Koramangala, in the south-eastern part of Bengaluru, is well-established and a popular residential destination. It has a well developed social and physical infrastructure and is known as the start-up hub of the city due to the presence of many budding entrepreneurial firms.
Residential real estate
development in Koramangala has improved gradually over the last few years as the location transformed into a commercial hub with solid infrastructure backing. The new housing supply addition was around 2,285 units between 2010 to the first quarter (Q1) 2018. As of Q1 2018, only 795 units here were unsold, indicating that there is good demand for residential properties in Koramangala. The current weighted average price of residential property in Koramangala is Rs 9,984 per sq ft, and prices have appreciated by 14 per cent during the last three years.
The double-digit price appreciation indicates that even during the times when the market was battered by subdued demand, structural changes and policy reforms, there was strong inherent housing demand in Koramangala. With limited supply infusion amidst good demand, the future of Koramangala's residential property market looks bright.
Koramangala is also ideal for investors looking at pre-lease properties. Prominent IT/ ITes occupiers show a preference for Koramangala, as do smaller corporates operating out of standalone buildings. This micro-market is in high demand for mid-range office spaces of sizes ranging from 20,000–50,000 sq ft and occupiers from the banking and financial services sector, corporate sales divisions and support services for IT/ ITesare always on the lookout for good offices in this part of Bangalore. Koramangala is a dependable market for office space demand because it is close to the central business district and due to its good connectivity to South Bangalore.
The writer is vice chairman, ANAROCK Property Consultants