiveness of investing in real estate here.
The focus of the state government on creating the necessary infrastructure, promoting world-class institutions, and boosting the startup ecosystem has further heightened Bengaluru’s appeal as a viable real estate destination. Let’s now look at why industry experts are optimistic about the city’s real estate market.
For instance, a recent report by JLL India, a global real estate services firm, highlighted that Bengaluru is one of the top five preferred cities for office space absorption in Asia-Pacific, indicating investor confidence in the city’s real estate potential.
- Home to multinational corporations and tech giants
- Strong IT-driven economy
- Increase in job opportunities
- Affordable housing options
- Improved connectivity throughout the city
- State government initiatives to boost infrastructure and startups
Focused Development Sectors
Besides the booming IT sector, several other industries have been gaining momentum in Bengaluru. These sectors include biotech, aerospace, defense, textile/apparel, and healthcare, all of which have contributed to the exponential growth of the city’s real estate market.
With the emergence of these diverse sectors, Bengaluru has transformed into an economic powerhouse, giving rise to substantial property demand. Moreover, the growth of these industries has necessitated the establishment of large commercial hubs and corporate parks in the city, providing investors with lucrative prospects for capital gains on their investments.
One of the shining examples of this multi-sector growth can be seen in the nearly 50-acre Peenya Industrial Area in northwest Bengaluru, where many small and medium enterprises operate alongside multinational firms. This industrial development has driven the demand for residential properties in nearby locations.
Among the various developments planned, North Bengaluru is set to witness a massive facelift, thanks to the upcoming Information Technology Investment Region (ITIR) and Aerospace Park projects, expected to create more than 4 million square feet of commercial and residential space.
- Emergence of diverse industries
- Economic powerhouse status
- Large commercial and corporate hubs
- Lucrative investment opportunities
- Industrial development driving residential demand
- Upcoming projects in North Bengaluru
Demand for Affordable Housing
Affordable housing has emerged as one of the most significant drivers of growth for Bengaluru’s real estate market over the past few years. Growing aspirations of homebuyers, increased income levels, and favorable policies have fueled this segment’s rapid expansion.
Bengaluru’s real estate developers have been quick to respond to this demand, rolling out numerous affordable housing projects across the city. Locations offering affordable housing options attract a considerable workforce and promise good rental returns, keeping investor interest alive.
Furthermore, government initiatives like the Pradhan Mantri Awas Yojana (PMAY) are making homeownership accessible to more people, with financial incentives such as lower interest rates and subsidies supporting their dreams of owning a home.
An excellent example of an affordable housing project in Bengaluru is Sobha Dream Gardens, located along Bellary Road in North Bengaluru – connectivity benefits, nearby commercial hubs, and well-planned apartments make it an attractive investment opportunity.
- Rapid expansion of affordable housing segment
- Increased income levels
- Favorable government policies
- Promising rental returns
- Accessible homeownership through PMAY subsidies
- Well-planned affordable housing projects
Infrastructure Development
Infrastructural advancements play a significant role in fueling the growth of the real estate market. A city with well-developed infrastructure attracts businesses and residents alike, as it becomes a preferred destination for setting up offices and homes.
Bengaluru has been investing heavily in infrastructure development projects, and leaps have been made in terms of roadways, metro connectivity, airports, and more. This focus creates employment opportunities and subsequently propels the demand for housing and commercial spaces.
Several other ongoing and proposed infrastructure projects in the city include the Peripheral Ring Road (PRR), elevated corridors, suburban railways, and extensions to existing metro lines – all aimed at improving connectivity, easing traffic congestion, and boosting property markets in their vicinity.
A prime example of the positive impact of infrastructure development is the Namma Metro project’s Phase II expansion, which has led to increased property value appreciation and demand along its forthcoming routes.
- Importance of infrastructure development
- Attracts businesses and residents
- Well-developed roadways, airports, and metro connectivity
- Ongoing and proposed projects boosting property markets
- Easing traffic congestion
- Increased property value appreciation
Investment Returns
One of the primary reasons why investors are increasingly drawn to Bengaluru’s real estate market is the potential for healthy investment returns. The steady demand for both residential and commercial properties ensures that property values continue to appreciate over time.
Bengaluru consistently ranks among the top Indian cities offering promising rental yields, especially in areas close to IT hubs or well-connected by public transportation. Investors can also capitalize on the strong office market and high absorption rates for commercial spaces, resulting in an overall profitable venture.
Moreover, long-term prospects for property appreciation in Bengaluru are bright, as the city continues to undergo transformative infrastructural changes that directly impact real estate valuations. Areas witnessing rapid development often offer better capital gains potential in comparison to other markets.
