B'lore property market is booming

Bangalore residential property market is witnessing high absorption levels and it is averaging sale of 4,000 to 6,000 units per quarter, according to international property consultants Trammell Crow Meghraj.

This high-level of absorption is attributed mainly to the demand coming from IT, ITES, BPO employees migrating to the city from various parts of the country.

The report says the high growth in residential sector is expected to continue for some more time owing to sustained demand from end users and investors.

This high growth has also led to high capital appreciation of new projects.

With this frantic pace of construction, more than 10,000 residential units have been launched or are under construction in suburban locations. Projects conceived are self-sustaining integrated residential township projects with retail, hospitality and commercial component.

Suburban locations in Bangalore include Whitefield, JP Nagar, Banerghatta Road, Electronics City, Hosur Road, Sarjapur Road, Bellary Road, Tumkur Road and Outer Ring Road.

This high absorption levels has led to capital values for apartments in prime central business district (CBD) locations ranging $785 to $982 per square metre, while rental values are in the range of $57 to $72 per square metre per annum. The yield on residential property in Bangalore is about 7 per cent.

High-end residential projects are currently under construction in the CBD with values ranging between Rs 1 crore to Rs 6 crore.

Mantri Altius, a high-end residential project at Cubon Park, in CBD location has apartments that were sold within a week at about $2175 per square metre.

In Bangalore, residential property market is witnessing rapid growth in suburban locations. Prominent developers like Purvankara, Prestige, Renaissance Holdings and Sobha have initiated township projects in the suburban locations.

Prominent projects include Prestige Group "" Prestige Kensington Gardens' 419 apartments at Jalahalli, Purvankara Group "" Purva Venezia, 1,344 apartments at Yelahanka, HM Constructions "" HM Symphoney II, 304 apartments at Kasavanahalli, Varthur Hobli and HM World City II at JP Nagar ninth phase.