Middle Segment Housing in Bangalore and its Best Locality

When it comes to middle income housing segments, Bangalore has shown the maximum capital value appreciation at 41 percent in the past 3 years. On the other hand, Pune has topped the list of capital value appreciation with 39 percent for higher end properties among the 7 major cities of India. In the NCR Delhi region, housing prices increased by 24 and 22 percent in the high and middle segment properties in the past 3 years. The 7 cities which are included in this analysis are Mumbai, NCR Delhi, Chennai, Kolkata, Hyderabad and Pune for ranking the average appreciation of capital value.

The middle segment housing properties in Bangalore have shown the highest appreciation in average capital values over the past 3 years whereas Pune showed the highest median appreciation for higher end properties of the same period. The middle segment housing’s capital values have gone up in the bracket of 14 percent to 41 percent in the past 3 years whereas those in the higher end properties have gone up by 16 to 39 percent during the same period. After Bangalore, the highest percentage increase was that of Pune at 28 percent followed by Chennai at 27 percent, the NCR Delhi at 22 percent and Kolkata with 17 percent. Mumbai has exhibited a median increase in capital values by 16 percent almost whereas Hyderabad has shown an increase of 14 percent almost.

When it comes to the higher end segment, Pune has shown the highest rise in capital values at 39 percent which is followed by Bangalore at 37 percent and Chennai at 34 percent. NCR Delhi and Mumbai have shown an identical average rise of 24 percent almost whereas Hyderabad showed an average rise of 16 percent almost. In terms of capital value appreciation, North West Bangalore has shown the highest capital appreciation at 95 percent which is the maximum among top 7 cities of Indian. This has been possible solely because of the best quality development taking place which has further fuelled growth. 

There was much disparity in median capital value appreciation level in the past, the increase in capital values across all markets have shown positive developments on the real estate fronts despite slower economies. Markets which are mostly driven by end-users have shown the highest possible rise in capital values whereas markets which are driven by investors such as Mumbai and NCR Delhi have shown lesser appreciation.

The slowly growth real estate in markets driven by investors may be due to sluggish economic development, the Indian rupee’s depreciation in the face of the dollar and other factors of unrest like inflation and slow rate of development of real estate.

Several localities of Bangalore have exhibited consistent growth in the housing real estate market and appreciation of capital values. One of the posh addresses of South Bangalore, Bannerghatta Road has shown capital appreciation and consistent growth, much to the delight of local investors.

Three factors could be attributed to this increase in prices.

         Improvement in Connectivity

The improvement in connectivity to east and south Bangalore has led to a hike in real estate prices. The transport system of Bannerghatta Road is highly planned and efficient with economic hubs and newer corridors in place. These improvements in connectivity have elevated prices in the area to a great extent. The BMTC or the Bangalore Metropolitan Transport Corporation has bus service operating in the area and it connects Bannerghatta Road to other important areas of the city.

          Increase in Job Prospects of Bangalore

The job market in the vicinity is growing which is also quite attractive to buyers who want to buy a home in the vicinity of these office spaces. The main focus is on JP Nagar which has offices by Accenture, CISCO, Infosys and IBM along with Convergys and Honeywell.

       Natural Beauty of Bannerghatta Road

Bannerghatta Road is on a high because of the natural beauty of the area. Most buyers of this area are end users which is why they prefer to have a lot of greenery around along with a pollution free environment. These factors make the area liveable for buyers.

What can buyers get here?

Buyers have the option of choosing from various kinds of apartment complexes, from builder floor flats to multi-storeyed complexes. You can buy a 1BHK flat in Bangalore in this area for Rs 25 lakhs to Rs 30 lakhs whereas for 2BHK flats in Bangalore in this area, you would have to shell out Rs 30 lakhs to Rs 50 lakhs. For 3BHK flats, the price is around Rs 45 lakhs. Price of 3, 2 and 1BHK flat inBangalore Bannerghatta may vary according to the area and facilities and amenities offered. Even though most of the flats supplied here are multi-storeyed flats, a few residential houses are also available for sale. The selling price of such houses is around Rs 70 lakhs or so.

Future of Bannerghatta Road

The area is considered to be a safe bet area for most end users as from now on, improvements shall be there in infrastructure and connectivity which will further lead to a rise in demand here. The upcoming metro services should further boost the capital values of property in this area according to local realtors. The Metro Station on Bannerghatta Road shall be a part of the New Line through the North South Corridor which would connect the Trinity Circle and MG Road to other areas of commerce in Bangalore. Once the metro railway becomes operational, prices should go up by 20 percent or so.

As evident from the statistics, Bangalore is slated to grow further as employment opportunities will increase. As soon as the metro services start in Bangalore, property prices would increase rapidly. Both localities in North and South Bangalore are expanding rapidly and their prices too are increasing. Both sides have their own benefit- one connects better with the airport and other IT hubs that have come up near the airport while the other connects well with the IT hubs of the south such as Electronic City and Manyata Tech Park.