Localities with maximum property price appreciation in Bangalore City

Localities with maximum property price appreciation in Bangalore City

Localities with maximum property price appreciation in Bangalore City

Over the past 12 months, property market in India has been influenced by RBI moves to increase benchmark lending rates at repeated intervals. Efforts to tame inflation are having a dampening impact on interest rates sensitive sectors including automobile & real estate. The property transactions in major metros have dropped by 20-35% from the levels of last year. High prices and even higher interest rates are keeping the buyers guessing between buying and not buying a house. However within this scenario there are many localities where property prices have appreciated and continue to be on a rise.

In an attempt to capture the market sentiments and ascertain the pockets that are driving the growth in Bangalore estate sector, Makaan.com, the fastest growing website by People Group conducted a research on areas that have appreciated the most in the last one year. The objective of the study is to identify gems in an otherwise subdued Bangalore property market.

The research for Bangalore was conducted among 157 localities. We represent here the top 8 areas that have beaten all localities and have appreciated the maximum over the 12 months period. Indira Nagar, a popular locality in Bangalore Central, witnessed the maximum price appreciation across Bangalore. The per squre feet (psf) property prices in the area went up from Rs- 6,915 in January – August 2010 to Rs. 10,886 in January-August 2011, a whopping 57% growth. Brookefields came next with an increase of 49%. The real estate prices in this locality went up from Rs.2,648 in January to August 2010 to Rs- 3,942 in the same period this year. Other localities in the Bangalore top list are Hebbal, Kalyan Nagar, Banashankari. Electronic city, J P Nagar and Uttarahalli, These areas experienced price appreciation in the range of 27% - 48%. It’s interesting to know that majority of the areas in the list come from Bangalore South. (You can refer to the table below for the details analysis.)

Subcity Locality Avg Capital Value
(psf)
(Jan-Aug 2010)
Avg Capital Value
(psf)
(Jan-Aug 2011)
Percentage Change
Bangalore Central Indira Nagar 6,915 10,886 57%
Bangalore East Brookefield 2,648 3,942 49%
Bangalore South Banashankari 4,118 6,103 48%
Bangalore South Electronic City 2,791 3,880 39%
Bangalore North Kalyan Nagar 2,948 4,084 39%
Bangalore South Uttarahalli 2,066 2,778 35%
Bangalore South J.P. Nagar 3,846 5,057 32%
Bangalore North Hebbal 2,857 3,624 27%

Commenting on the findings Aditya Verma – COO, Makaan.com says, “Owing to policy changes announced by RBI, property prices in top real estate markets in India have moved in a narrow range over the past 12 months. However, there are pockets within each market that seems to have bucked this trend. The purpose of this research was to identify areas that have outperformed even during tough macro environment. We hope, consumers will be able to benefit from the analysis.”

Makaan.com conducted similar research for the top 4 real estate markets of Delhi, Mumbai, Hyderabad and Pune. The objective was to identify price drivers in each of these markets over the last 12 months (from January - August’10 to January - August’11).

Disclaimer: The research is based on historical prices. It cannot be used to predict price movements in future since all the factors, which have a bearing on property prices as well as their impact, cannot be adequately assessed in advance. The research reflects the overall price movement at the locality level. Individual properties within a locality may show a different pattern than the locality depending on their proximity to important landmarks, amenities, age of building etc.

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