An overview of Bangalore residential real estate market

Author: Sachin Gupta | Find me on Twitter Follow @sach_gupta

When one thinks of Bangalore, the first picture that comes to mind is beautiful weather and the hub of information technology companies. Since past few decades, among all cities in India, Bangalore has grown the fastest. The driving industry in Bangalore is IT and ITES and this has had a positive impact on the supporting industries as well.  The revenues from IT-BPO sector has grown substantially over the last 5 years which has resulted in increased job opportunities for engineering talent from across the country.

India’s technology and BPM sector (including hardware) is estimated to have generated USD108 billion in revenue during FY13 compared to USD100.9 billion in FY12, implying a growth rate of 7.4 per cent. The IT-BPM sector in India is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020. The sector increased at a CAGR of 25 per cent over 2000–13. This whole economic activity generates employment opportunities and at the same time enables growth opportunities for other industries.

Real Estate in Bangalore has grown on account of job creation by IT/ITES industry. Multi-cultural population with good social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure has presented real estate developers with the opportunity to develop quality real estate projects, particularly in the residential space.

Number of ongoing projects in respective regions

Approximately 672 residential projects till 2013 (high-end, mid segment, and affordable segment) are under various stages of construction in Bangalore. 

• Here is a snapshot:

South Bangalore (Banashankari, Electronic City, Hosur Road, Gottigere, Chanda Pur, Bannerghatta Road, JP Nagar, Koramangala, Vijayanagar, BTM Layout, Kudlu Gate, Jayanagar, Bommanahalli, ChandaPura, Attibele, Kanakapura Road, Begur Road, Anekal, AnjanaPura, Ananth Nagar) – 168 residential projects out of which approximately 26 projects offer villas/row houses.

East Bangalore (Haralur, Sarjapur Road, Horamavu, Whitefield, HSR Layout, Sarjapur, Hoodi, Hosa Road, ITPL, CV Raman Nagar, Nagavara, Haralur Road, Banasvadi, Marathahalli, Mahadevapura, Old Airport Road, Indira Nagar, Bellandur, Brooke Field, Basava Nagar, Amrutahalli, Varthur, Outer Ring Rd, Old Madras Road, Ramamurthi Nagar, Kadugodi, Panathur Village, Doddanakkundi, TC Palya) – 255 residential project under various stages of construction out of which 55 are villas/ row houses project.

North Bangalore (Devanahalli, Doddaballapur Road, Yeshwanthpur, Malleswaram, Hebbal, Hebbal Flyover, Jakkur, Jalahalli, KR Puram, RT Nagar, Yelahanka, Airport Road, Bellary Road, HBR Layout, Hennur, Hennur Road, Rajaji Nagar, Sahakar Nagar, RMV Extension, Thanisandra, Tumkur Road, Vidyaranyapura) – 149 residential real estate projects under various stages of construction out of which 31 are villas / row houses project.

West Bangalore (Mysore Road, Rajarajeshwari Nagar, Kengeri, Sanjay Nagar, Magadi Road, Uttarahalli, Nagarbhavi) – 24 residential real estate projects under various stages of construction out of which 3 are villas / row houses project.

Other areas including Bangalore central – 76 residential real estate projects under various stages of construction out of which 19 are villas / row houses project.

Total number of apartments in each respective region till 2013

1.87 Lacs of housing units including the high-end, mid segment, and affordable segment are in the process of construction.

Types of apartments

Out of the total of 672 residential projects under various stages of construction, the proportion of projects offering 1BHK, 2BHK, 3BHK housing units are given below in a detailed graph. The graph signifies that more than 70% of all projects offer 2BHK, 3BHK housing units with about 10% of projects offering 1BHK, 5BHK units.

Housing Prices trend

Prices in Bangalore central have been stable over the last few quarters. However, in micro markets such as Madivala, Banaswadi , Jagjeevan Ram Nagar, Yeswanthapura, Mathikhere, BTM Layout, Sultanpalya, Lingarajpura, BCC Layout prices have fallen in last 2 quarters.

Recently launched projects

Following residential projects have been launched in the Oct-dec 2013 quarter.

Skylark Ithaca (Phase-I), SJR Blue Waters, Patel Smondo 4.0, Brigade Cosmopolis, Shriram Chirping Woods, Monarch Aqua, Sumadhura Silver Ripples, Prabhavati Daffodils, Goyal Orchid Woods, Nitesh British Columbia, Golden Panorama, Prestige Ivy Terraces, Adarsh Premia, Purva Skydale, Century Ethos, Ajmera Stonepark, Sterling Ascentia, Prestige Jade Pavillion, Mahaveer Amaze, Bren Paddington, Saroj Symphony, Concorde Epitome, Purvankara Purva Sunflower, Concorde Tech Turf, Mahaveer Oleander, Atlantis Liberty Square, Salarpuria Clarinet, Arge Helios, Zonasha Vista, Pranjape Wind Fields, Samruddhi North Square, Concorde Wind Rush, Shriram Chirping Woods, Radiant Elitaire, Salarpuria Aspire, Living Walls Another Sky, Pushpam Woods, JR Nexus, Eternity Ecstasy, Sarvana Esplanade, Vineyard Chrystolite, Nakshatra Celestia, Surya Shakti 80 Trees, Sipani Classic, Radiant Silver Oak, Chaitanya Sharan.

Data Source: In-house data collection, and National Housing Bank for price trends

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