Bangalore is considered a haven for luxury real estate especially since the realty market here is largely driven by IT professionals who are welltravelled all across the world. They demand better lifestyle and state-of-art amenities. Thus, considering high demand for such projects, CommonFloor has analysed the luxury real estate market in Bangalore.

 As per data, from 2010 till date, there has been an overall decline in the number of new launches across segments in the city. And luxury segment was no different. However, the drop in new supply was not as much as that of mid and upper-mid segments.  Possibly, the declining numbers of new luxury supply suggest that rather than launching new projects builders are now focussing on completing their previously launched ones.  Moreover, luxury properties focus more on quality rather than quantity.

“

“ Luxury is defined by the style that is added to one’s life.

Market Segmentation of New Launch Projects (2010–15) Affordable 100%

5% 21%

Mid-segment 6% 18%

7% 15%

Upper Mid Segment

Luxury

5%

4%

4%

13%

15%

15%

28%

27%

24%

53%

54%

57%

2013

2014

2015

75%

34%

33%

30%

50%

25% 40%

43%

2010

2011

49%

0% 2012

Source: Real Insights @ CommonFloor.com

In this report, luxury properties with ticket price over Rs 2 crore has been considered for both apartments and villas.

Zone-wise Distribution of Luxury Projects 31%

EAST ZONE

58%

Data indicates that east Bangalore has maximum availability of luxury projects, both for apartments and villas. Areas like Indira Nagar, Whitefield, ORR-Sarjapur Road top the list of luxury markets that witnessed maximum new launches from 2013 onwards. Indira Nagar is already a well-established posh residential market while luxury properties in Whitefield and ORRSarjapur Road are seeing demand from the CXOs of IT/ITeS sectors. These are well-travelled professionals who prefer to live king size. Moreover, these areas still have vacant land for further development and offer good social infrastructure facilities coupled with various physical infra upgrades including Metro link in Whitefield.

NORTH ZONE NORTH ZONE

EAST ZONE

WEST ZONE

SOUTH ZONE

800

SOUTH ZONE

Project Launched in 2013 2014 2015

CENTRAL ZONE

20%

The zone witnessed 20 per cent of the overall new luxury projects supply comprising of apartments only. The areas here command high prices primarily for its location. As expected, due to scarcity of land the new projects launched were mostly smaller in size comprising of less than 55 units per project on an average. The key localities here include Vasantha Nagar, Cox Town and Frazer Town.

20%

North Bangalore also witnessed good supply of luxury projects from 2013 onwards. The top markets include Yeshwanthpur, Yelahanka, and Sadashiva Nagar. With ample space available, Yelahanka witnessed the launch of several large-size luxury properties whereas Yeshwanthpur topped the list of maximum project launches with state-of-art amenities.

CENTRAL ZONE

Project Size – No. of Units

26%

22%

20%

Top markets in south zone include Banashankari, Koramangala and JP Nagar. Maximum projects launched here comprise of 180 units per project on an average. Buyers profile here essentially consists of entrepreneurs, HNIs and politicians.

WEST ZONE

1%

2%

Interestingly, west zone saw very minimal new launches in the luxury segment essentially because it is an industrial hub with more demand in the affordable category.

As per data, east zone witnessed maximum launches in the luxury segment between 2013 and 2015.

Top 5 Luxury Markets in Bangalore

1

Indira Nagar, already a wellestablished luxury destination, saw maximum new units supply of luxury properties which are small in size comprising of less than 70 units each. Moreover, the area witnessed no new launches in 2015.

2 3 4

Whitefield, a self-sustaining suburb of Bangalore, saw multiple luxury launches owing to high demand from IT/ITeS professionals who prefer to live close to their workplace. Other than residential and commercial spaces, the area also boasts of multiple retail and hospitality options. As per data, the area saw launch of many large-size projects at an average of Rs 7,500 per sq. ft.

Yeshwanthpur is one of the market with excellent connectivity to city centre via metro and road.

It is preferred by both the local Bangaloreans and young population alike.

5

Fraser Town is also a wellestablished residential destination with close proximity to MG Road.

Strategically located, Sarjapur Road is emerging as a preferred luxury hub owing to ample land available. It has good connectivity to IT hubs including Whitefield, Electronic City, ORR, and also Koramangala. As per data, the area saw launch of small and medium-size projects with state-of-art amenities and large-size units. The average price of luxury properties here is Rs 8,500 per sq. ft.

The Top 5 Markets in the luxury segment together contribute about 50 per cent of the total new launches between 2013 and 2015.

Year-wise Distribution of Luxury Apartments 2013

2014

2015

 As per data, Bangalore market  As per data, most  Unlike 2013, north and north-west Bangalore saw an overall decline in the luxury project launches saw maximum luxury launches in 2014. With number of launches across in 2013 happened in east better connectivity via metro and close proximity segments in 2015. And so zone dominated by IT hubs to the international airport, areas in this region was the case for the such as Whitefield and ORR saw increased supply in the luxury segment. luxury segment. There stretch. Besides good Moreover, there is ample land available for further were few luxury connectivity, both areas are in development in these areas. project launches close proximity to workplaces for this year which many. Interestingly, most launches  Further, south Bangalore continued to witness were largely here comprised of large-sized projects the launch of luxury projects owing to the confined to (more than 800 units each project). development of certain IT Parks in the region. the north Preferring to live in close proximity to workplaces, and south  Following this, south Bangalore also saw there was growing demand from CXOs and also eastern good number of luxury launches in 2013 that few local residents. part of comprised of projects having about 200 to 400 the city. units each. The prime localities were Jayanagar,  Interestingly, areas in central Bangalore Banashankari and J P Nagar which are already wellincluding Cox Town and Shanthi Nagar also established residential markets in this region. Global had few small sized project launches in the Village Tech Park at Rajarajeshwari Nagar could be one luxury segment. of the attracting factors for new launches here.

2013 onwards, there has been a decline in new launches in luxury category. This is essentially due to an overall dip in the launches across segments.

CommonFloor.com, Bangalore maxHeap Technologies Pvt Ltd Tower B, 4th Floor, Diamond District, #150, Old Airport Road, Kodihalli, Bangalore – 560 008 Authors Neha Saxena Senior Research Associate [email protected] Bangalore

Gautam Singh Rawat Senior Research Associate [email protected] Bangalore

Priyanka Kapoor Sr. Research Analyst [email protected] Bangalore

Meha Singla Associate Director -Domain Research (Real Estate) [email protected] Bangalore

Disclaimer: The document above is written by the Domain Research Team at Commonfloor.com, India’s fastest growing real estate website known for its unbiased prognosis in Real Estate sector. The information provided in this report is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps. It should be considered as a guideline and not in absolute certainty. While care has been taken for groundwork, no responsibility is accepted for the accuracy of whole or any part. This information is confidential and the sole property of CommonFloor.com. It should not be reproduced in any form, in part or whole, without prior permission.

Bangalore City Snapshot Q3 2015: https://www.commonfloor.com/wordpress/wpcontent/uploads/2015/10/Bangalore-City-Snapshot-2015-Q3.pdf