The unparalleled growth of Bangalore has spurted a
drastic change in the skyline of the City. Once known for its calm and quiet
streets, the City has grown to become a bustling metropolis, housing many
information technology and ancillary industries.
To cater to this, Bangalore has expanded at an exponential rate. With the presence of software giants coupled with cosmopolitanism, Bangalore has attracted citizens from across the world who have chosen to make it their home.
However, over the past two years, the real estate boom, which was thriving on the growth in the technology sector saw a sudden slowdown, leaving many developers and builders in a spot of bother.
According to a recent study by Knight Frank India, Bangalore used only a quarter of the 12 million square feet of office space on offer - the highest in India - from January to March.
The lull in the global economy and the IT sector saw the demand for real estate drop drastically. But developers believe the growth will now pick up because the IT industry has started to revive business with new projects.
In the next fiscal year, the demand for office space is expected to grow to a modest 8 to 10 million sq feet, leading to better prospects for buyers coming forward to buy residential spaces.
Premium pricing
Developers have tried to draw consumers to projects which are located mostly in the south-east and northern parts of Bangalore, targetting areas close to the technology industry’s hubs.
Places which were never on Bangalore’s map, have now become the focal points of the City’s growth. Residential projects in Sarjapur, Whitefield, Malleswaram, Devanahalli and many areas in between are being priced at a premium because they are located close to technology companies’ offices.
According to builders, 85 per cent to 90 per cent of property buyers in Bangalore live in the properties they buy. They don’t purchase property as an investment or for renting it out. Builders believe that their products ranging from Rs 25 lakh (affordable housing) to the premium class (Rs 1.5 crore and above) have all the possible traction to provide the people with what they desire.
Today, the only differentiation between any builder or developer is focus on soft skills like customer relations and better amenities. Previously considered luxuries like club houses and a swimming pool are a rule rather than a exception.
Other developers believe that the consumer is more driven by accessibility to amenities like schools and colleges or shopping malls, which shows that they want a ‘self-sustaining’ environment so that they can cut down on their travel time.
To cater to this, Bangalore has expanded at an exponential rate. With the presence of software giants coupled with cosmopolitanism, Bangalore has attracted citizens from across the world who have chosen to make it their home.
However, over the past two years, the real estate boom, which was thriving on the growth in the technology sector saw a sudden slowdown, leaving many developers and builders in a spot of bother.
According to a recent study by Knight Frank India, Bangalore used only a quarter of the 12 million square feet of office space on offer - the highest in India - from January to March.
The lull in the global economy and the IT sector saw the demand for real estate drop drastically. But developers believe the growth will now pick up because the IT industry has started to revive business with new projects.
In the next fiscal year, the demand for office space is expected to grow to a modest 8 to 10 million sq feet, leading to better prospects for buyers coming forward to buy residential spaces.
Premium pricing
Developers have tried to draw consumers to projects which are located mostly in the south-east and northern parts of Bangalore, targetting areas close to the technology industry’s hubs.
Places which were never on Bangalore’s map, have now become the focal points of the City’s growth. Residential projects in Sarjapur, Whitefield, Malleswaram, Devanahalli and many areas in between are being priced at a premium because they are located close to technology companies’ offices.
According to builders, 85 per cent to 90 per cent of property buyers in Bangalore live in the properties they buy. They don’t purchase property as an investment or for renting it out. Builders believe that their products ranging from Rs 25 lakh (affordable housing) to the premium class (Rs 1.5 crore and above) have all the possible traction to provide the people with what they desire.
Today, the only differentiation between any builder or developer is focus on soft skills like customer relations and better amenities. Previously considered luxuries like club houses and a swimming pool are a rule rather than a exception.
Other developers believe that the consumer is more driven by accessibility to amenities like schools and colleges or shopping malls, which shows that they want a ‘self-sustaining’ environment so that they can cut down on their travel time.
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