Bengaluru's realty sets a scorching pace

Bengaluru's realty market is witnessing unprecedented growth with a spate of projects ranging from high-end luxury layouts to affordable apartments, catering to NRIs, HNWIs and buyers from North India writes Rajesh Kulkarni.

The Bengaluru property market is on a roll, and for all the right reasons. A rising number of High Net-Worth Individuals (HNWIs), a rapid pace of urbanization, the influx of global lifestyle trends and the growth of service industries in areas such as information technology and financial services, have all combined to ensure that the city’s realty market is growing at a fast clip.

To cite a example, in 2014 alone Bengaluru city saw the launch of approx 35 luxury residential projects offering 6,000 units, as compared to just 18 projects offering a total of 4200 units in the preceding year. 2012 was even more dismal witnessing the launch of just 17 such projects offering a total of 3,800 units for sale.

So what are the precise reasons responsible for such a drastic turnaround that has resulted in areas like Frazer Town, Lalbaugh road, Koramangala, Whitefield, Sanjaynagar and Hebbal, seeing a huge influx of projects in the luxury category.

"The fast growth of service industries like financial services and IT has propelled several middle-class individuals into the HNWI bracket with higher levels of disposable income," says Om Ahuja, CEO – Residential Services, JLL India, a leading realty advisory firm. "Further, a growing interest fuelled by NRI buyers looking to invest in luxury projects here has also encouraged developers to launch such projects with exceptional facilities on offer," he adds.


Focus on Absolute Luxury:

According to Ahuja, with most buyers insisting on quality products, developers have been forced to launch luxury projects in tandem with global developers and world-renowned architects. "Developers are now trying out a variety of new products in the luxury segment to attract discerning buyers," he affirms. Adding, "These also include US and Singapore-styled apartment projects and homes that are quite similar to plush hotels and branded luxury residences."
 
This in turn has upped the luxury quotient of upcoming projects in this category with developers loading their projects with exclusive amenities like golf greens, international schools, swimming pools, shopping centers, indoor arenas, piped gas, concierge desks, conference rooms and ultra-modern gymnasiums to name a few.
 
Corporate Impact:

Courtesy its multi-cultural environment, talented workforce, enhanced connectivity and business friendly climate, Bengaluru in recent years has also acted as a magnet for large corporations looking to set up a base here. As per industry estimates, the city absorbed 13.77 million sq ft of office properties last year.

Prime examples include reputed companies like Cargill, Continental, Daimler, Capgemini, Flipkart, KPMG and Honeywell who have all either set up base in the city or are in the process of expanding their operations here.  The increase in the number of employment opportunities has had a direct impact on the demand for quality residential options, with the cumulative end user driven demand for homes here now touching an estimated 4,50,000 units.

Given the positive outlook, Bengaluru's realty market has also witnessed big-ticket private equity inflows pegged at approx INR 2, 350cr in 2014. A trend led by PE majors like the Mumbai-based ASK group and Reliance Capital. While the former has pumped in about INR250cr in the last two years and is scouting the market for viable opportunities to invest further, Reliance Capital has invested approx INR200cr over two years in the city's property sector.
 
According to leading industry experts, areas in the north of the city with its proximity to the Bengaluru International airport and well-developed infrastructure facilities is grabbing the maximum eyeballs as a preferred destination for both residential and commercial realty development.
      
Consequently this belt is also witnessing a hectic pace of development in areas like education with reputed chains like the Vishweshwaraya Technical University developing an Advanced Technical University here spread on a 300-acre campus, in addition to several leading international schools and engineering colleges in the area.

A spate of infra projects in this area have also eased connectivity issues like the recently opened Hebbal flyover to the Kempegowda international airport 7) which has shortened the commute to a mere 20 minutes. Other key ongoing projects include the 116-km long Peripheral Ring Road (PRR), which will circumnavigate the city and connect the Outer Ring Road with north Bengaluru, enhancing connectivity between the state highways and other major national highways.

Prime Upcoming Projects:

With demand on the increase the city is dotted with several upcoming projects by a slew of leading developers that include the likes of Mahindra Lifespaces, Prestige Group, RMZ Builders, Nitesh Estates and Purvankara among others.

Mahindra Wind Chimes at Bannerghatta, a project by Mahindra Lifespaces is an exclusive residential tower property offering a choice between spacious 3, 3.5 and 4BHK apartments from 1,800-3,000 sqft, priced from INR 1.5cr onwards.   Spread across 6 acres, the project includes a clutch of modern amenities like a clubhouse, miniplex, swimming pool, squash and badminton court, kids play area and a spa & sauna complemented by lavish interiors. Located in close proximity to landmarks like the BDA 80 feet road and Bannerghatta main road, the project is scheduled for completion around December 2018.

