BENGALURU | RESIDENTIAL

Market Indicators
Relative to prior period

Market Q3
2014

Market Q4
2014

Market Q1 Market Q2
2015
2015F

CAPITAL RATE
RENTAL RATE
NEW PROJECTS
CONSTRUCTION

Bengaluru residential market strengthened during 1Q

2015 with resilient demand for both primary and
secondary market. Beside end-users Bengaluru also
witnessed demand from investors. In terms of absorption
Hennur Road, Panathur Road, Whitefield, Bannerghatta
Road and Yelahanka remained the most active micro
markets during the quarter.
There were few projects completed during this quarter
including Salarpuria Greenage by Salarpuria Group at
Hosur Road, Nitesh Caesars Palace by Nitesh
Developers at Kanakapura Road, LGCL Beautiful World
by LGCL Builders and Goel Orchids Woods by Goel &
Co both projects located at Hennur Road. These projects
were priced in the range of INR 5,000 7,500 per sq ft in
secondary market.
A number of projects were launched in 1Q 2015 in both
luxury and mid range segments; Prestige Developers
launched several new projects including Pinewood at
Koramangala, Prestige Woodland Park at Cooke Town
in the price range of INR 10,000 11,000 per sq ft. and
North Point at Kammanahalli and Prestige MSR at
Mathikere were in the range of INR 6,750 7,000 per sq
ft.

Market Trends
MICRO MARKETS

CAPITAL VALUES
(INR PSF)

% CHANGE
QoQ

YoY

Apart from these projects several mid-range projects

were also launched such as Rohan Iksha by Rohan
Developers at Sarjapur Road, Raj Eternia by SNN
Builders at Haralur Road , Sobha Rain Forest by Sobha
Developers at Panathur Road, City of Gold by
Puravankara Developers at Kanakapura Road and
Nitesh Hunter Valley by Nitesh Developers at Off
Hennur Road. These projects were priced in the range of
INR 4,490 5,190 per sq ft.

Average Capital Value Trends

Capital values in 1Q 2015 rose averagely in the range of

2 7% QoQ in almost all the micro markets, barring
micro markets like Palace Orchard, Airport Road,
Indiranagar, Koramangala, Whitefield and Yelahanka
where capital values remain unchanged.
In order to decongest Outer Ring Road (ORR), the
Bangalore Development Authority ( BDA) is planning to
build about 25 skywalks across the road. The
development of these skywalks will happen at all the
junctions in a phased manner.

Source: Colliers International India Research

Average Rental Values

Colliers View
During the last quarter, pre-launch offers by prominent
builders have received a good response. The steadily
growing interest in pre-launch projects is a indication of
increased long-term investor participation in the
Bengaluru real estate market. Supply is complementing
the demand in almost all the markets thus, we expect a
marginal increase in capital in near term. Similarly, rents
are also expected to increase marginally due to
increased demand.
Source: Colliers International India Research

National Director
Residential Services
sumit.jain@colliers.com

Senior Manager
Residential Services| Bengaluru
shri.hari@colliers.com

Director
Residential Services| India
arvind.kapoor@colliers.com

Associate Director
Research Services
surabhi.arora@colliers.com

Manager
Research Services
sachin.sharma@colliers.com

Colliers International (India)

Property Services Pvt. Ltd.
Copyright 2015 Colliers International.
The information contained herein has been obtained from sources deemed
reliable. While every reasonable effort has been made to ensure its accuracy, we
cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.

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TEL +91 80 4079 5500

National Director
Valuation & Advisory
Services and Research
amit.oberoi@colliers.com