This one time we’re not referring to the iconic superhero, but the prices of homes in the city of Bangalore. Even though real estate markets across the country are getting hammered because of the economic slowdown, rising interest rates, delays in project approvals and piling unsold inventory, Bangalore seems to be totally unaffected by this dark streak and has maintained and increased its prices of property(Much to the dismay of current and to-be wishful Bangalore property purchasers).
The reasons why Bangalore is performing better than other Indian markets are the more reasonable price spikes and better execution of projects. Statistics show us that while residential purchase witnessed a slowdown across major cities, Bangalore has escaped relatively unhurt, and witnessed a drop by just 18 percent. Even within Bangalore, the best performing areas in the city for the residential sector were areas in North Bangalore. These locations saw the highest demand and appreciation during the year. The improved infrastructure in this region, its proximity to Bangalore International Airport Ltd (BIAL) and overall enhanced connectivity helped North Bangalore become a much sought-after residential destination. Because of the infrastructure initiatives in various stages of construction and planning there, including the proposed high-speed rail link, the Hebbal-Yelahanka expressway, the elevated expressway to BIAL and the advent of the monorail, North Bangalore was one of the safest and most lucrative residential property investment bets of 2012. North Bangalore will continue to grow thanks to its massive potential for capital appreciation. Other top emerging destinations through 2012 were Tumkur Road, Vijayanagar and Magadi Road in West Bangalore, with capital value appreciation to around 12-15 percent. This region saw stable demand because of the developing metro line, which will provide enhanced connectivity. Yet another area to start edging its way into the limelight was Kanakapura Road, which has begun seeing the benefits of metro connectivity, the establishment of the NICE Road (the Bangalore-Mysore Infrastructure corridor), the availability of Cauvery water and its affordable price points. For retailers, mall developers and retail space investors, North and East Bangalore are definitely the areas to watch out for. The rapidly developing infrastructure and expanding residential catchments in these locations are reasons of vastly increased retail activity over mid to long term basis. Our sincere advice to small investors is to go for residential projects in which units are priced between Rs 80 lakh and Rs 1 crore as three-BHK units are going to be the fastest-moving and appreciating products in 2013 and beyond.
So, at the moment and in the near future, the stars of fortune have decided to keep shining in Bangalore’s favour. How long this win for Bangalore will last is a question of time and economic factors. The future may hold its ups and downs for Bangalore, but right now it’s just up and more ups