Demands in Bangalore West take a major hike

The increasing commercial demand in the vicinity of West Bangalore is asking the residential sector to grow and lead the city to a better place.
The Mumbai-Bangalore Industrial Corridor, Greater Peenya Industrial Area, proposed Peripheral Ring Road (PRR) Metro Rail connectivity, Dabaspet Industrial Area, integrated townships along the NICE corridor, all these factors make the west of the city an investment destination. The plots in Bangalore in this region is owned by automotive parts, manufacturing, electrical, electroplating, pharmaceutical, chemical, electronics, building materials, aerospace components, garments, castings, forgings, foundries, and scientific instruments industries.
The whole area is well connected to the plunged road built over Peenya international airport, in the Mysore road. It is also connected to NICE corridor as well as the metro rail network.The well established and renowned market of Yeshwanthpur having a micro market with healthcare, retail and other public infrastructure gives a major push to people to come and live here.
Shrinivas Rao, CEO of APAC, Vestian Global services stated that the major factors that increase the rates of property in Bangalore are the presence of economic complexes and industrial sectors with the perfect physical infrastructure and amazing connectivity with all public convenience nearby. It has been noted that after 2008 this western area of Bangalore was influenced by a major hike in IT and ITeS companies which came and set up their base here. These industrial areas included Kumbalgodu and Bidadi which resulted in their nearby localities like Kengeri to become a popular residential choice for those who are employed in this area or the vicinity. According to reports and databases, Kumbalgodu Industrial Area, Bidadi Industrial Area and Global village IT park, together holds a total number of 80,000 employees. Also, after the rapid metro connectivity in this region, it has become very easy for people to travel and save their working hours. With all these factors in hand, the fact that region is well connected to the NICE Road, Outer Ring Road and Tumkur Road gives the place an additional advantage to grow more property in Bangalore west.
Currently, 79854604-lake_6the development that is being done in this region comprises of apartment projects and plots in Bangalore West. The Kengari residential sectors incorporate a large scale of apartment projects and townships in the mid segment value people. It is thus expected that the annual residential sale growth in this region is 6-8 percent while the rental yeild will be 4 percent.

A good news for Bangalore real estate

Stop worrying more about investing in a building or a land or any property in Bangalore specially those which are close to lakebeds.
The properties owned by builders near these lakebeds were told not to construct their builders as the National Green Tribunal, in an passed order on May 2016 clearly increased the buffer zone of the lakebeds from 30 metres to 75 metres and announced that no construction will be done around the 75 metres zone of the lakebeds. However, now the BBMP has given out a sigh of happiness. They have clarified that those projects which recieved their contrsution approval before May 2016 can resume their construction. These will be only applicable to those who got licened before the NGT order arrived.

BBmp recently issued a circular on 30th March 2017 which came out with the green signal for the buiilders. Commissioner N Manjunath Prasad ordered that the NGT directive will be now not be applicable for site and properties which already secured their plan before the Green Court came out with their new orders and restrictions. This implementation sent to all eight zonal heads has brought out a relief to the real estate sector and is expected to grow the market as well with the increased rates in such locations.

Now the builders are excited and are offering new deals in their flats in Bangalore lakebeds. These areas are now more costlier than ever. The serenity of the lakebeds of Bangalore has always been an ideal place for all the segments of the society and is much desired specially by old people who plan on living their old age in a wonderful environment as same.
Not only flats, but some builders are now planning on moving to lake house projects. They are now applying for permissions for their beautiful projects from the NGT and are expecting great revenues for the real estate market.

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Approval of Bangalore properties to go online

To manage Bangalore’s reputation of the country’s famous IT Hub, the BBMP has come out with a new rule which will be in favor of the technology. To ease the builders who own and want to convert them into a building for residential or office use, the procedure for getting the plan approvals will be done online. This was cut straight to chase the builders won’t have to run to post to seek clarifications. For this work, new executive engineers will be assigned the work of approvals. They will collectively work with zonal town planning officers.
This will be done in lieu of the latest E-Khata system announced in the BBMP budget on Saturday which said to enable the citizens to upload all the required documents and to avail their khatas online itself. Apart from this, the property tax collection which needs to be done will be carried forward by the geographic information system (GIS) in a collection with the Indian Space Research Organisation, according to the chairman of BBMP standing committee, MK Gunashekar (finance and taxation).

