Bengaluru, often hailed as India’s Silicon Valley, has undergone a remarkable metamorphosis in its residential real estate sector over the past few decades. This transformation has been fueled by a multitude of factors, ranging from rapid urbanisation to the influx of IT professionals, coupled with improved infrastructure and favourable government policies.
Housing sales in Bengaluru went up 29 per cent to 63,980 units in 2023 from 49,480 units in 2022. At the heart of Bengaluru’s residential real estate boom lies its status as the technology hub of India. However, it is also pertinent to note that both mid-market (INR 50 Lakh-75 Lakh) and premium segments synergistically fueled 23% each of the sales momentum in 2023.
The demand was primarily driven by an increasing return to office in the IT/ITeS sector and expansion of global firms and Global Capability Centres (GCCs) along with setting up of new ones. In addition, the quality supply brought in by prominent developers pushed up the sales in these cities to a large extent.
Further, the city’s allure as a breeding ground for innovation has attracted a myriad of multinational corporations, start-ups, and research institutions, drawing in a steady stream of skilled professionals from across the nation and beyond. This influx of talent has created a robust demand for housing, particularly in proximity to major IT parks and tech campuses, thus igniting a flurry of construction activity in these coveted locales.
Moreover, Bengaluru’s reputation as a livable city, characterised by its pleasant weather, verdant green spaces, and vibrant cosmopolitan culture, has further bolstered its appeal among prospective homebuyers. Families and individuals alike are enticed by the city’s dynamic lifestyle, stellar educational institutions, and diverse culinary offerings, making it an ideal destination to lay down roots and call home.
Infrastructure development has served as a cornerstone in nurturing the growth of Bengaluru’s residential real estate market. The city has witnessed substantial investments in its road networks, metro rail connectivity, and other public transportation systems, thereby enhancing accessibility and connectivity across various micro-markets. This improved connectivity has not only expanded the housing options available to residents but has also paved the way for the emergence of burgeoning suburbs and satellite townships, catering to the evolving needs and preferences of urban dwellers.
Government initiatives and policy reforms have also played a pivotal role in catalysing the real estate boom in Bengaluru. Programs such as the Smart City Mission and Housing for All have incentivised developers to invest in affordable housing projects, thereby catering to the diverse socio-economic strata of the population.
Furthermore, the implementation of the Real Estate Regulation and Development Act (RERA) has ushered in an era of transparency and accountability, instilling confidence and trust among homebuyers and investors alike.
The advent of co-living and co-working spaces has introduced a new paradigm to Bengaluru’s residential real estate landscape, catering to the burgeoning demands of a dynamic workforce.
With the proliferation of the gig economy and the growing prevalence of flexible work arrangements, there has been an upsurge in the demand for shared living and working spaces tailored to the needs of young professionals and entrepreneurs.
Developers have adeptly seized upon this trend by offering innovative solutions that seamlessly integrate affordable housing with an array of amenities, ranging from high-speed internet connectivity to community events and wellness facilities, thereby redefining the notion of modern urban living.
Furthermore, the availability of diverse financing options has democratised homeownership, making it more accessible to a broader segment of the population. Banks and financial institutions have rolled out enticing home loan schemes with competitive interest rates, while the advent of alternative financing models such as peer-to-peer lending and crowdfunding has provided additional avenues for funding real estate projects, further fueling the growth momentum.
However, amidst the euphoria surrounding Bengaluru’s residential real estate boom, it is imperative to acknowledge the challenges that lie ahead. The city grapples with issues such as urban sprawl, traffic congestion, and environmental degradation, necessitating a concerted effort towards sustainable urban planning and development.
Going ahead, Bengaluru’s residential real estate renaissance stands as a testament to its resilience, innovation, and dynamism as a city. The convergence of factors such as economic vibrancy, infrastructural development, progressive policies, and shifting lifestyle preferences has created a fertile ground for investment and growth in the real estate sector.
As Bengaluru continues to evolve and transform, stakeholders must collaborate synergistically to address challenges and seize opportunities, thereby charting a course towards a more sustainable and inclusive urban future.
-The author is founder & CEO, Property First. Views expressed are personal.
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