Job creation spurs Bangalore’s luxury home market

INDIA: India’s information technology capital, Bangalore, has now topped the country’s luxury home market spurred by the consistent job creation.

According to Om Ahuja, Jones Lang LaSalle India’s chief executive officer of residential services, one of the major factors driving real estate in Bangalore is the consistency of job creation, which surpasses all other Indian cities.

“In the last decade, even after a serious slowdown in national and international economic growth, Bangalore has been consistent in generating the highest number of jobs for engineers and management graduates among all the cities in India,” he said.

Om said Bangalore is a growing city, both in terms of geographical expansion and in providing livelihood to educated young Indians. Yet it has not lost its quotient for lifestyle attractiveness

In terms of luxury housing, Bangalore is impressive with areas that can be defined as upper market in terms of cultural richness and density of wealth.

Om said residents of Vittal Mallya Road, Richmond Road, Ulsoor Road, Sadashvinagar and by-lanes of Cunningham Road have always cherished the experience of living in independent houses.

“While these houses are now giving way to apartment buildings, these locations still retain their profile of addresses that shows status and prestige,” he said.

“Indiranagar and Koramangala are the preferred destinations of first-generation rich entrepreneurs who value evolved lifestyles that do not require them to compromise on space. Bangalore’s elite groups continue to prefer these locations over moving into newer areas that offer comparable lifestyle quotients but lack the charm they are accustomed to,” said Om.

Currently, the rates for residential properties in Vittal Mallya Road range from  27,000 rupees (RM1,444) to 30,000 rupees per sq ft (psf) in Sankey Road.

According to Om, considering the limited supply now and in the foreseeable future, the locations are extremely high premium with no supply overhang whatsoever.

A luxury apartment in Indira Nagar and Koramangala is still an attainable reality, with prices ranging from 9,000 to 12,000 rupees psf. No other premium locations in other major Indian cities offer such prices in the luxury segment.

“Bangalore’s latest luxury home destinations evolved primarily in areas close to Satya Sai Ashram and the International Tech Park or Whitefield. Established developers such as Adarsh, Chaitanya, Presitge and Total Environment built lavish lifestyle villas in this area which offers the serenity and space that Bangalore’s wealthy look for in luxury homes,” Om said.

Reasonable prices for luxury homes of excellent construction quality in posh locations reflect a long-standing market reality in Bangalore as it has always been driven primarily by genuine end-users, he said.

“The residents of this city do not accept substandard products and have always valued high levels of quality that are not available in most other cities,” Om said.

Investor activity is still high as it is reflected in the escalating prices in North Bangalore, specifically in areas such as Hebbal and Yelahanka, where the action is high.

However, considering the predominantly healthy market and the superior offerings involved, these areas and their adjacent locations are still reasonably priced, offering a generous lifestyle and ranking very high in capital value appreciation, said Om. — By Haziq Hamid

This article first appeared in The Edge Financial Daily, on April 25, 2014.

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