Bangalore is clearly doing something right. The Garden City is witnessing a flurry of transactions in its luxury real estate segment, with some having set new records in the last few days. Here’s mapping the phenomenon.
In line with our focus on the resurgence of the ultra-luxury and luxury housing markets throughout India, Bangalore makes for a fascinating case study. Why Bangalore? Because it has remained India’s Silicon Valley and the hub of the IT and ITeS sectors throughout the pandemic and beyond. Because it has become one of India’s biggest start-up hubs. Because it has numerous employment opportunities and favorable growth and infrastructural development parameters, naturally creating skyrocketing housing demand.
That’s a lot of reasons; in fact, Bangalore was a little subdued earlier in comparison to flashy luxury purchases in property markets like Mumbai and New Delhi for instance. Not anymore. Big-ticket real estate deals are making their presence felt in Bangalore, signaling that luxury housing will take up a major chunk of sales figures, demand and new launches in 2022 and onwards.
Bangalore Realty Sets New Record
What is interesting is that Bangalore has set not one but two records in recent times. A Lavelle Road ancestral bungalow sold for a whopping Rs. 27.5 crore for 4,300 sq ft as per reports. The price of the bungalow thus equates to a gargantuan Rs. 64,000 per sq ft which is a new benchmark in the city. Built-up area stands at 6,000 sq ft for the landmark bungalow. Land values along the tony Lavelle Road were roughly Rs. 40,000 per sq ft even 4-5 years back as per reports.
Another deal that is making headlines is the resale of an apartment measuring a huge 8,321 sq ft at Kingfisher Towers along the posh Vittal Mallya Road. This apartment was sold for Rs. 35 crore. The final price is not the point here; the per sq ft rate is! It stands at a sizable Rs. 42,000 per sq ft which is a new benchmark in this category. It clearly shows how the luxury real estate market has bounced back strongly from the COVID-19 pandemic. The ultra-luxurious and well-known Kingfisher Towers are a part of the UB City development and has a limited number of exclusive apartments in a strategic location. The tower goes up to 34 storeys and spans 4.5 acres in total. There are 81 apartment units covering three blocks at this project. The towers have been built on the site of Vittal Mallya’s ancestral home in Bangalore.
Prestige Group has already sold its share in the project, i.e. 41 luxury apartment units. The venture was inked jointly between the leading real estate developer and Vijay Mallya in the year 2010. The launch took place 14 years earlier with an initial price of Rs. 22,000 per sq ft. The Embassy Group is no stranger to record deals as well, selling an apartment to the Chairman and Chief Executive, Quest Global, Ajit Prabhu, for a whopping Rs. 50 crore in 2017. This was Bangalore’s biggest residential transaction. The 16,000 sq ft apartment was sold for Rs. 31,000 per sq ft at the Embassy One project in proximity to Hebbal. However, the two new deals have broken this record and that too in succession!
Bangalore’s Increasing Appetite for Luxury Properties
In fact, Bangalore is witnessing sizable traction for plots priced at even a few crores in several locations. Bigger is now better, as buyers seek larger homes with more amenities and open spaces along with greenery. Branded real estate players are also ruling the roost especially in the luxury or ultra-luxury categories. In fact demand has hit the roof for luxury villas in Bangalore.
The new form of luxury in Bangalore is the luxury villa within a price point of approximately Rs. 10-30 crore. Buyers prefer exclusivity and privacy in gated communities with all the amenities that they desire, complete with sustainable features like water recycling and more. Buyers in this category are seemingly looking for living experiences akin to private islands, complete with self-sufficiency and environment-friendly features. Prices are also increasing for plotted developments in several parts of the city and its outskirts. For the moment, luxury villa transactions are dominating the space, particularly for their serene surroundings, top-notch security features, and most importantly, the sense of space that luxury buyers desire today.
