Tag Archives: Bangalore’s real estate market

The Bengaluru lease for the Bagmane property is renewed, and Samsung R&D Institute pays more than Rs 50 crore in rent each year

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The 4.2 lakh square foot property has a 60-month lease, is situated in Bagmane Goldstone, and is a component of the Bagmane World Technology Centre. Beginning on Jun 4, 2024, Samsung made a deposit payment of Rs 40.4 crore to complete the lease. 

The largest software research and development center of Samsung outside of South Korea, Samsung R&D Institute India-Bangalore Pvt Ltd, has extended its lease for five years at a rent of Rs 4.3 crore per month at Bagmane’s IT/ITeS Special Economic Zone (SEZ), which is situated in the Outer Ring Road IT corridor. Propstack, a data and consulting firm, obtained the documents. 

The 4.2 lakh square foot property has a 60-month lease and is situated in the Bagmane World Technology Centre’s Bagmane Goldstone building. According to the document, the lease began on June 4, 2024, and the monthly rent will increase by 5% annually. 

For the transaction, Samsung paid a deposit of Rs 40.4 crore, and the annual rent is approximately Rs 51.6 crore. The monthly lease payment made by the company for the Bengaluru property is approximately Rs 102 per square foot. SBG Software Private Limited is the property’s owner, and the company is leasing the space over 11 floors. 

The document indicated that the leased property has 10 exclusive elevators and 562 parking spaces in the building.

Samsung did not respond to inquiries sent to it. 

Samsung R&D Institute is the name of the conglomerate’s largest research and development facility located outside of its home country of South Korea (Samsung R&D Institute (SRI-B) is the name of the conglomerate’s facility that operates outside of its home country of South Korea. 

The documents indicate that the company leased the space in February 2019. The Bagmane WTC Park has a built-up area of 6 million square feet on 52  acres of land. 

Bangalore’s real estate: These are the top 5 neighborhoods for techies to rent in the city

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Techies, good news! MK Stalin, the chief minister of Tamil Nadu, recently announced plans to build a new airport at Hosur, which could help Bengaluru’s Electronic City. 

Tamil Nadu Chief Minister MK Stalin recently announced the construction of a new airport in the border city of Hosur, located 40 km from Bengaluru and only 25 km from the city’s tech hub, Electronic City. This development is good news for Bengaluru’s IT professionals, especially those who have made their home in the southern part of Electronic City. 

For those who do not know, Kempegowda International Airport in Bengaluru is more than 60 km from Electronic City. The commute from Electronic City to the airport currently takes one to three hours. 

Various IT professionals are employed in Hosur’s Electronic City, which offers faster internet and more reasonably priced housing than many other Bengaluru neighborhoods. 

A local broker recounted a recent experience in the property-starved market of IT hub Bellandur in Southeast Bengaluru: “A couple that wanted to move from Electronic City to Bellandur had to pay Rs 5,000 more than the initial rental price cited for a 2 BHK because of high demand.   

According to Saurabh Garg, the founder and chief business officer of NoBroker.com, rentals have increased in some of Bengaluru’s well-known IT hubs due to a mismatch between supply and demand. 

These are five Bengaluru real estate hotspots that are well-liked by the city’s IT workforce. 

Bellandur 

Sarjapur Road borders Bellandur, a well-known IT hub in South East Bengaluru, to the South, and the HSR Layout borders it to the west. Numerous massive corporations call it home, including Wells Fargo, Adobe India, Linkedin, Intel Technology, and Adobe. 

Bellandur offers a good selection of contemporary apartments and gated communities, with projects from prominent real estate companies like Prestige Estates, the Embassy Group, and Sobha Ltd. The region also benefits from the presence of multiple coliving brands. 

“But it is hard to find good options and the rents are too high,” an Amazon India employee who lived in the neighborhood said. 

According to NoBroker data, the average rental price of a two-bedroom apartment in Bellandur is currently Rs 40,000. According to local brokers, rents in this area have increased by 20% in the last 12 months. They attributed the sharp rise to a shortage of land parcels and a supply constraint.  

Whitefield 

Whitefield is a posh IT and residential district located on Bengaluru’s eastern outskirts. 

