Bengaluru property experiencing positive flux across sector

Indiaproperty.com

The Garden City’ or the ‘Silicon Valley’ as it’s popularly known has shown tremendous strides over the years. The city population has increased at an annual rate of 3.9% over last two decades. If one examines growth of any developed city, real estate capital and rental values are primarily dependent on employment generation and infrastructure development activities.

It houses the maximum number of IT, ITeS, Bio-technology and aerospace companies in India, directly impacting the commercial and residential real estate growth in the city. One of the primary demand drivers for residential real estate sector is over 650,000 professionals employed in IT sector of Bengaluru. What is also unique is that this pool also feeds in to the buyer segment of other Tier 1 & 2 cities due to its migrant composition.

Bengaluru is experiencing a positive flux across sectors, with evident development in – both public and private infrastructure especially road and transport. The city comprises of a strong salaried population resulting in the real estate market dynamics to largely act as per the consumer demand rather than speculation.

The improvement in road network through Outer Ring Road (ORR), Nandi Infrastructure Corridor Enterprises (NICE) Ring Road, Hosur Road, and upcoming Peripheral Ring Road has changed the dynamics of the city. Also, the existing and the proposed Metro Rail and other proposed projects like the Monorail and High Speed Rail Link are expected to ease connectivity and reduce travel time.

Bengaluru property market has primarily been an end user driven market. End users constitute around 75% share of the market today, one of the highest in developed markets of India. One of the prime reasons for the shift is ever increasing job opportunities, leading to an increase in the rate of migration and diverse demography.

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