Bengaluru, popularly known as Bangalore, is the IT capital of India. It is located in the southern state of Karnataka. Bengaluru is nicknamed ‘Garden City’, ‘Silicon Valley of India’, ‘High-Tech City’, ‘Pensioners’ Paradise’, ‘IT-BT City’ and so on. The city of Bangalore has become one of the main hubs of employment in India. Bangalore boasts of having the highest employment rate in India as scores of blue collar workers head to the city. According to a report, “BetterPlace blue-collar job report,” out of the estimated 120 million, 7-8 million blue-collar workers move to Bengaluru in search of a job.
Owning a house is everyone’s dream. With the urban population rising each day, it is only going to get tougher and tougher to own a house, especially in the popular metros. Metro cities are where most jobs are found and the real estate prices have risen considerably over the last decade. Metro cities are usually those cities that have a population of more than 50 Lakhs.
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Bengaluru dates way back to the 16th century. The city was founded by Kempe Gowda and was initially named ‘benda-kaal-uru’ which literally translates to ‘the city of boiled beans’ in Kannada. Bangalore was the first Asian city to receive electricity. Unlike other metros in India, Bangalore was not structured and developed by the British. Bangalore grew in the post independence era.
Bangalore was declared the capital city of Karnataka, the then called Mysore state, post independence. Bangalore’s population has increased a whopping 40% between 2000 and 2010.
The growth of Bangalore is not just because of the IT boom. In fact, Bangalore became a major job hub during the 70’s and 80’s. Bangalore houses research and development centers of the public sector institutions like HAL, BEML, BEL, BHEL, DRDO and LRDE. These public sector institutions were set up way before the IT sector took over the place. More than 1 Lakh workers left their home towns to relocate to Bangalore to find jobs at HAL, BEML, BHEL and BEL. This was the first instance when Bangalore saw a huge rise in population.
Texas Instruments, TI, chose Bangalore to establish a research and development center in India. This had a cascading effect in the United States. Texas Instruments chose Bangalore as it already housed major public sector R&D centers. TI’s move paved the way for other US based IT companies to open divisions in Bangalore. You are bangalored when you get fired from your job, because it was outsourced from the US to Bangalore.
Adding to this, Bangalore and the state of Karnataka had quality higher educational institutions like IISc, BMSCE, UVCE and so on. It was easy for the new research and development based companies to find talent. This was one of the main factors that got the IT sector to set up base in Bangalore over other Indian cities.
Infosys was initially set up at Pune and later moved to Bangalore. Same goes with Wipro; it was founded at Amalner and moved to Bangalore. Bangalore Bureaucrats set up Electronic City in the early 1970’s in South Bangalore. An information tech park was built by collaborating with Singapore in the 1990’s, General Electric and SAP are still based here. Motorola, based in Bangalore, got CMM5 certification in 1990’s, it was the first of its kind outside USA and only the 6th in the World.
This made many tech giants in the West consider Bangalore as a location to set up low cost and high quality centers. When India opened its gates to businesses in the early 90’s post LPG (Liberalization, Privatization, and Globalization) and the global demand for technology fueled by the Internet and digitization grew, Bengaluru was ready to meet global standards. Bangalore saw more than 10 Lakh individuals flocking to the city, between 1985 and 1995, from all parts of the country hoping to get employed at one of these IT companies.
Today, the city of Bangalore is the third most populated city in India. With high population comes high real estate price. The high real estate price of Bangalore has made the dreams of mid and low income individuals to own a house in Bangalore a tough one.
This is a very simple and requires no deep thinking. If the demand of an item is high, then the price of the same is high. Same thing applies to the real estate as well. With population increasing each day, more and more people want to buy or lease a house. Bangalore was never planned to grow this big, and is facing difficulties in accommodating the people and the real estate prices have seen a steep rise over the last decade.
Jobs are one of the most important factors driving the price of real estate. With Bangalore being the most important job hub in India, it has seen a steep rise in the real estate prices. Bangalore’s IT sector is booming since its inception and you can expect the real estate price to increase in the days to come. The more varied the job opportunities are, the more resilient it makes the real estate market in that area.
The commercial or office space demand is generally considered an indicator of the strength of the job market. Higher the office space taken up in a region, the stronger the residential and commercial market would be. Vikaash Khdloya, Deputy CEO & COO, Embassy Office Parks, said that rentals in Bangalore grew at around 10 per cent CAGR over the last five years. He said "Bangalore, in fact, continues to be one of the best markets in terms of numbers globally,”
Infrastructural development is a major consideration for home seekers. A location or a region with reasonably good infrastructure has a higher perceived value and property prices rise. Facilities like accessible roads and public transport are known to raise the real estate prices considerably. For example, if a metro rail project is announced, then the localities along the route would benefit immensely thereby increasing the real estate prices.
Social infrastructure like proximity to schools, hospitals and retail stores would increase the property rates. A suburban rail worth Rs 19,500 Crores may come up by 2025, boosting property prices.
Prevailing home loan rates have an effect on real estate prices. When interest rates for home loans are high, it reduces the demand for property as borrowers are reluctant to spend. Similarly, when interest rates are low, the demand for real estate increases.
Certain regulatory factors like zoning regulations have a considerable impact on real estate prices. If zoning regulations bind the amount of construction in an area, then the overall allure of properties rise vis-a-vis open spaces, greenery and so on.
Well, this question can be considered a vague one as the question is incomplete. The cost of a house depends on various factors that are mentioned below:
Top localities in South Bangalore:
Top localities in North Bangalore:
Top localities in Central Bangalore:
Top localities in East Bangalore:
Top localities in West Bangalore:
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