Real Estate Investments Climbing the Ladder of Growth in Namma Bengaluru

“Ninety percent of all millionaires become so through owning real estate”, - Andrew Carnegie

Due to its status as the nation’s emerging IT center, Bangalore has been referred to as ‘India’s Silicon Valley’ for decades, just like the Silicon Valley of US. But for the recent decade Bangalore seems to become the silver valley with the golden opportunities for the investors in real estate. The city and the location play the major role in investing, and people always look for a potential spot before such a long-term investment. The abundance of investment opportunities also overwhelmingly attracts a potential investor, and it helps a city or location to stand out amidst numerous metro cities in the country. So before investing your hard-earned money, it is very important to scrutinize the real estate market to know the possibilities of the city’s real estate growth.

According to the famous Real Estate consultant Knight Frank, residential property prices per square foot increased from January to March this year in all eight cities namely Bengaluru, Delhi NCR, Mumbai, Hyderabad, Chennai, Kolkata, Pune, and Ahmedabad. A market report reveals that, out of the 24 real estate markets Bengaluru’s residential market alone anticipated to increase by five percent yearly. Bengaluru’s real estate market has also witnessed a huge influx of fund in terms of investment for NRI investors in residential real estate. According to the real estate expert, NRIs from Asian regions, from countries like Singapore and from the Middle East, are also making huge investments apart from those in the US.

Why Bangalore became the most attractive destination for real-estate investment?

Bangalore has grown rapidly in the last decade which attracted most of the renowned builders like Prestige, Sobha, DLF, and BCD. And so on and various multinational companies to laid the foundation of their huge empire. The real estate market of Bengaluru is proliferating because of the following reasons-

• A job is the most vital player in anyone’s life because it will help us to make our ends meet. If we have a decent job, we can update the standard of living. So, every year a large number of migrant workers are flying to Bengaluru in search of a prospective job. Bengaluru has developed as the major hub of IT industry, and also the IT parks, excellent employment opportunities, and leisure opportunities, and establishments are the major factors which have contributed to the city's growth. Bengaluru has the highest level of technological development and industrial growth in India.
   
• Owing to the growing number of national and multinational IT companies, a lot of money is floating in the market, which is giving birth to many innovative startups. As the startup economy is uprising, luxury and lavish apartments and the development of beautiful villas are also on the rise. This is making an excellent investment opportunity for the investors and real estate developers.
   
• High-profile posh areas like Whitefield, Hebbal, Indira Nagar, Hennur, and Yelahanka, Varthur, Devanahalli, and Sarjapura can fetch 2x or sometimes 3x return on the investment in just 5-10 years.
   
• Bengaluru is also quite famed for its vibrant nightlife, entertainment options, popular tourist destinations, opulent lifestyle and a calm and soothing weather round the year. Here in Bangalore, getting funding for investment is not a hectic task, as there are so many banks and housing finance companies or the best life insurance companies offering their services to assist you in obtaining the funds required to purchase a home or a plot.
   
• Bengaluru is an educational hub which offers a quality education for your upcoming generations. It has the best educational institutions, ranging from pre-primary to post-doctoral research. The high standard of education can ensure that your offspring will receive an education that meets international standards.
   

Demand of Sustainable Green Real Estate

A large number of renowned developers are increasing including sustainable features in their projects to address the rising demand for green homes in the city. As these special residences have a minimal negative impact on the environment, consume less energy, reduce carbon footprints and encourage environmentally friendly behaviors. Sustainable green homes are specially built with better indoor air quality and good landscaping to boost the ecological biodiversity. Smart thermostats, energy-saving appliances, and adequate insulation save energy use and utility costs. These homes are specially built with wastewater treatment facilities and rainwater harvesting systems, which foster water conservation and lower water bills. The increasing demand of desire to live in such green homes is floating up in the market and giving a jerk to the country’s green real estate market.

Real Estate Market of Bangalore

Presently, Bengaluru’s East and South Zones are known for their thriving real estate markets. Following the footsteps of IT companies, many companies from different sectors are flying into the city. Globally acclaimed companies like IBM, Microsoft, Adobe, Oracle, Google and many have established large offices in Bengaluru, employed millions of the youth. To accommodate such enormous workforce, organizations are renting or leasing commercial complexes. Renowned builders like Prestige group, Brigade Group, and Sattva Group are investing in commercial buildings for earning high return on investments. After the reopening of all the offices, the demand of co-working office spaces has been skyrocketing.

The growth rate for Bengaluru’s prime office leasing is predicted to be the highest with, at five percent to seven percent increase in sale Y-O-Y in 2023. For the Millennials, Bengaluru is not just only a place for investing in commercial properties but it is a dynamic city where real-estate market grows with stability and a potential growth can be seen in digital transformation. One of the prime reasons of attractive investments here is its tax benefits. Report says that, Bengaluru and Delhi-NCR, are leading the industry, accounting for 66 percent of net coworking absorption in Q1 of 2023. People are heading over their heels to buy flats for them because of the surging rent post lockdown and covid situation. People are investing in new properties instead of paying hefty rent. As a result of such burgeoning demand, Bengaluru’s suburbs have been witnessing the construction of numerous luxurious homes and apartments.

Future Ahead

According to industry experts, the surge in NRI investment in residential real estate is a trend that is expected to propel 2023 investments to an anticipated $25 billion, up from $20 billion in 2022. Being the breeding ground of multiple number of prospective startups it is attracting NRI investors for their funding. The inclusion of advanced technologies like AR, VR, Artificial Intelligence, IOT in real-estate is immensely affected the investment in real estate in Bengaluru. The Karnataka government is proposing to increase the guidance value of properties by 15 percent, which is likely to impact the land value and registration volume in broader aspect. Prospective investors and realty developers are eyeing on the north Bengaluru as it is showing greatest possibilities for real estate investments due to its proximity to Kempegowda International Airport. According to a report, within 2025, another 350,000 new jobs are likely to be created in North Bengaluru, capturing around 30 percent overall office absorption by 2025. Its growth will be followed by south and East Bengaluru.

Conclusion: Undoubtedly, Bangalore is speeding up its development process holding the hands of technology and it has developed a large portion of its landscape. IT companies have immensely dominated the economic scenario of the city and attracted large number of people from all over the India to live here. Huge mass of population is giving birth to prolonged traffic jam and increasing the level of pollution. It is very important to promote Biophilic architecture, Green buildings, apartments and buildings surrounded by more plants and trees like what great builders and players of real estate such as Prestige, Sobha, Brigade Group are inculcating in their designs and construction. It is better to save nature as well as develop real estate sector rather than just extracting the serenity and calmness of nature.

In addition, Bengaluru government has taken many steps like green vehicle, tree plantation programs, construction of state highways. But the target is so far to be achievable. So, private and government organizations should collectively work vigorously towards the ecological development of the city so that, in coming years Namma Bengaluru can retain its position with prowess and simultaneously promote real estate proudly.