Namma Bengaluru

Property Consultant JLL India and Royal Institute of Chartered Surveyors (RICS) have forecasted that Indian realty market will see a revival in 2016. Bengaluru, witnessing a real increase in realty, has emerged as the second most preferred destination for investors after Mumbai.

Mainly driven by private equity (PE) players, the demand for real estate is especially coming from the commercial real estate segment. Juggy Marwaha, Managing Director, South, JLL India says, “PE investors are attracted to Bengaluru, as it is a highly corporatised market with good quality tenancies. The IT firms pay decent rents, the lease terms are good and it’s a stabilised market where demand and supply has always been kept neck-to-neck.”

The increase in demand for commercial real estate doesn’t mean that there is a lack of opportunities for retail investors. Affordable commercial units in North Bengaluru can become potential good investments because of the large demand emanating from eCommerce businesses and startups in the area. Endorsing the prospects of North Bengaluru, Satish B.N., Executive Director, South India, Knight Frank India says, “North Bengaluru (Thanisandra and Hebbal) has better prospects than East Bengaluru (Whitefield and Brookfield), owing to better infrastructure and metro connectivity,”.

Over the last three years, the average price growth in Bengaluru’s residential areas, has been approximately around 23%, higher than the average price growth in other important real estate hubs such as Delhi NCR (18%), Mumbai (22%) and Pune (17%). A case for example would be Hebbal, which saw a 67% growth with average property prices rising from Rs 4,250 per sq. ft in 2012 to Rs 7,100 per sq. ft in 2015.

While the growth in residential properties is expected to be subdued in the long run, mid-range residential projects might become a positive exception. The price appreciation in the mid-range segment (Rs 3,500-5,000 per sq. ft) is high because of the demand and availability of customers in the market. Says Marwaha, “Owing to the new set of people joining the city’s IT brigade, the midrange segment is doing better than other project and investors can also looking at renting out the properties after purchase,”. Stating the potential growth of upcoming areas such as Thanisandra and Yelahanka in North Bengaluru, Marwaha added, “You can expect up to 35% price escalation in Thanisandra and up to 30% in Yelahanka, if you buy now and can hold for next 4-5 years. Other areas in the North such as Nagwara, Hoskote, Kanakpura are also good areas to invest in.”

Dubai Property Expo in Hong Kong

Hong Kong is all set to welcome the Dubai Property Show this week. The exhibition will highlight Dubai’s unrivaled opportunities for real estate investment. Dubai-based real estate developer Nakheel is heading east to showcase new projects with construction values of over $4.6 billion. With projects already covering more than 15,000 hectares and homes for over 200,000 people, Nakheel is the biggest developer at the show.

Nakheel promises to showcase a diverse range of new master developments, residential properties and retail and hospitality projects at the three-day carnival. Some of the projects on show include the 15.3 square km Deira Islands coastal city, luxury high-rise apartments in the 52-storey Palm Tower and high-end waterfront units at Azure Residences at Palm Jumeirah, and spacious three-bedroom townhouses at Warsan Village, a new, gated community located near Dragon Mart and Nakheel ‘s biggest master community, International City.

Ali Rashid Lootah, Chairman, Nakheel, said, “The Dubai Property Show is the best platform that highlights how investors in Hong Kong can be a part of the Dubai real estate success story, as end-users or just investment with a view to renting out,” adding that Dubai’s excellent transport, education, trade and leisure infrastructure entices people to live and work in the emirate. These people need accommodation, which means a huge demand for rental properties, allowing substantial returns on investment. We look forward to further strengthening our relationship with investors here in Hong Kong through this exciting event.”