Wednesday, March 13, 2024

South Bengaluru Is Thriving Investment Hub With 10.3% YoY Capital Appreciation And 26% YoY Surge In Rents: Magicbricks

According to Magicbricks’ recent “State of the Market” report, South Bengaluru (Electronic City, JP Nagar, Kanakapura and Bannerghatta) has emerged as a thriving investment hub in the city, demonstrating a significant capital appreciation of 10.3% YoY and surge in rents by 26% YoY between October and December 2023. Kanakapura stood out as the most price-sensitive locality with an impressive capital  appreciation of 18.66% YoY during this period.

Elaborating on the demand and supply dynamics in the region, the report highlighted that the residential demand increased 8.1% YoY, particularly in Electronic City, where the demand surged 21.23% YoY.  Furthermore, NRI interest surged by 13% YoY, particularly from the UK, marking an 81% increase. 

Simultaneously, while the residential supply contracted by 28.4% YoY, leading developers are actively investing in the area, signaling promising prospects for an upturn in supply. The report identified Provident Housing, Prestige Group and Mantri developers constituting the majority of the residential supply in the area.

Abhishek Bhadra, Head of Research, Magicbricks further elaborated “South Bengaluru presents lucrative investment prospects for those seeking long-term returns. With a steady uptick in demand, the region is also witnessing a surge in commercial activities, as developers expand their footprint in the region. Offering higher rental yields as compared to established areas of North Bengaluru, South Bengaluru presents the potential of becoming one of the top choices for homeowners in the coming quarters.”

The report also underscored buyers’ interest towards smaller configurations in South Bengaluru, as demand for 2BHK configurations increased from 45.7% of total residential demand in 2023, up from 36.6% in the same period last year. In contrast, the demand for 3BHK and bigger units reduced from 59.3% in October-December 2022 to 50.6% in October-December 2023. The report concluded that the leading asset class in Bengaluru is multistorey apartments, which is accounting for nearly 84% of the residential supply in the area.

About Magicbricks: India's no 1 property site 

As the largest platform for buyers and sellers of property to connect in a transparent manner, Magicbricks has monthly traffic exceeding 2 crores and an active base of over 15 lakh property listings. Magicbricks has metamorphosed into a full-stack service provider for all real estate needs, with 15+ services including home loans, pay rent, movers and packers, legal assistance, property valuation, and expert advice.

With 15+ years of experience and deep research-based knowledge, Magicbricks also presents a repertoire of insight-driven platforms like MBTV- India’s leading online real estate YouTube channel, and other proprietary tools so that home buyers can access all information related to price trends and forecasts, locality reviews and more.

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