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Bangalore Luxury Homes – A Billion Dollar Market


By Mr. Karun Varma, JLL India

Mr. Karun Varma
Bangalore’s luxury residential market seen a major transformation in the recent past, with the Kingfisher Tower setting a new capital values benchmark (northwards of Rs. 30,000 per square feet) in the super luxury category.

The new dynamics being seen now have been referred to as the ‘coming of age’ of the Bangalore residential market, and I agree with this definition. We are certainly witnessing a remarkable maturing process here.

According to JLL India data, capital values for residential property in Bangalore have increased by 25 per cent since the trough in mid 2009, not factoring inflation.

Now, the absorption of residential spaces in the city is skewed towards the Rs. 3,000 to 7500 per square fee. price band, but there is also significant momentum in the price band of Rs. 7500 per square feet and above.

The upcoming supply in this category of homes is a clear indication of this trend. The short-term economic inhibitors currently at play across the country have definitely had their effect on buyers’ sentiments. But, Bangalore’s residential market is still one of the most resilient from a long haul perspective.

One of the reasons for this resiliency is that Bangalore luxury houses developers have a tendency to think on their feet. They have been reinventing their offerings constantly in term of the amenities offered. From completely automated ‘smart’ homes to private pools and from extravagant landscaping to golf courses in the backyard, the differentiators are varied and unique.

CBD Charisma..!

While Bangalore’s CBD has traditionally been the location of choice for luxury homes, North Bangalore & Whitefield have emerged as strong alternative destinations for such projects.

Some of the luxury projects currently gracing Bangalore’s CBD include:

^ Prestige’s Edwardian
^  VanGogh’s Garden by Total Environment
^  Century’s Renata
^  Skyline’s Villa Maria
^  Brigade’s Rhapsody and Crescent
^  Nitesh Estates’ Logos

About 130 units in these luxury residential projects, which are in different stages of construction and completion, are priced at Rs. 5 crores & above. These alone account for a 10 crore dollar market just in Bangalore’s traditional luxury homes catchment.

Northward Bound..!

Meanwhile, the Devanahalli & Hebbal sub markets are showing an impressive scale of activity on the premium & luxury projects front. This is largely due to the on going and planned infrastructure developments in these areas, with the establishment of Bangalore International Airport being one of the primary catalysts for the North Bangalore micro-market.

Though nascent social infrastructure & non-availability of water are challenges, North Bangalore has enormous potential to develop into a prime residential property hub. JLL India have already seen the arrival of premium projects such as Prestige Golfshire, Embassy Boulevard & Embassy Lake Terraces, which are scheduled or under construction in Devanhalli & Hebbal.

The established residential hub of Indiranagar has smaller projects by developers like Marvel, comprising of 5 to 10 units priced at Rs. 5 crore &  above.

Embassy &  Divyasree have also put the old airport road on the luxury residential map by launching with their premium house offerings Embassy Grove & 770 East.

Altogether, Bangalore has approximately 1,100 super luxury house units price tagged at Rs. 5 crore in various stages of planning & construction. This translates into a market worth more than a billion dollars.

Even considering this, the capital values on the Bangalore super luxury houses market are still more attractive than those of Mumbai or /  Delhi. Once the city’s infrastructure development catches up with the current pace of real estate development, there will be no stopping Bangalore’s residential market.


About the author...!
Mr. Karun Varma is Managing Director (Bangalore and Kochi) at Jones Lang LaSalle India

Contact: 
Mr. Karun Varma
Managing Director – Bangalore & Cochin & Executive Oversight, South India
Phone: +91 80 4118 2900
Email: karun.varma@ap.jll.com


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