The average cost of a residential property in this area is currently Rs 10,850 per square foot, based on data available on 99 acres. A 1-BHK apartment can set you back anywhere between Rs46.25 and 87.50 lakh. 

According to NoBroker, the average rental price for a fully furnished 1 BHK is Rs 28,000, while a 2 BHK can be rented for Rs 35,000. According to the Proptech unicorn, Whitefield rent increases have been between 7 and 10% since the Purple Line metro opened for business in March of this year. 

Real estate companies based in Bengaluru, and those from other cities have placed bets on the Whitefield market with several projects, such as Godrej Properties, Prestige Estates, Sumadhura Group, and Sobha Ltd. 

Marathahalli

Marathalli, an East Bengaluru residential neighborhood on the Outer Ring Road, is highly sought-after because of its advantageous 8.6-kilometer proximity to Whitefield. 

As per NoBroker, the current average rent in Marathalli for a 2BHK apartment is Rs 32,000. A local broker stated, “Yet, land in Marathalli is not available for upcoming projects.” He said that prices have increased by 10% to 15% annually. 

According to Propertywala, this neighborhood’s average price per square foot for real estate transactions is currently Rs 9,151. 

Electronic City 

Local real estate brokers in the South Bengaluru tech hub report a 10-15% increase in rentals year over year. 

The price increase in this location cannot be compared to other areas because of the large amount of unsold inventory, according to Kiran Kumar, vice president of Hanu Reddy Realty. He stated, “The share held by apartment landlords is also declining due to the availability of multiple options for paying guests. 

A 2-BHK apartment in Electronic City is currently for rent for an average of Rs 28,000, according to NoBroker. 

Hennur 

Hennur in North Bengaluru has become increasingly popular with IT professionals in the IT city as a preferred residential area after the COVID-19 pandemic. Six kilometers separate it from the well-known Manyata Tech Park. 

According to Kumar, property values in this area have increased by 10% to 15% over the past 12 months. He also mentioned to expect a greater demand for 2 and 3 BHKs in this area. 

According to Square Yards, a 950-1,200 square foot 2 BHK unit in Hennur currently rents between Rs 32,300 – 40,000. A 1,250- 1,630 square feet 3BHK rents for Rs 43,100 -55,600. 

The Kempegowda International Airport is located in North Bengaluru, while Hebbal is 25 kilometers away. 

According to Propertywala the average residential property rate in Hennur is $10,850 per square foot. 

Why are Bengaluru and Mumbai the top destinations for real estate developers?

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At least six real estate developers from Bengaluru and Mumbai have increased their footprint in the two cities during the last ten years. Numerous companies, including the Delhi-based DLF, the Bengaluru-based Prestige Group, and Puravankara, have announced or entered the Mumbai real estate market. Realtors from Mumbai, including Lodha and Godrej, have also set foot in Bengaluru.  

However, why do developers wish to have a piece of the real estate markets in Bengaluru and Mumbai? Real estate experts say the main goal is to increase and establish their presence in more cities. 

According to experts, the growth pattern of listed real estate developers in these cities is more pronounced than that of unlisted or mid-sized realtors. 

Mumbai attracts developers due to its high sales velocity and better margins. 

Puravabkara Limited, a Bengaluru-based company, made market entries in Pune in 2017 and Mumbai in 2021. The company has been expanding quickly into Pune and Mumbai in recent years. The company also has a substantial portfolio in the Pune and Mumbai commercial markets. 

“There are several reasons why expanding into the Mumbai real estate market makes sense. The first is that the size of the real estate market in the Mumbai Metropolitan Region (MMR) is nearly the same as that of the entire South Indian real estate market, making it the largest in the nation. Rajat Rastogi, CEO of Puravankara Limited’s West and Commercial Assets, stated, “Secondly, MMR offers products across price segments that range from ultra-luxury to affordable housing thus enabling a wide product range.” 

Approximately 4.5 million square feet are currently under development in Puravankara, the residential real estate market in Mumbai and Pune. This includes several projects in both cities. “In Pune and Mumbai, we intend to launch six or seven projects in the upcoming year.” Our plans include creating a substantial commercial real estate portfolio for Pune and Mumbai. Therefore, We are deepening our presence in Mumbai and Pune in addition to having a footprint,” Rastogi stated. 