A digital survey of the whole Bangalore real estate will be carried out which will include tech parks, malls, and other commercial establishments, as well as the residential market of Bangalore, imageswill be minutely undertaken to ensure accurate evaluation of property tax.

New residential projects in North Bangalore

With the high increase in commercial activity in North Banglore region, the demand for residential sector also gets affected. New residential projects are being launched in this area which comprises of both apartments and Luxuroy homes (villas).

Bengaluru provides flats for sale in affordabe prices. The development in this area offers residential spaces for all three budgets; premium, mid range and luxury. Areas like Thanisandra, Yelahanka Doddaballapur, location near airport offers mig segment housing to its buyrers whereas, for luxury living one has to look for available in and arond Hennur Road, Kogilu, and some parts of Thanisandra.
New flats for sale in Hebbal-Yelahanka stretch of Bellary Road, which includes Hebbal and RMV II Stage has luxury apartments in the price range of Rs 8,000-12,000 per sqft. The areas situated beyond Devanahalli till Doddaballapur is very popular as it comprises of a large variety of high-end villa projects and also, plot development projects. The price here ranges between Rs 6,800-12,000 per sqft accumuating an area range of 2,500-7000sqft.
Meanwhile, the plot development projects in this area ranges from Rs 2,150 to 4,000 per sqft. Plots as well as luxury flats in this region are mostly preffered by high net worth individuals and investors due to their ability to serve as good holiday or retirement second home options. Apartments towards Nandi Hills Road are looked at with a keen eye as they range between Rs 7,300-10,00 per sqft. Vijayoura has new flats for sale ranging between 4,500-5,050.

Increasing residential demand in the Silicon Valley of India, Whitefield

As it is known that there is a large workforce employed in the area of Whitefield, and preferring to live in the vicinity, is increasing up the demands for residential options here for the comfort of the employees.
Once known as a secluded area of Bangalore to the Silicon Valley of India, Whitefield’s story was shaped primarily by the IT Hub revolution that changed the sleepy landscape with Asia’s first tech park which rose up in 1994.
The excellent development that took place in Whitefield and the EPIP zone have seen over the years seems like a page of a fictional book with a perfect ending. Mammoth towers in glass and chrome stand tall amidst natural greenery which has been long preserved by the developers of these MNC acquiring most of the Bangalore properties especially in Whitefield. Many hitherto heavy manufacturing factories have given a big hand to making this a wonderful place with a lot of infrastructural possibilities and residential flats in Bangalore.
It is no wonder that after all these factors these localities in the vicinity of these ultra facilitated tech parks have largely begun to mushroom into elite gated communities of residential buildings. Villas the high priority choice by the people who want to live here and work in these high-end vicinity of business parks.
While the ITPB has singularly driven the demand for residential property options in its vicinity, the other tech parks and business parks in the EPIP zone too have drawn a high demand for housing options ranging from mid-segment apartments and high-end homes enclosed within well-appointed gated enclaves, to villas and plots.
A member of the committee, Jain has stated that Whitefield, Electronics City, and the EPIP zone was a major initiative taken by the government to create the place into something better which eventually turned out to be called as the Silicon Valley of India with a number of reputed Multi Nationals setting up their base here. This is also increased the demand for high-end flats and villas by the people who come here every year from all over the country to earn their lavish living.

