Ravi Benjamin Indian Real Estate Update: North Bangalore real estate thrives on IT sector g...

Ravi Benjamin Indian Real Estate Update: North Bangalore real estate thrives on IT sector g...: North Bangalore real estate thrives on IT sector growth Article The growth in North Bangalore thrives on IT development as a lar...

North Bangalore real estate thrives on IT sector growth

North Bangalore real estate thrives on IT sector growth

Article

The growth in North Bangalore thrives on IT development as a large chunk of the buyers are the IT professionals working in the localities here. As compared to other parts of Bangalore, localities part of the northern area like Electronic City, Hennur road, Hebbal, Bannerghatta road, BTM Layout, among others are witness to rising demand and capital values too.

According to local realtor M K Khan, "The eastern area of Bangalore is becoming chaotic, and hence all the market has shifted to the northern part as the investors see it as an ideal destination for IT firms," He also added that more action is there in residential space too in northern part.

Many IT firms and companies like Philips and NXP semiconductors have their hold there. Companies like IBM and Cognizant have plans to expand there within 5 years or more. Prakash from Anugreh Estates said that initially the developers here were targeting the mid-income groups but as the buyer interest has evolved with rise in disposable income, villas and high-end apartments too are in demand now.

Prominent developers in this area include Century Real Estate, Sobha Developers, Godrej Properties, among others. The capital value of apartments in this part of Bangalore ranges from 4,000 to 6,000 per sq ft.

In addition, other factors propelling demand here are connectivity to the Airport, city centre and NH-7. Government initiatives and the retail background also play an important role in improving the future prospects of north Bangalore.

Mohammad from Elahi Builders pointed out that localities like Hebbal and Devanahalli in North Bangalore will soon reflect the growth that Whitefield has seen.

Bangalore costliest Indian city to live in: Survey

http://articles.economictimes.indiatimes.com/2012-03-29/news/31254521_1_mumbai-and-delhi-bangalore-s-cpi-cities

http://www.moneycontrol.com/news/real-estate/emkay-upbeatbangalore-real-estate_651582.html

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http://www.articleclick.com/Article/Bangalore-Hottest-Real-Estate-Destination-across-the-Country/1892058

Domestic buying sees a rise in real estate market

Bangalore's real estate market, which once saw non-resident Indians (NRIs) lapping up almost 40 per cent of the total apartment units sold, has seen a change now, according to industry insiders.

With the increasing number of domestic buyers investing in the realty sector now, the NRIs share in total sales of apartment units has dropped to about 20 per cent in the recent times.

Bangalore's market has been attracting investments from the expat Indian population, mostly Kannadigas, residing in the U.S., West Asia, Singapore, Australia and New Zealand.

Approximately 30,000 apartment units are sold in Bangalore annually now. In fact, 2007 recorded the highest number of units ever sold annually at 40,000 units.

“The percentage of local buyers investing in apartment units has gone up from 60 per cent to almost 80 per cent now with increasing disposable income with families as well as accessibility to housing loan,” Shankar Sastri, Secretary of Confederation of Real Estate Developers' Associations of India (CREDAI), Bangalore, told The Hindu.

Bangalore as a real estate market, he said, always interested the NRIs so much so that many developers had representative offices in the U.S., West Asia and Singapore even two decades ago.

Besides, the realty market here had done well in the last two years due to stability, pricing, safety, said R. Nagaraj Reddy, president-elect of CREDAI, Bangalore.

He added that Bangalore has always remained a “preferred city” among those wishing to invest in housing sector.

This trend of change in the profile of apartment buyers is being seen in housing applications too, says State Bank of India Chief General Manager (Bangalore circle) Ashwini Mehra.

“There are more number of applications from domestic buyers now though there is a continued interest from NRIs residing in the U.S. and West Asia. Nearly 20 per cent of the total housing loan disbursement has gone to NRIs,” he said and added that nearly 80 per cent of the applications in the NRI category came from those residing in the U.S. and West Asia.

T. Venkatesh Babu, a strategist with a leading Bangalore-based real estate company, said that the number of NRI buyers may have come down, as those regions are facing economic uncertainty.

“People tend to conserve cash in such situations and may not like to make high value housing investment,” he said. Also, the speculative buying in Bangalore-market has come down significantly after the 2008-2009 crash, he said.

Interestingly, a large number of domestic purchasers of apartments in Bangalore are from Delhi, Bihar, Uttar Pradesh, and partly from Hyderabad and Chennai. “Most housing loan applicants are young service sector professionals, including those in IT and ITES, who may have come to work here,” Mr. Mehra said.

He also acknowledged that Bangalore real estate sector may have benefited from the Telangana crisis with some spill-over coming here, though a major share has gone to Visakhapatnam.

Realty sector returns in India at an all-time high

http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/business/2012/March/business_March183.xml&section=business