As of FY24, Prestige Group, another developer based in Bengaluru, has 37 active projects. The company’s investors’ presentation for FY24, of these projects, seven are in Mumbai, twenty are in Bengaluru, and the rest are in places like Hyderabad, Calicut, Bengaluru, Kochi, and Ooty. 

Thirteen of the thirty projects the company has in the works are in Bengaluru and three are in Mumbai. 

An anonymous developer from Mumbai informed HT Digital that despite having a solid portfolio in Mumbai, he began a project in Pune. “I will need to build 20 square feet in Pune to make the same amount of money as one square foot in Mumbai. Thus, it makes sense for firms with listings to join the Mumbai market. The demand for luxury housing puts you on different scales and price points, so mid- and small-sized developers should keep working in their home market of Mumbai, said the speaker. 

Mumbai realtor moves into Gurgaon; North Indian developer ventures into Mumbai 

Mumbai’s Andheri is expected to see the launch of a project by Delhi-based DLF this fiscal year. Together with Trident Group, DLF is developing the Slum Rehabilitation Authority project. 

Oberoi Realty declared in November 2023 that it would buy 14.81 acres of land in Gurgaon, Haryana’s Sector 58 for Rs 597 crore. Up to 2.6 million square feet of floor area are believed to be attainable with this land. 

The company plans to construct a luxurious residential group housing project on this land. 

Are developers from Mumbai moving to Bengaluru because of the lower land prices? 

Bengaluru is the first choice for Mumbai-based developers looking to expand across multiple cities or the nation. Bengaluru is the first choice for Mumbai-based developers looking to expand across several cities or the entire country. Speaking with HT Digital, industry insiders cited high end-user demand and land availability over investment options as key draw factors for this market. 

“There is a lot of demand in Bengaluru, the country’s largest commercial market. According to Shantanu Mazumder, executive director of Knight Frank India’s Bengaluru division, other developers’ attention started turning towards the city at that point and has since grown. 

Additionally, he clarified, that lower land prices in Bengaluru relative to Mumbai aid developers in maintaining profit margins because building costs are relatively constant across cities. 

Over the last ten years, several well-known Mumbai brands, including Tata Housing, Mahindra Lifespaces, and Godrej Properties, have successfully entered the garden city. 

For instance, Lodha recently launched two opulent residential projects in Bengaluru’s eastern and southern regions, making its first foray into the business. 

According to data accessible on the integrated real estate platform Square Yards, Godrej Properties has expanded its presence in Bengaluru with over 30 projects across various categories. 

On the other hand, Tata Housing has yet to finish any projects in the city. After moving to Bengaluru in 2015, Mahindra Lifespaces has started work on four residential developments. 

The final consumer drives the real estate market in Bengaluru.

Experts stated that attracting Bengaluru’s astute consumers necessitates fierce competition due to having a diverse range of seasoned home brands, including Sobha, Puravankara, provident Housing, RMZ, and Brigade, among many others.  

Bangalore is a sizable market. Within the Grade A space, there are a minimum of 17-18 established operators. Mazumder clarified that many developers who relocated to Bengaluru struggled with their first one or two projects since they needed to establish a track record of success to gain trust. 

He claimed the patrons here are seasoned because they have watched home players grow. Consequently, a novice player typically completes the life cycle of two to three projects before branching out.  

“Bengaluru is a very evident end-user-driven market; it is not a speculative market,” Mazumder declared. 

“Identifying, building, and leasing are the first steps in the commercial segment. Thus, the player must continue to invest in the project for four to five years before leasing. Consequently, most of them are eager to begin with residential properties before gradually expanding into the commercial market,” he continued. 

What is making Kanakpura Road a sought-after residential area?

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Bengaluru’s most sought-after real estate area is Kanakapura Road, hidden in the quiet suburban charm. This growing neighborhood, which attracts investors and homeowners due to its convenient location, offers a modern urban lifestyle in a tranquil setting. Kanakapura Road is a testament to Bengaluru’s dynamic real estate market, ready to draw in buyers looking for convenience, affordability, and peaceful surroundings. Its varied housing options, quick market appreciation, and dedication to maintaining its nature also contribute to this. 