Hyderabad, a new commercial destination

Hyderabad is now becoming the new investment destination for the commercial property developers already based in Bengaluru. This is the time when the city’s real estate market is on a revival mode after almost five years of political ups and downs in the city.
Well developed companies such as DivyaSree Developers, Embassy, Salarpuria Sattva, and RMZ Corp have successfully built or still are in the process of building a noticeable commercial portfolio in the city. This, along with Bengaluru, which is also a home to some of the largest IT companies in the world, including Microsoft, Oracle, and Uber. However, the rentals of these cities are still not as high as other cities and therefore the companies are keenly looking at this as a growth trajectory.
As it is mostly seen, the existing customers of the city will be now looking in other cities as it provides them with more options and a higher scale for a better business. This However will result in the same rental prices of Hyderabad commercial property as it is for Bengaluru. Mike Holland, the CEO of Embassy Office Parks said that it can be strongly seen that the Hyderabad infrastructure will grow immensely after the political turmoils in Bengaluru.

Where to buy your house in Bangalore?

Like every other place, Bangalore also hit itself hard with demonetisation. This deeply effected the realty sector which consequenced in the announcements on Akrama Sakrama Scheme, National Green Tribunal’s drive to reduce the lake beds in the city. However, this is now beginning to change with the initial dust of demonetisation finally settling down. With the Union Budget Announcement, which extended a big hand to support the affordable housing, the demands have increased yet again.

Bangalore is reported as the third largest hub for High Net Worth Individuals which increases the demands for luxury housing in the form of apartments or plots in Bangalore. As the southern and eastern zones of Bangalore are popular for their commercial complexes and workplaces, major residential demands are fed by these areas.

With a 4% increase of ready to move in demands, a data was collected about where should buy their properties according to the budget.

For those who wish to manage a housing within 40lakhs have a number of options to choose from sppecially in the IT hubs such as electronic city. 1bhk Flats falls the most popular under this category. Amonsgt married couples who choose to live in the city regarding work, opt for a 2bhk house in Electronic City, Whitefield or Bannerghatta Road.

The residential demand in these areas are the highest and always dominate the popularity charts with a perfect capture of 40% of the total demands.

Apart from this, the Bangalore real estate is not keeping the 3BHK Flats and private villas aside and are launching new apartments under the category of 60lakh to 1 crore in areas like Hennur which have large scale infrastructure, easy connect with outer ring road and the international airport. Apart from Hennur, Kanakpura Road and Hebbal are also set with their ready to move in flats to meet the expectations of investors who desire luxury laced with tranquility.

Now for those entrepreneurs who does not wish to compromise on their lavish living and royalty, Bangalore is providing them plots and private villas in the range of Rs 1 Crore- 2 crore in areas such as Sarjarpur Road and Arekere. These have recently turned out to be a royal investing for the rich entrepreneurs which are mostly HNIs.

Winkworth to open its office in Bangalore

Winkworth has announced that it will open its offices in Bangalore. The group has already signed a master franchising agreement in India.

Winkworth, a franchisor with the largest chain of real estate agents in London, has announced that it will open up offices in Bangalore. Continue reading

High Rise Apartments To Offer New Skyline To Bangalore

Bangalore now has more numbers of high rise apartments. They are providing a new skyline to the high-tech city.

BANGALORE: High rise apartments had become a necessity in Mumbai and other top cities where there is no sufficient space for development. Till recently, there weren’t many high rise apartments in Bangalore mainly because there was sufficient land for developing projects. Continue reading

Blackstone To Gain Huge Profit From Its JV With Embassy

Blackstone, one of the leading global private equity and investment firm, is set to amass a huge profit from its Joint Venture in Bangalore.
Realty investment in Bangalore gives a good reap to Blackstone

Realty investment in Bangalore gives a good reap to Blackstone.

Blackstone has, joining hands with Bangalore– centered real estate firm Embassy Property Developments, planned to develop a luxury-oriented residential project. The Blackstone- Embassy group will jointly develop 467 housing units; each unit priced between Rs.3 to Rs. 10 Cr, in the project.

Blackstone expects to gain around Rs.210 Cr from their JV. This is their first big investment in Indian real estate market.  In 2011 the global private equity major invested in Embassy Lakeside Terraces which is an ultra-luxury villa project. From their investment in the project, Blackstone is expected to gain around Rs.210 Cr which represents around 28% of the absolute profit. Continue reading

Koramangala In Bangalore Turns Better Home Destination

Koramangala, lying in the South eastern parts of Bangalore, is expected to offer higher returns to the investors. It has become one of the most sought after residential areas in the Bangalore Metropolitan Region (BMR).
Koramangala in Bangalore has recently become a hot home destination.

