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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