Bangalore’s real estate story is closely linked with its Information Technology story. The economy of the city which is also known as the “Silicon Valley” of India is primarily dependent on the IT sector. The city houses many localities which are hot beds for IT/ITeS companies. It is these areas which are primarily sought after among home buyers. The real estate values in these areas have spiralled and also plateaued depending on how the IT sector has done.
Bangalore remains one of the few markets in the country which has been mostly sheltered by the real estate drought experienced by most other markets. This is because the market here is driven by end users rather than investors so speculation is mostly negligible. And end users here mostly prefer areas which are employment generators like the ones which have IT Parks and Special Economic Zones https://luxurylifehomes.com.
One such micro market which has thrived because of the IT sector is Electronic City. It is located in the southern part of the city in the Anekal taluk of the Bangalore Urban district. It is considered to be one of the biggest IT Parks in the country as it covers an area of 332 acres. IT giants such as Wipro, Tech Mahindra, Hewlett-Packard, Infosys and Patni are just some of the names present here. There are over one lakh people who work out of Electronic City. The demand for flats in Electronic City comes mostly from those who are employed in the IT/ITeS companies.
The going rate for properties such as flats in Electronic City stands at INR 3800 per square feet on average. In the first quarter of 2010 the going rate stood at INR 2500 per square feet. From there the prices went up steadily and stood at INR 3500 per square feet in the second quarter of 2011. The prices dropped and again came back to the INR 2500 per square feet range by the last quarter of 2011. From then on the prices have been inching upwards. One of the reasons attributed for this drop in the prices is the global economic slowdown and its subsequent impact on the IT industry. Since most of the buyers here belong to that industry, they did not want to buy homes anymore. This situation lead where the supply was much more than the demand. But the industry is slowly but surely recovering and this might spell good news for the realty industry here as well. Those who are looking to purchase properties such as independent houses in Electronic City can do so now since things are looking up here.
The most preferred budget range for properties such as flats in Electronic City falls between INR 20 to 30 lakhs followed by the INR 10 to 20 lakhs range. The most preferred configuration for apartments here are 2 BHKs followed by 3 BHKs.