Koramangala in Bangalore has recently become a hot home -destination.

Guaranteeing higher returns to the investors, Koramangala has become one of the hotter real estate destinations in India. The large number of upcoming ultra-luxury residential projects, commercial malls and posh villas show how fast the area develops and becomes a better home- destination.

While speaking to Shweta Rao of Economic Times, Mr. Gaurav Pandey, Vice-President of PropEquity Research & Consulting, told that “having close proximity to many established commercial hubs in the Central, East and Southern regions of Bangalore, Koramangala has evolved as a premium residential market.” Continue reading

Embassy Group To Raise Rs.500 Cr Along With JP Morgan

Bangalore-centered Embassy Group has entered into talks with JP Morgan, a global financial services group, for raising a real estate fund of Rs.500 Cr.
Embassy Group will invest Rs.500 Cr in Bangalore realty along with JP Morgan.

Embassy Group will invest Rs.500 Cr in Bangalore realty along with JP Morgan.

Embassy Group has entered into talks with the global financial services group for raising a fund for real estate development. The Indian firm plans to invest the fund of Rs.500 Cr into two real estate projects in Bangalore.

Embassy Property Developments plans to develop a top-end villa project and another residential project with IT campus. They have the plan to develop the projects on the Bangalore – Bellary Road.

Embassy Group had recently sealed a real estate transaction with Blackstone, a global private equity firm. This real estate transaction is considered as the biggest commercial transaction of India.

However the CMD of Embassy Group Mr. Jitu Virwani kept his lips closed when asked about their talks with the financial services firm. Mr. Yesh Nadkarni of JP Morgan too declined to comment on the ongoing talks. He told the media persons that as a matter of policy he could not comment on the issue. Continue reading

Bangalore Sees Lower Office Space Absorption as IT Demand Falls

Compared to 2011, the office space absorption has fallen in Bangalore. Experts opine that the situation was the result of weaker demand from the IT and ITeS sectors.
Office space absorption in Bangalore fell due to the lower demand from IT and ITeS sectors.

Office space absorption in Bangalore fell due to the lower demand from IT and ITeS sectors.

Real estate experts said that the office space absorption in Bangalore has been dropped as the IT (Information Technology) and ITeS (IT enabled Services) did not raise much demand. The reports show that the office space absorption has dropped by 24% last year.

Cushman & Wakefield, a global real estate consultancy, reported that in 2012 nearly 7.3 million sq. ft. of office space was absorbed. This rate of absorption is very lower to the 9.59 million sq. ft. of 2011. If the IT and ITeS sectors had shared nearly three fourth of the total supply in 2011, in 2012 their absorption is just above two fourth of total supply. Continue reading

Real Estate Investment: Tier 2 Cities More Profitable

Real estate investors of India prefer to have real estate investment in tier two cities now. These developing cities offer higher returns for the real estate investors.
real estate investment in tier 2 cities

Real estate investment in tier 2 cities is more profitable as it offers higher returns.

The Tier two cities are more preferred by real estate investors now. These cities are noted for their faster development and this is the main factor that attracts the Indian real estate investors to these cities.

Real estate investors’ traditional approach to bigger cities such as Delhi and Mumbai shifts as they remain incapable of delivering higher returns to them. On the other hand tier two cities are emerging as better real estate destinations.

The cities with better job- opportunities are all the more preferred real estate investment destinations. Higher population inflow to the small cities like Pune and Gurgaon prompts the builders to increase the supply.

With the growth of population the commercial needs improve and so does the demand for commercial spaces. These cities better offer chances for business growth as well. All these factors have pushed up the real estate prices as there is an increased demand.

Real estate investment not in developed cities

Developed cities do not support Real estate investment as it offers only lower returns.

