IT,INFRASTRUCTURE DRIVE REALTY IN CITY Connectivity and proximity to workplace are major factors in choice of location Bangalore,the most positive property market in the country today,posted a whopping 17 percent rise and had a major impact on the National Property Index (NPI) in PropIndex July-September 2013,produced by Magicbricks,the leading property portal promoted by the Times Group. PropIndex is a function of a number of listed properties on Magicbricks against the quoted values in the market in the quarter.Complex algorithms knock off outliers before index values are computed.It tracks both capital and rental values.Individual properties are aggregated at the locality and city levels and then benchmarked against national values to arrive at national and city indices.This time was the 10th PropIndex and Volume II of the third series. Bangalores property markets were largely driven by east and north Bangalore,both driven by demand from IT professionals.While east Bangalore areas,such as Whitefield,Electronic City and ITPL are established IT hubs with ample residential properties in all categories available for sale and lease,north Bangalore areas are evolving after the international airport moved there. The major driver of Bangalores residential real estate preferences was proximity to place of work.The accessibility to workplace was a major driver.In addition,infrastructure upgrades,safety and security and gated communities scored.Social infrastructure such as schools,hospitals,entertainment and shopping hubs in the vicinity also got a thumbs-up. Infrastructure upgrades played a major part in the rise in values and preference for north Bangalore areas,such as Thanisandra,Belandur and Hebbal.Access to IT special economic zones and other commercial hubs has driven demand here.As a city driven by manufacturing and IT,premium demand also posted healthy trends. Supply and demand remained stable across the city with a marked buyer preference for properties in the Rs 40-60 lakhs budget.In south and east Bangalore,there was marked preference for properties in the Rs 20-40 lakhs range. The true strength of any citys property market is when the rental markets keep pace with capital values.In Bangalore,97 percent of localities tracked posted a rise in lease values.This indicates that the city is driven by end users and not by investors putting in money in search of leveraged growth in property value. IT-driven localities such as Electronic City,Whitefield and Sarjapur have featured in the preferred localities list.Wellmaintained localities with community interaction and good connectivity pushed the rental demand in areas such as HSR Layout.Lack of civic facilities such as water and power has detracted from rental preferences unless these services have been augmented by back-up facilities.Proximity to workplaces and good transport connectivity are major drivers. Maximum supply in the city was of two and 3-BHK units,accounting for 42 percent of the supply.These came in sizes of 1,000-2,000 sqft.There was demand for smaller units around IT hubs.Demand for villas was largely around ITdriven premium locations such as Whitefield and Sarjapur. Bangalore remained largely an end-user driven prosperous market with robust demand and supply across categories.The steady release of land due to development of transport networks on the periphery of the existing city limits have ensured new land being made available for development. TNN
Posted on: Fri, 22 Nov 2013 04:57:41 +0000
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