Bangalore residential real estate market to see more balanced growth | INRnews
The Karnataka government has given its nod to 11 local, national and international developers to develop the mega integrated townships for IT and ITES in Bangalore. This decision will stimulate IT & real estate activities and will also help in retaining the city's image of being the favoured IT/ITES destination says real estate services firm Colliers International.
According to Colliers, Q3_07 observed an addition of about 1.5 million sq ft residential space in the prime locations. Central area, Bannerghatta Road & Whitefield remained the major contributors in this quarter as well.
Bangalore residential market like other markets remained stable with marginal strengthening of rentals in prime locations. The stability in market is evident since first quarter of the year due to substantial supply addition into stock. Moreover, the rise in interest rates on housing loans also helped in avoiding any significant increase in rental & capital values. Rentals in areas like Cooke Town, Jayanagar & Airport Road hovered between INR 22 – 27 per sq ft while, Central area & Indiranagar maintained their dominance by fetching highest rental & capital values across the city.
With the approval of mega integrated self contained township projects, the city is all set to witness large amount of supply in the future with a concept of 'work-live-play'. Moreover, CDP's proposal to 'Go Vertical' will augment the stock in existing as well as new areas in the long term. These two major decisions are expected to encourage the developers to launch large scale projects. Owing to increased FSI, the market was expecting announcement of many projects being launched post CDP release; however owing to a slowdown in demand, the developers have put on hold the launch of new projects said Colliers International.
The Bangalore residential property market could see capital values rise by 3-4% QonQ while rental stabilise near current levels according to Colliers International.
Colliers International (India) provides property services to property Investors and Occupiers, delivering customised service solutions utilising local and global knowledge via its property Investment and Occupier service lines. These service lines include - Corporate Real Estate, Facilities Management, Land Sales, Office Leasing, Project Management, Residential, Retail, Sales and Investments,Valuation and Consulting Services
By INRnews Correspondent