Real estate news on Residential demand rises in Bangalore Suburbs

Building materials, New projects, Residential Properties, Bengaluru, PS Group of Companies, Century Real Estate Holdings Pvt Ltd.
Posted on Mar 07, 2013
With ‘city limits in Bangalore getting redefined rapidly, many suburbs are coming up as prime residential localities. The rising need for affordable housing is driving homebuyers to these locations because of availability of cheaper land compared to the main city. The connectivity and improved public transport add to the potential of these localities. While the IT corridors in the south are a driving force for the realty market, the airport and planned SEZs in the north are pushing developments in this area.

While connectivity and property prices are the most important factors for an end-user, investors largely look for high returns on investment. For this purpose, suburbs highly suit both the classes of buyers. With expansion of IT hubs and manufacturing industries in the outskirts, demand as well as prices is set to witness a major hike in the coming years. “Sub-urban areas are better bets in most of the metropolitan cities because you are starting with a lower base investment and therefore the probability of rate of return is higher in these areas,” says Pradip Chopra, CMD, PS Group of Companies.

Affordable housing and connectivity options are being sought by many middle income buyers and thus they are moving towards suburbs. For instance, the widening of the Bellary Road in north Bangalore to six lanes made it easier to travel to the airport. It also resulted in a reduced commuting time to many parts of the city, thus boosting the residential demand. Also, the proposed elevated road along this stretch is further expected to ease out traffic and impact the real estate market in the north.

Similarly, towards eastern suburbs, infrastructure developments such as metro rail network, and improved connectivity via the Old Madras Road, 8-lane Peripheral Ring Road and the Outer Ring Road have pushed the realty market in Whitefield. In Hoskote, industrial growth led by planned SEZs is also one factor which is driving the residential demand.

“Plots and apartments are highly recommended for investors. Villas are a risky investment. It is easier to find tenants for an apartment than villas,” says Ravindra Pai, MD, Century Real Estate Holdings Pvt Ltd. With the availability of many such options in the outskirts and no dearth of well-built social infrastructure and amenities, the apprehensions of homebuyers to move to farther locations are coming down.
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