Leading real estate consultancy firm Jones Lang LaSalle India (JLL) reported that the cities like Bangalore and Chennai will grow along with the expansion of IT centers in the cities. The real estate consultancy firm highlighted the expansion plan of Wipro.

Wipro has recently disclosed their plan of expansion. The firm plans to expand their existing Bangalore headquarters and campus which at present has the capacity to hold 31,000 people. Another 25 lakh sq. ft. of area will be added to the current Wipro headquarters.

IT expansion is taking place in Hyderabad and Chennai as well. These areas’ growth will be dependent on the IT expansion. JLL India’s CEO Om Ahuja opined that the real estate prices in these cities will be more dynamic than in other cities. He added that trends of real estate supply will be different in these areas.

All these features tell the real estate investors to tap new and emerging markets. They can reap sizeable returns from these cities and so these cities remain hotter places to have real estate investment. In short prime real estate investments in tier 2 cities are easier way to become rich now.

Blackstone Sets Its Luring Eye On Vrindavan Tech Village

Private equity major Blackstone has entered into final talks to buy Vrindavan Tech Village. The private equity firm expects to fix the deal for Vrindavan Tech Village, Bangalore for Rs.900 Cr.
Vrindavan Tech Village

Vrindavan Tech Village: On the verge to be bought by Blackstone.

Blackstone, a leading private equity Group, is in its final talks with the authorities of Vrindavan Tech Village. Bangalore-based Vrindavan Tech Village is one of the largest IT parks of the city. The deal is said to be fixed at an amount of nearly Rs.900 Cr.

The Private equity biggie has hit the news headlines with its dealings with many real estate developers. Blackstone recently had business-deals with DLF.  Last year, it acquired DLF’s IT SEZ in Pune by paying Rs.810 Cr. Continue reading

Bangalore Real Estate Market: Prone To Unfair Measures

Bangalore real estate market is prone to many unfair and unjust means and ways. The situation is mainly due to the presence of unregistered real estate agents.
Bangalore real estate market

Bangalore real estate market is said to be in the hands of unregistered real estate agents. They play keen role in the fate of Bangalore real estate market.

Bangalore real estate market has been experiencing a boom despite the sluggishness existed in the country. Yet the real estate boom has led to many unjust means and ways in the city.

Looking at the way how the homes are rented, bought and sold, one can read how the Bangalore real estate market booms. Due to high inflow of middle-class and upper-middle class job seekers to Bangalore, property prices have shot up. Continue reading

ORR Bangalore Offers Better Odds To Comm. Real Estate

Outer Ring Road (ORR Bangalore) offers better odds for Bangalore real estate market. Lang LaSalle India reported that Outer ring road is the best performing commercial area in Bangalore.
ORR Bangalore is one of the best commercial real estate area.

ORR Bangalore (Outer ring road)turns up as one of the best commercial real estate area.

The latest report of Jones Lang LaSalle India (JLL) revealed that ORR Bangalore is the best performing commercial area. The JLL report specially highlighted the growing importance of K. R. Puram – Marathahalli – Sarjapur Road stretch.

According to the recent studies by JLL the ORR Bangalore has an increased growth. This area has become one of the most performing commercial areas in Bangalore. Whitefield also is said to be included in the best performing commercial areas in Bangalore metropolitan. Continue reading

Real Estate Chennai Grows Faster Than Bangalore

Recent trends in Chennai real estate show that it will stand with Bangalore real estate. How far it will take place? Following comparative analysis will tell you how far.

chennai real estate seems to be in safer hands

Chennai Real Estate Seems to Be in Safer Hands. ( image source )

Chennai and Bangalore are two prominent South Indian cities which generate new business. Both the cities have witnessed a higher level of growth in the recent past yet Chennai real estate stands little higher.

