Bengaluru is the capital of the southern state of Karnataka and is colloquially known as India’s IT capital. Currently one of India’s fastest growing IT hubs, the city is home to nearly 10,000 start-ups along with global and national tech companies. It contributes up to 34 percent to the state gross domestic product (GDP). The burgeoning services sector, strong international and regional connectivity, favourable socio-economic conditions and salubrious climate have made Bengaluru one of the top residential centres in India. The city was ranked first on the Ease of Living Index (2020). Also, as per our research, Bengaluru takes the lead in healthcare infrastructure and has the highest number of hospital beds (3.6) per 1,000 population compared to other metros. The city being preeminent in the growth of IT sector in India, presents a sustainable case for commercial and residential markets in India.
In Bengaluru, the central zone houses the central business district with many corporate offices, while the eastern and southern regions have emerged as hubs for the services and IT sectors. These micro markets also have dense residential development dominated by apartment and villa formats. As these markets are reaching maturation, the northern region has been seeing noteworthy development in recent years. The presence of an international airport and slew of infrastructure projects has made this region an attractive destination for businesses and workforce alike.
Also, as opposed to dense development near the city centre, northern micro markets hold large land banks. Hence, localities such as Devanhalli, Chikballapur, Yelahanka, Bagalur have emerged as preferred destinations amongst consumers and investors for the residential land segment. The development of Devanhalli Business Park, Information Technology Investment Region, peripheral ring road, amongst others, have only added to the attractiveness of these micro markets. On average, the northern region takes a handsome share of 35 percent in the overall residential land demand in Bengaluru.
Apart from the north, eastern Bengaluru has also garnered significant interest in the residential land segment. The robust road connectivity and presence of the IT sector has resulted in heightened interest and demand for plots in peripheral localities with land availability such as Hoskote, Malur and Avalahalli off Sarjapur Road. Also, localities on the western periphery, such as Nelamangala and Kurubarahalli along National Highway-48 (Bengaluru—Mumbai), have seen significant traction for residential plots.
Land takes significant share of 30 percent in the average annual residential sales in Bengaluru. The residential land is mainly preferred by the locals who are looking to invest in residential asset in the city. The flexibility to work from home in the IT sector has sustained the demand for residential land available in northern suburbs even during the pandemic, which is also visible the price trend. The land prices in Bengaluru in the residential sector recorded 1.2 times (13 percent) increased between 2018 and 2020. The price trend has seen a slow but steady growth in 2021 as well.
In recent years several incentives such as availability of premium FAR (maximum 0.6 times the original) in metro corridors and permissible promotion of residential plotted development projects post 40 percent completion have given an upward thrust to the stakeholders to enter into the plots segment in Bengaluru. Moreover, while approvals by way of the Bengaluru Development Authority (BDA) and Khatta system have induced consumer confidence, it is further buoyed by many branded developers who have entered the segment in recent years. While these policy changes to support the stakeholder interest are a step in the right direction, employment generation, infrastructure development, and connectivity are fundamental to residential real estate asset growth.
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
Related Posts
Gurugram residential plot prices continue to soar, grow by 15%.
Chennai residential land prices record double digit growth.
2022 ends on a high for India’s property market – demand up by 50% YoY in top cities.
India’s upwardly mobile ageing population, COVID-19 pandemic spur growth in nascent senior living segment.
Hyderabad emerges as a top realty hotspot in southern India.
24,000 residential units launched during Apr-Jun: Study.
