Bengaluru’s realty making hay as NRIs, MNCs shine

With several multinationals setting up shop in India and NRI professionals returning in droves to take up lucrative assignments here, many Indian cities are now witnessing an increased demand for commercial and residential property in prime locations.

One of the biggest beneficiaries of this trend has been India’s IT hub of Bengaluru, which is already faced with an acute shortage of leased office space due to a sustained demand over the last few years. According to the latest estimates, Bengaluru today has just about 5% commercial space available for lease, that to in non-prime locations on the outskirts of the city.

The influx of professionals into the city has also had a positive impact on the city’s residential realty with popular locations close to commercial destinations seeing a huge spike in demand. Not surprisingly an estimated 63% of preferred residential locations across the city have reported an average price increase of between 3-5%.

According to reports, the highest demand (approx 68%) has been for homes in the budget category (INR 3-5,000 psf) primarily located in the north, south and west of the city, while projects in the east zone catering to mid-segment (INR 5-6,000 psf)  have also found many takers clocking a healthy market share of about 23%.

Potential buyers looking for homes in Bengaluru’s budget segment (INR 50-60 lakhs) have a slew of options to choose from across the south (approx 17,000 properties), north (approx 12,000), east (about 15,000) and west (approx 2,000).

For buyers with a slightly higher budget (INR 60-80 lakhs), there is no dearth of choice either.  A zone-wise look at the existing options in this category reveal a choice between approx 17,000 properties in the south, 12,000 in the west, 3,000 in the east and over 2,000 properties in the west of the city.

Given the sustained demand, the city is also witnessing a marked increase in the number of new projects being launched, while existing under-construction projects are racing towards completion with a majority scheduled for completion over the next 2-3 years.

So if you’re a buyer who still hasn’t made up his mind, now is the time to go ahead with your decision and buy your dream property in Bengaluru.  Even if you have no intentions of coming back to India in the near future, it’s still a prudent investment with the potential to earn you impressive returns in the time ahead.