Cushman & Wakefield Market Research

Bangalore - Residential Real Estate Summary - SEPTEMBER 2006
This content is provided by Cushman & Wakefield Research.

 

Market Summary

  • Prime residential areas in central Bangalore continue to witness a steady demand. In an effort to counter the lack of premium quality accommodation in this micro market, leading developers are focusing on launching small projects with all modern facilities like swimming pool, gymnasium, etc. and providing improved finish. However, due to the constraint in supply of land, old bungalows are being purchased and redeveloped, thus gradually changing the development profile of the locality.
  • North Bangalore (Bellary Road to Yelahanka) has also witnessed the launch of numerous new projects with apartments and villas. We expect an estimated 3000 units of various sizes and quality, to be added to this micro market within the next 18 months, in addition to the existing stock. North Bangalore is attracting investors and end-users alike, given the improved infrastructure, accessibility and the future potential for this area.
OUTLOOK
  • Rising interest rates were a concern initially, however, they have failed to deter end-users and the property prices may stay mostly unaffected in the medium term.
  • Sarjapur Road/ Outer Ring Road in south-east Bangalore will continue to be a preferred location for IT/ITeS employees, due to the excellent connectivity to office destinations and the improved infrastructure.
  • The prime residential market in central Bangalore and its vicinity will continue to command high rental values due to the rise in demand and restricted supply.
  • Efforts on improving Bangalore's infrastructure have received an impetus with various initiatives being undertaken by the government including development of the Peripheral Ring Road, the elevated highway from Silk Board Junction to Electronic City, the Marathalli ROB and re-laying of the Outer Ring Road from Hebbal to Old Madras Road. Underpasses are being constructed at critical junctions and the city will have metro rail connectivity by 2010. These initiatives will improve the access to suburban and peripheral locations, acting as a catalyst in the overall real estate growth of these micro markets.

 

Prime Residential Rental Values
District
% Change from
US$/Yr
Euro/Yr
INR/Mnth
Brunton Road, Langford Town, Lavelle Road
39,105
30,869
150,000
Indiranagar, Sadashivnagar, Palace Orchards, Cunningham Road, Richmond Town
26,070
20,580
100,000
Jayanagar, J P Nagar, Basavangudi
11,731
9,261
45,000
Kanakpura Road, Bannerghatta Road, Banashankari
7,821
6,174
30,000
Koramangala, HSR Layout
13,035
10,290
50,000
Sarjapur Road, Outer Ring Road
9,124
7,203
35,000
Marathahalli, Whitefield, Airport Road, Banaswadi, HRBR, OMBR
10,428
8,232
40,000
Cox Town, Frazer Town, Benson Town
19,552
15,435
75,000
Dollars Colony, RMV Extn, Kumarapark East & West
19552
15,435
75,000
Hebbal, RT Nagar, Bellary Road, Yelahanka, Doddaballapur Road
6,517
5,145
25,000
Malleswaram, Rajajinagar
13,035
10,290
50,000
Vijaynagar, Mysore Road, Tumkur Road, Jalahalli, Rajarajeshwari Nagar
3,910
3,087
15,000
 
Prime Residential Capital Values
District
% Change from
US$/Yr
Euro/Yr
INR/Mnth
Brunton Road, Langford Town, Lavelle Road
217
1,846
10,000
Indiranagar, Sadashivnagar, Palace Orchards, Cunningham Road, Richmond Town
130
1,108
6,000
Jayanagar, J P Nagar, Basavangudi
98
831
4,500
Kanakpura Road, Bannerghatta Road, Banashankari
54
461
2,500
Koramangala, HSR Layout
98
831
4,500
Sarjapur Road, Outer Ring Road
59
498
2,700
Marathahalli, Whitefield, Airport Road, Banaswadi, HRBR, OMBR
61
517
2,800
Cox Town, Frazer Town, Benson Town
104
886
4,800
Dollars Colony, RMV Extn, Kumarapark East & West
98
831
4,500
Hebbal, RT Nagar, Bellary Road, Yelahanka, Doddaballapur Road
59
498
2,700
Malleswaram, Rajajinagar
96
812
4,400
Vijaynagar, Mysore Road, Tumkur Road, Jalahalli, Rajarajeshwari Nagar
48
406
2,200

 
Conversion Rate US$1 = Rs. 46.03; EURO1 = Rs. 58.31
Values are average figures for premium 3 bedroom unfurnished apartments measuring 2,000-3,000 sq.ft.
Source : Cushman & Wakefield Research
LATEST NEWS
Key Leasing Transactions
  • Whitefield - A fully furnished, 4 bedroom villa, measuring 3,800 sq.ft. located on a 5,000 sq.ft. gated development plot, was leased for approximately Rs. 2,10,000 per month.
  • Sanjaynagar - A 5 bedroom independent bungalow, measuring
    6,000 sq.ft. located on a 5,000 sq.ft. plot, was leased for
    approximately Rs. 2,00,000 per month.
Key Investment Transactions.
  • Sarjapur Road - An apartment measuring 1,305 sq.ft. was sold for approximately Rs. 38,00,000.
  • RMV 2nd Stage - A 3 bedroom apartment measuring 1,935 sq.ft. was sold for approximately Rs. 85,00,000.
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