Bengaluru Residential Property Market Overview -May 2015
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Bengaluru residential market strengthened during 1Q 2015 with resilient demand for both primary and secondary market. Beside end-user’s Bengaluru also witnessed demand from investors. In terms of absorption Hennur Road, Panathur Road, Whitefield, Bannerghatta Road and Yelahanka remained the most active micro markets during the quarter. There were few projects completed during this quarter including “Salarpuria Greenage” by Salarpuria Group at Hosur Road, “Nitesh Caesars Palace” by Nitesh Developers at Kanakapura Road, “LGCL Beautiful World” by LGCL Builders and “Goel Orchids Woods” by Goel & Co both projects located at Hennur Road. These projects were priced in the range of INR 5,000 – 7,500 per sq ft in secondary market. A number of projects were launched in 1Q 2015 in both luxury and mid range segments; Prestige Developers launched several new projects including “Pinewood” at Koramangala, “Prestige Woodland Park” at Cooke Town in the price range of INR 10,000 – 11,000 per sq ft. and “North Point” at Kammanahalli and “Prestige MSR” at Mathikere were in the range of INR 6,750 – 7,000 per sq ft. Market Indicators Relative to prior period 2014 2014 2015 2015F Market Q3 Market Q4 Market Q1 Market Q2 CAPITAL RATE NEW PROJECTS CONSTRUCTION RENTAL RATE MICRO MARKETS CAPITAL VALUES (INR PSF) % CHANGE QoQ YoY Market Trends BENGALURU | RESIDENTIAL
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Transcript of Bengaluru Residential Property Market Overview -May 2015
Bengaluru residential market strengthened during 1Q
2015 with resilient demand for both primary and
secondary market. Beside end-user’s Bengaluru also
witnessed demand from investors. In terms of absorption
Hennur Road, Panathur Road, Whitefield, Bannerghatta
Road and Yelahanka remained the most active micro
markets during the quarter.
There were few projects completed during this quarter
including “Salarpuria Greenage” by Salarpuria Group at
Hosur Road, “Nitesh Caesars Palace” by Nitesh
Developers at Kanakapura Road, “LGCL Beautiful World”
by LGCL Builders and “Goel Orchids Woods” by Goel &
Co both projects located at Hennur Road. These projects
were priced in the range of INR 5,000 – 7,500 per sq ft in
secondary market.
A number of projects were launched in 1Q 2015 in both
luxury and mid range segments; Prestige Developers
launched several new projects including “Pinewood” at
Koramangala, “Prestige Woodland Park” at Cooke Town
in the price range of INR 10,000 – 11,000 per sq ft. and
“North Point” at Kammanahalli and “Prestige MSR” at
Mathikere were in the range of INR 6,750 – 7,000 per sq
ft.
Market Indicators
Relative to prior period 2014 2014 2015 2015F
Market Q3 Market Q4 Market Q1 Market Q2
CAPITAL RATE
NEW PROJECTS
CONSTRUCTION
RENTAL RATE
MICRO MARKETS CAPITAL VALUES
(INR PSF)
% CHANGE
QoQ YoY
Market Trends
BENGALURU | RESIDENTIAL
Average Capital Value Trends
Source: Colliers International India Research
Average Rental Values
Source: Colliers International India Research
Apart from these projects several mid-range projects
were also launched such as “Rohan Iksha” by Rohan
Developers at Sarjapur Road, “Raj Eternia” by SNN
Builders at Haralur Road , “Sobha Rain Forest” by Sobha
Developers at Panathur Road, “City of Gold” by
Puravankara Developers at Kanakapura Road and
“Nitesh Hunter Valley” by Nitesh Developers at Off
Hennur Road. These projects were priced in the range of
INR 4,490 – 5,190 per sq ft.
Capital values in 1Q 2015 rose averagely in the range of
2 – 7% QoQ in almost all the micro markets, barring
micro markets like Palace Orchard, Airport Road,
Indiranagar, Koramangala, Whitefield and Yelahanka
where capital values remain unchanged.
In order to decongest Outer Ring Road (ORR), the
Bangalore Development Authority ( BDA) is planning to
build about 25 skywalks across the road. The
development of these skywalks will happen at all the
junctions in a phased manner.
Colliers View
During the last quarter, pre-launch offers by prominent
builders have received a good response. The steadily
growing interest in pre-launch projects is a indication of
increased long-term investor participation in the
Bengaluru real estate market. Supply is complementing
the demand in almost all the markets thus, we expect a
marginal increase in capital in near term. Similarly, rents
are also expected to increase marginally due to
increased demand.
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed
reliable. While every reasonable effort has been made to ensure its accuracy, we
cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.
Senior Manager
Residential Services| Bengaluru
Colliers International (India)
Property Services Pvt. Ltd.
Prestige Garnet, Level 2, Unit
No. 201/202, 36 Ulsoor Road
TEL +91 80 4079 5500
National Director
Residential Services
Manager
Research Services
National Director
Valuation & Advisory
Services and Research
Director
Residential Services| India
Associate Director
Research Services
