The real estate sector in Bangalore, the IT of the country, is expected to witness continued buyer interests in the coming year. The residential market in Bangalore will see new launches by developers both in the high-end and mid-end developments.
According to an outlook for 2013 provided by Knight Frank India, a real estate consultancy firm, the residential segment in Bangalore will remain upbeat despite the slowdown witnessed in other cities. In the year 2013 the commercial real estate segment in the city is likely to see a subdued demand with corporates contemplating whether to and when to expand operations. As a result of these factors, rentals are expected to remain stable, without much upward revision, it said.
Avinash Rao, Regional Director (South)- Knight Frank India said: “In the residential segment, on the price front, a number of factors such as the lending interest rate, inflation rate and other economic conditions that can affect purchase decisions of a buyer will determine the demand for housing and price appreciation in the forthcoming quarters.”
He also said that, “Marginal appreciation is envisaged in a few micro-markets like Hebbal and Sarjapur Road that have considerable IT/ITeS sector presence.”
In the city regions like Whitefield and Outer Ring Road will continue to be preferred office market destinations in the city due to Grade A space availability and competitive values in the leasing market. Going forward Hebbal and a few other key areas in North Bangalore are likely to see greater interest in the commercial segment.
Further Knight Frank India also said that Bangalore office market is envisaged to witness a cautious delivery of projects in the forthcoming quarters on account of the present economic uncertainty
The report also said in 2012 despite the threat of global turmoil, the city remained one of the most preferred office space destinations in the country. The IT/ ITeS industry continued to be the key demand driver for office space this year as well.