For instance, Whitefield is a prime example of an area with consistently high rental yields and steady property appreciation due to its proximity to the ITPL tech park, connectivity through Outer Ring Road, and upcoming metro connectivity as part of Namma Metro Phase II.
- Potential for healthy investment returns
- Steady demand for residential and commercial properties
- Promising rental yields
- Strong office market and high absorption rates
- Long-term property appreciation prospects
- Capital gains potential in rapidly developing areas
Growth Hotspots
Bengaluru’s property market offers numerous growth hotspots, attracting significant real estate investments. Factors like infrastructure development, connectivity, availability of land, presence of economic drivers, and affordability play crucial roles in deciding these hotspots.
While some areas have already witnessed substantial development, making newer areas stand out is essential. This could either be due to upcoming infrastructure projects or improved connectivity options, which help in unlocking untapped potential in these parts of the city.
Future growth points within Bengaluru include locations such as North Bengaluru, East Bengaluru, and areas along the PRR – all offering lucrative opportunities for both developers and investors alike.
One notable growth hotspot is Hebbal, with several real estate projects primarily catering to the affordable and mid-segment markets, proximity to major corporate parks and SEZs, excellent road connectivity, and proposed metro connectivity as part of Namma Metro Phase II.
- Factors determining growth hotspots
- Infrastructure development and connectivity
- Availability of land and affordability
- Upcoming infrastructure projects unlocking potential
- North Bengaluru, East Bengaluru, and PRR areas as future growth points
- Lucrative opportunities for developers and investors
Trends Shaping the Market
The real estate market in Bengaluru is constantly evolving, with new trends emerging that help shape its landscape. As a dynamic city, rapid urbanization, technological advancements, and lifestyle changes directly influence property demand and investment patterns.
Some of these game-changing trends include co-working spaces, service apartments, luxury housing targeting high-net-worth individuals (HNIs), and transit-oriented development (TOD) – all signaling a maturing market catering to diverse requirements and preferences.
Additionally, sustainability has emerged as a vital factor, with more emphasis on green buildings, energy-efficient homes, and eco-friendly construction practices that cater to environmentally-conscious buyers and tenants.
One example of an upcoming sustainable residential project in Bengaluru is Vaishnavi Serene, featuring solar panels, rainwater harvesting systems, and a sewage treatment plant, striving to achieve energy efficiency and eco-friendly living.
- Evolving real estate trends
- Co-working spaces, serviced apartments, luxury housing, and TOD
- Maturing market catering to diverse needs
- Sustainability as a significant factor
- Green buildings and energy-efficient homes
- Eco-friendly construction practices
RERA and Its Impact
Real estate regulatory frameworks have advanced to provide consumer protection and ensure fair play in the market. The implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), has played a crucial role in streamlining the industry and increasing transparency in property transactions.
RERA has helped infuse buyer confidence by protecting their interests, offering timely deliveries of projects, and promoting accountability among developers. It has significantly impacted Bengaluru’s real estate market, ensuring that developers are compliant and adhere to necessary guidelines and regulations while conducting business.
The post-RERA market has also seen investors being more discerning, seeking out reputed developers who adhere to deadlines and deliver quality offerings, thus promoting healthier competition between the players in the market.
One such reputed developer offering RERA-compliant projects is Brigade Group, known for delivering quality homes on time and establishing trust among homebuyers.
- Impact of RERA
- Increased transparency and consumer protection
- Infusing buyer confidence
- Promoting accountability among developers
- Discerning investors seeking reputed developers
- Healthier competition in the market
Conclusion
As we’ve seen through the insights provided by Ashwinder R Singh, Bengaluru’s real estate market holds great promise in terms of investment opportunities, backed by robust economic growth, infrastructure development, and a burgeoning demand for residential and commercial spaces.
While challenges will always persist in any dynamic market, Bengaluru has consistently demonstrated resilience and adaptability. Investors can take advantage of various growth opportunities spread across the city, benefiting from both rental returns and capital gains, thanks to the city’s thriving real estate scene.
To sum up, Bengaluru has the potential to become one of India’s leading real estate markets, catering to a wide range of investment preferences and requirements. It is undoubtedly one destination to keep an eye on for prospective investors looking to diversify their portfolios and reap the rewards of a promising property market.
| Real Estate Aspect | Details |
|---|---|
| Major Drivers of Growth | IT-driven economy, favorable government policies, infrastructure development, diverse industries, affordable housing demand |
| Investment Returns | Promising rental yields, steady property appreciation, capital gains potential in rapidly developing areas |
| Growth Hotspots | North Bengaluru, East Bengaluru, areas along the PRR |
| Emerging Trends | Co-working spaces, serviced apartments, luxury housing, TOD, green buildings, and energy-efficient homes |
| RERA Impact | Increased transparency, consumer protection, accountability among developers, healthier competition in the market |
