INRnews - Indian Real Estate News

Real estate services firm Cushman & Wakefield released this information in a recent research report.

In an effort to counter the lack of premium quality accommodation in central Bangalore, 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.

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.

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.

Investment / Sale

The attached chart shows capital values by locality. In key transactions, an apartment on Srjapur Road measuring 1,305 sq.ft. was sold for approximately Rs. 38,00,000. In RMV 2nd Stage, a 3-bedroom apartment measuring 1,935 sq.ft. was sold for approximately Rs. 85,00,000.

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About Cushman & Wakefield
Cushman & Wakefield is the world’s pre-eminent real estate services firm. Founded in 1917, the firm has 192 offices in 58 countries around the globe, and more than 11,000 talented professionals. The firm delivers integrated solutions by actively advising, implementing and managing on behalf of landlords, tenants, and investors through every stage of the real estate process.  These solutions include helping clients to buy, sell, finance, lease, and manage assets. Cushman & Wakefield also provides valuation advice, strategic planning and research, portfolio analysis, and site selection and space location assistance, among many other advisory services.