Property Prices in Bangalore grow by 5% in Oct-Dec 2014 over Jul-Sep 2014:99acres.com Insite Report

February 16 2015

Major Highlights:

• East Bangalore recorded maximum growth of seven per centin Oct-Dec 2014 quarter, followed by West and South Bangalore which recorded 5 per cent growth each
• Information Technology (IT) industry remained the key growth driver for North, East and South regions of the city
• The rental market in the city recorded a 16 per cent hike in last one year. Metro played a major catalyst for pushing the lease rates up
• The city saw maximum supply for residential apartments configured as 2BHK units, closely followed by 3BHK units
• Maximum demand for housing continued to be recorded in areas most conveniently connected by the Namma Metro

Bangalore, 16 February, 2015: 99acres.com Insite is a quarterly report focusing on capital and rental price trends in the residential real estate market across seven major cities of India. According to the report, property prices in Bangalore recorded an average growth of five per cent in Oct-Dec 2014 as compared to Jul-Sep 2014. The annual comparison between Oct-Dec 2014 and Oct-Dec 2013 reflects a 12 per cent rise in residential property prices. The average rental values too have risen by 16 per cent in the last one year. Mid-sized homes configured as 2BHK units made up almost half of the total market. The total number of properties available for sale in the city went up by 14 per cent in current quarter.

Commenting on the report, Mr Narasimha Jayakumar, Chief Business Officer, 99acres.com,said, &ldquoOwing to several infrastructure proposals and development of industrial corridors, Bangalore has been one of the best performers amongst major Indian metro cities. Presence of IT industry kept majority housing demand concentrated towards East and South. Localities close to the Namma Metro also garnered healthy buyer preference.&rdquo

Price Analysis of Bangalore(Oct-Dec 2014 vs. Jul-Sep 2014):
Residential Apartments:

• Marathahalli, Hoodi and Babusapalaya recorded maximum price hike of 18-20 per centin this quarter. Since Hoodi and Marathahalli fall closest to the IT companies of the East, they commanded high preference from end-users.Similarly, residential pockets on ORR registered an average hike of 10 per cent and Banaswadi of 11 per cent.
• Despite being the major growth driver in the East, Whitefield witnessed a marginal price increase of five per cent owing to the heavy traffic jams around the corners. Localities likes CV Raman Nagar, Indira Nagar, HBR layout witnessed a moderate growth of nine per cent to 10 per centin this quarter.
• Absence of social and physical infrastructure led to a dip in land values in Hoskote. Whereas,availability of large land parcels and affordable property prices drew attention towards Gunjurand BTM Layout Stage II. New project launches within a budget of Rs 25-30 lakh led to increased demand, and hence, a price hike of seven per cent in Gunjur.
• Located close to Jayanagar and JP Nagar, Uttarahalli was preferred by homebuyers due to affordable property values. Availability of large tracts of BDA approved land was a major attraction for investors here. The property prices went up by 15 per centin Uttarahalli.
• In North and West, Hennur Road (15 per cent), Nagavara (15 per cent)and Mysore road (12 per cent) witnessed maximum growth in the current quarter. Hebbal followed with a marginal growth of five per cent.
• Hormavu in North, located close to HBR Layout and Rammurthy Nagar, recorded robust housing demand due to lower property prices in comparison to nearby areas.
• Several northern region localities falling around the Bellary Road, such as Vidyaranyapura, Yelahanka, RMV Extension, Thanisandra and Jalahalli recorded dipping property values in the range of two per cent to 11 per cent.

Rental Analysis:
The rental market in the city remained robust withmetro significantly impacting the lease rates inseveral localities. On an average, the rental ratessaw an appreciation of 16 per centbetweenOct-Dec 2014 and Oct-Dec 2013.While the rental values in East and South Bangalorerecorded a growth of 15 per centeach in the last one year, the ratesin North went up by 17 per cent. Yeshwanthpur andSahakara Nagar were the top gainers in the rentalmarket due to improved connectivity by the thirdreach of Namma Metro.
Supply Analysis:

• Availability of Different Types of Property- The distribution of various property types such as apartments, builder floors and independent houses/villas remained unchanged in the current quarter as compared to the previous quarter. While apartments were the most supplied and constituted much more than three quarters of the total market, independent houses/villas were the next most supplied and made up 13 per centof the market share.
• Availability of Property in Different Budgets- Between all budget categories, the affordable housing segment within Rs 40 lakh and the middle income housing segment of Rs 40-60 lakh made up more than half of the total market share in this quarter. The next most supplied budget segment, high-income housing accounted for 25 per cent of the market share. The luxury and ultra-luxury segments recorded a supply of 13 per cent and four per cent respectively.
• Ready to Move vs. Under-construction- Majority properties (70 per cent) on sale in the city were ready to move in. The rest (30 per cent) were under construction, indicating suppressed new launches.The city saw least number of properties being constructed in the luxury housing segment (Rs 1 crore - Rs 2 crore) and the ultra-luxury housing segment (Rs 2 crore - Rs 5 crore).
• BHK-wise Distribution of Property- In terms of configurations, 2BHK units made up more than 50 per cent of the total market. 3BHK units closely followed by recording almost 40 per centsupply. The distribution of various configurations remained unchanged over the period of July and December 2014.

Residential Land:

• With Cisco aiming to convert Electronics City into a Smart City in the future and Asia&rsquos first Internet of Things (IoT) innovation hub, demand for the southern region localities has gone up significantly.HSR Layout alone recorded 14 per cent hike in land values in this quarter.
• Other localities which fared well due to availability of BDA plots were Koramangala and Banashankari by 12 per cent and 13 per cent respectively. Jayanagar too recorded a 13 per cent hike due to paucity of land parcels
• In North, Yelahanka at 46 per centhas emerged as the top grosser for price appreciation of residential land in the Oct-Dec 2014 quarter, followed by Chikkaballapur which recorded second highest increase of 25 per cent. On the other hand, Hoskote in the East and Sahakara Nagar in the North recorded the steepest dip to the tune of 29 per centto 30 per cent

About 99acres.com:

Launched by Info Edge, in September 2005, 99acres.com is a gateway to the one of the fastest growing property markets of the world, an information 'exchange' for buying, renting and selling of all types of residential and commercial properties anywhere in India. The website enables easy access to a huge property bank and allows direct connect with brokers/builders in cities as well as remote parts of the country. With over 6 million visitors visiting the website every month looking for real estate solutions, 99acres.com regularly enjoys the highest traffic share, time spent on site and maximum page views, making it the most popular real estate portal in the country. Backed by a strong team and a network across 17 cities in India, 99acres.com has garnered faith and support of the real estate community in India within a very short time span.

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