Real estate sector in both these cities are growing very fast. Of course Bangalore might stand steps ahead regarding the maturity aspect. Market growth of Bangalore which preceded that of Chennai can be counted as the reason behind this. Continue reading

Commercial Real Estate Office Space Demand Regains Pace

Commercial_Real-Estate

Commercial_Real-Estate

Demand for space in commercial real estate sector is reviving after the earlier setbacks in the primary quarters of the year 2012.  Seven prominent commercial hubs of India showed a greater pace of growth in the third quarter of 2012.  The third quarter which longs from July-to-September quarter, witnessed an A-Grade office space absorption by the major commercial real estate hubs on India. Continue reading

Real Estate Fails to Tackle Surging Housing Units Demand

Surging Housing Shortage of India.

Surging Housing Shortage of India.

Continued population boom in India leads to a situation where residential units or space remains insufficient for the people. According to Cushman and Wakefield all major cities of India are in high need of around 2.1 million new housing units to meet the increased demand. Real estate sector has to come up with new residential projects to solve out this great menace. Real estate has to play a vital role. Continue reading

Growing Service Sector Enhances Commercial Real Estate

Commercial Sector Boom

Commercial Sector Booms with Service Sector Growth

Growing service sector of India drive the demand for commercial real estate. Real estate research firms reported that Service sector of India showed a greater pace of growth rate of 8.5%. This will result in the increased demand for more commercial real estate space.  In 2011 service sector occupied 70 % of office space and this is likely to be increased this year. Continue reading

Reliance PMS Launches Real Estate Oriented Fund

Reliance Capital prepares to launch its maiden real estate focused fund of र 1,000 crore by the end of the year 2012. Reliance Capital is owned by Anil Dhirubhai Ambani (ADA) Group. This maiden launch of Reliance Capital in the realty industry will be done under the surveillance of Reliance Portfolio Management Services (PMS). The new fund will aim at constructing residential properties.  The investment will be concentrated in the cities like Pune, Chennai, Bangalore, Mumbai and Delhi primarily.  Reliance selected these cities as the real estate markets of these cities are more firm and have an increasing value appreciation.

Bangalore Real Estate Price Sees Another Hike

Bangalore Real Estate Price hikes again. Despite being affected by the upcoming of Gurgaon, Noida and other suburbs, Bangalore kept its position among the top real estate fields. Due to many reasons there was a considerable growth in Bangalore Real Estate Price. Bangalore emerged as another hotter spot for the real estate. The price of the land and properties of Bangalore rocketed in recent years. Continue reading

MoU Between Century Real Estate and IIM-B

Bangalore-based, Century Real Estate and the Indian Institute of Management Bangalore has signed an MoU for setting up the IIMB-Century real estate research initiative.

The IIMB-Century Real Estate Research Initiative will focus on collecting data and conducting scientific, cross-disciplinary research on the Indian real estate sector that will be published in leading academic and practitioner journals, the realty company said in a statement.

“There is a tearing need for such an initiative in the real estate space that will focus on research, act as an interface between the industry and the policy makers and eventually churn out quality human resource for this sector,” says P Dayananda Pai, Founder-Century Real Estate.

Additionally the research initiative will seek to provide guidance and policy recommendation to government and industry stakeholders on major issues relating to the Real Estate sector.

“The initial charter for the Research Initiative will be to create taxonomy of relevant data that will be required to do meaningful research, initiate research projects that fill key knowledge gaps and engage with key stakeholders within the industry” says professor Venky Panchapagesan, who has been leading the effort to set up this initiative at IIMB.

CREDAI and Builders’ Rift over Code of Conduct

Firstly, several developers declined to abide by the code of conduct laid down by CREDAI. Following this, the association has expelled several developers, while some have resigned discontinuing their involvement with the organisation.

Opposing the self-regulation code, the builders refused to sign the association’s code of conduct. The bone of contention for builders was the code of conduct that primarily outlines transparency clauses that builders have to follow.

Ultimately, CREDAI expelled some builders, as they did not comply with the directives despite the body having issued several notices to them. DLF, Hirco and Hiranandani Realtors have been expelled from the Chennai Unit, whereas four builders have resigned from the Bangalore unit.

CREDAI has further decided to expel non-compliant builders in NCR and informed the expelled builders that they can be a part of CREDAI unit only if they sign the code of conduct.