Advantages of Location

The advantageous location of Kanakapura Road provides its residents with many advantages. Its outstanding connectivity, which offers simple access to significant thoroughfares like Hosur Road via NICE Road and the Outer Ring Road, is among its most notable attributes. The city’s inhabitants are used to traveling to neighboring cities like Mysore and around it.  

There are plenty of choices when it comes to transportation. There is an extensive network of autorickshaws, buses, metros, and app-based taxi services accessible. Moreover, the neighborhood’s proximity to Banashankari Bus Terminus is noteworthy and contributes to the ease of commuting for its residents within the city. Whether you are a professional, a family man, or an adventurer, Kanakapura Road offers a comprehensive solution by fusing modern conveniences with metro connectivity to keep you ready for the future. 

Infrastructure developments 

The infrastructure surrounding Kanakapura Road has undergone a dramatic change. Significant modernization of the road network has improved living standards and made commutes more comfortable. The attractive metro (Green Line) line, which promotes intra-city connectivity and unleashes additional potential for this region, is noteworthy. Kanakapura Road is becoming a lively and well-connected community due to the convergence of better infrastructure and increased connectivity, providing an enticing mix of contemporary convenience and exciting investment opportunities. 

Adaptable residential environment 

Homebuyers and developers alike are taking notice of Kanakapura Road as it has become a highly sought-after residential hub. Its advantageous position in IT parks, medical centers, and entertainment hotspots has improved its standing in the real estate market. Prospective homeowners can choose from options that fit their needs and budgets. 

You can look at housing options in this area, from luxurious gated communities to reasonably priced apartments. It is the best option for anyone looking for a home in popular communities like Banashankari, JP Nagar, Jayanagar, Basavanagudi, Konanakunte, Tlaghattapura, Kumaraswamy Layout, ISRO Layout, Uttarahalli, Padmanabhanagar, Bannerghatta Road, and RR Nagar because the price range varies to suit a variety of budgets. Whether you want to upgrade or buy a home for the first time, Kanakapura has a residential option that meets your needs. 

Peaceful balance between ease and quiet 

Kanakapura Road is the ideal location for individuals seeking a harmonious lifestyle because it skillfully combines the comforts of city living with a tranquil setting. There are plenty of options for entertainment nearby, including cinemas, busy shopping centers, and delicious restaurants. Due to the area’s advantageous location, residents have easy access to top-notch healthcare and education options. Notable educational institutions in the area include Sri Kumaran Public School-ICSE, Jnana Sweekar Public School, and The Valley School. Prominent healthcare facilities are also located nearby on Bannerghatta Road and Jayanagar. Furthermore, IT workers benefit notably from the location’s closeness to bustling IT parks and tech corridors like Global City Tech Park, which allows them to shorten commutes and achieve a better work-life balance. For individuals in Bengaluru looking for the ideal blend of city conveniences and peaceful living, Kanakapura Road is a great option. 

Investment Quality 

Kanakapura Road is a bright spot for investors. Property values in this area have been steadily rising due to the area’s advantageous location and the rising demand for housing. With continuous infrastructure improvements, the future appears more promising due to real estate prices staying up and, as a result, offering a superior return on investment. 

Kankapura Road is a tempting option for people looking for a second home because it provides a calm atmosphere and lots of green space. Gated communities and opulent apartments enhance the appeal by offering a first-rate lifestyle that pleases discriminating purchasers.  

Potentials 

As Bengaluru develops and grows, Kanakapura Road has a lot of promise for the future. The general quality of living will rise with the construction of parks and recreational spaces, adding to the neighborhood’s aesthetics. Kanakapura Road’s residential real estate is in high demand due to Bengaluru’s growing business and startup scene, making it an excellent investment option. The region is a great place to invest because it provides a prosperous present and a promising future.  

Conclusion 

A vibrant community that perfectly captures the spirit of contemporary urban living exists along Kanakapura Road. Convenience and peace of mind coexist here thanks to its advantageous location, excellent connectivity, and thriving infrastructure developments. Kanakapura Road is a great place to live, whether you are a savvy investor searching for deals or a potential homeowner looking for a cozy home. Bengaluru’s growth indicates that this region has a promising future and is a great investment opportunity. By purchasing real estate on Kanakapura Road, you are also investing in a way of life that blends the finest living standards with a tranquil setting.