The real estate and economy in Bangalore is fast-growing. As per Oxford Economics, Bangalore is predicted to be the fastest-growing city in the Asia-Pacific, competing with cities like Tokyo, Hong Kong, and Beijing. Economic growth directly correlates to the rise in demand for houses for rent in Whitefield, Electronic City, and Koramangala. It is a testament to the fact that there is a surplus of IT employees migrating here to work from the office space. In 2022 alone, the city had around 10.6 million square foot A-Grade assets. The growth prediction is exponential.
In the city, areas like Whitefield ranks 3rd amongst the rental localities in the country, with popular gated societies like Maithri Layout and Sathya Sai Layout. The real estate market is extremely dynamic in Bangalore. The city is constantly ranked among India's top real estate investment destinations. Strengthening economic growth has led to a better quality of life and job opportunities. The market is predicted to be stable and will have higher rental yields in 2023. The rapid growth in Bangalore's economy in the upcoming years strengthens the real estate market. The government is also looking to improve the infrastructure and inter-city connectivity.
The rapid economic growth of Bangalore in 2023:
Post Covid-19, India's Silicon Valley has gotten back on its feet and is in full swing. Bangalore is likely to outperform major cities like Beijing this year in terms of economy, with a growth of over 6%. There are many benefits of the rapid economic growth in Bangalore, and the following are a few outcomes of this urbanisation:
Growth in opportunities: The information, communication, and manufacturing sectors in Bangalore will rapidly grow in 2023. It is leading to a rise in work-from-office opportunities due to large infrastructure development. Many individuals from other parts of the country migrate to Bangalore for the same reason. Top IT companies like Amazon, SAP, and Samsung are setting up bases here, further leading to its rapid development.
Rise in Rental Home Demands: The demand for houses for rent in Whitefield in layouts like Maithri Layout and Koramangala in layouts like AVS Layout and KEB Layout is rising due to the migration of individuals from other cities. Due to the rapid demand for housing, there is an increase in rental rates by 12%. The landlords are trying to meet the surge in demand and simultaneously trying to overcome the pandemic losses. The tenants looking for houses are willing to pay the rental price to fulfil their immediate need for a home. Most tenants are looking for 1BHKs or sharing apartments near their workplace. The city has good transportation connectivity like Metro, BMTC buses, and road connectivity, which are the top attraction factors for tenants to rent homes in the city. It allows them to travel to their workplace easily, which is often an element of concern.
The Climb in Interest of Investors: The economic growth in infrastructure and transportation has increased the interest of investors in the IT sector and manufacturing sectors. Apart from them, even residential real estate investors are interested in the Bangalore market. The city is ideal for Information Technology and Manufacturing Industries as there will be more migrants moving in for prospective job opportunities.