Want a home in South or East Bengaluru? Pay 9% more this year
- Average hike of 9% in East and 6% in South of Bengaluru
- The metro construction work in South Bengaluru is also pushing the property rates.
- 69% of the total units launched till now are located in East and South of the city.
Though the sales of residential property in Bengaluru has been sluggish in the recent part, yet due to high demand from IT sector population few micro marketers have been able to gain much despite the odds. However, the property rates in the east and south of the city have risen more as compared to the other parts of the city due to increasing demand of 2-3 BHK units in high-end housing projects.
A capital value appreciation analysis of some leading apartments shows an average hike of 9% in East and 6% in South of Bengaluru and a 3% hike in West Bengaluru. The analysis shows that apart from East, the real estate price increase is equal to or lower than India's consumer inflation rate meaning property yields are no more attracting the investors.
Demands for real estate is highly concentrated in the East that has Whitefield, Yemalur, Varthur, Hoodi Circle and few other locations; and in South that has Electronic City, JP Nagar, Bannerghatta Road and few more locations. In 2015, the residential property sale value in Whitefield was ₹6,900 per sqft, and at present, it is about ₹7,500 per sqft which shows an appreciation of 9% approximately. Similarly, a project near Koramangala rated ₹10,000 per sqft last year is now rated ₹12,000 per sqft.
The reasons behind this can be attributed to multiple factors like units launched are within the preferred range of budget, location of employment hub in Whitefield and Outer Ring Road, and also the proposed metro connection. The metro construction work in South Bengaluru is also pushing the property rates in the region.
According to data by Knight Frank, an independent property consultancy, of the 24,281 new units launched in the first half of the year, 69% or 16,754 units are located in East and South of the city. Last year, this number was 54% for the same period.