Woodland Park by the city-based Prestige Group is situated near ITC Limited at Cooke's town. With a layout comprising of 166 units housed within twin towers built on 1.6 acres of landscaped land, Woodland Park features 2, 3 and 3.5BHK apartments from 1383-2094 sqft, priced from INR 1.39cr onwards. The list of ample amenities features a landscaped garden, basketball court, clubhouse, intercom, swimming pool, ample car parking, tennis court, rain water harvesting facilities and a modern gymnasium. The project is situated close to ITC Colony Road and Wheeler road flyover and is slated for completion around December 2018.

Purvankara's City of Gold project, next to Purva Highland on the Kanakapura road corridor, occupies a lavish 20 acres of a 75-acre mixed-use project that will include: commercial space, terraced apartments, Spanish-styled villas, compact condominiums, shops, shopping malls and boutiques.  On offer here is a choice between 2 and 3BHK terraced apartments (Purva Scarlet terraces) housed in a 20-storeyed tower, ranging from1350-1850 sqft, priced from INR 4250 psf.

Buyers looking for a larger space can check out their Spanish Villa layout that features a configuration of 4 and 5BHK villas ranging from 2150-3,600 sqft. Prices for the villas begin from approx INR 5850 psf with each unit consisting of parking plus three storeys. The third residential option available here features Executive Suites (Purva bird of Paradise) offering single and twin bed condominiums with an area of 625-900 sq ft, priced from INR 4250-4750 psf, with an additional floor rise of about INR 20 psf, per floor.  

Presently in its pre-launch stage, this prestigious project enjoys easy connectivity to several arterial roads of the city including: Tumkur road, Bellary road, Old Madras road, Hosur road, Mysore road and Kanakapura Road to name a few.

RMZ Latitude, by RMZ Builders at Hebbel village is yet another option in the super spacious category offering exclusive 4BHK apartments, priced from INR 4.37cr onwards, that feature a 620sqft living room among other unique features.  Set in a 17-storeyed residential tower in a complex surrounded by tree-lined walkways, pebbled pathways and criss-cross manicured lawns, this under-construction project is located close to landmarks like the reputed Columbia Asia hospital and Presidency College. 

Prestige Group's Pine Wood is one of the finest upcoming residential projects at Kormangala, a preferred location in the heart of the city, close to several IT hubs and recreational zones. This project is spread across 2.56 acres of land and features three towers (Gr+14 floors) with two basements, hosting a total of 256 apartments. Choice of units available here include 2,2.5,3 & 4BHK apartments ranging from 1249-2502 sq ft, priced from INR 1.31cr onwards with a floor rise of INR 25 PSF.

Scheduled for completion around March 2019, Pine Wood will include modern amenities like a basketball court, clubhouse, gymnasium, swimming pool, ran water harvesting facility, community hall, intercom system and a cafeteria among others. Internal amenities being offered here include: imported marble in the foyer, living and dining area, engineered laminated wooden flooring in all bedrooms, geysers in all toilets (except the maid's) and anti-skid ceramic tiles in all balconies.
 
Outstation Buyers In the fray:

With the city offering a choice of projects to suit all budgets and tastes, leading city-based developers like Puravankara and the Brigade group are now generating about 8-10 percent of their sales from buyers based in other metros like Mumbai, NCR, Delhi and even Kolkata. "This is a new trend for the Bengaluru market," says Kapil Srinivasan, a city-based realty consultant.

"Until a few years ago, the city generated property sales only from neighboring cities like Chennai, Trivandrum and Kochi. We seldom got inquiries from buyers based in North India. These days it’s a different story altogether with buyers from other cities up North and even NRIs showing a keen interest in buying property here."  

According to Srinivasan, while Bengaluru's increasing bouquet of realty projects and improved infrastructure have played a key role in attracting buyers from non-traditional markets, it’s the lower property rates here vis-a-vis  other metros that have been the real game changer.

"With the average rate for a residential property in the range of approx INR 4-5000psf, the city presents a viable and very affordable option for buyers and investors alike as compared to a metro like Mumbai where it's almost impossible to find a home at this rate within the city limits," he opines.

However in terms of sales volume while Mumbai still topped the list with 68,000 residential units sold in 2014, Bengaluru came a close second with 55,000 units. On the flip side, Mumbai also enjoyed the dubious distinction of having the highest number of unsold units in the country, pegged at 200,000 units as of December last year.

(all prices mentioned above are purely indicative.)