North West Bengaluru : Fast-Growing Housing Property Prices, Key to Decongestion
In real estate, a macro-market typically refers to an expansive region within a city or state that is characterised by a specific geographic and demographic makeup. The patterns in demand and pricing in smaller segments, known as micro-markets, generally mirror those of the broader macro-market. Noteworthy real estate transactions and acquisitions since the pandemic have further solidified the region’s strong position in the residential market. For instance, a leading international retailer opened its third Indian store in Nagasandra, Bengaluru, in late 2022. Bengaluru’s most heavily populated macro-market is currently undergoing notable enhancements in connectivity.
The metro system, which already integrates this area with other parts of the city, positions North West Bengaluru favourably for accelerated growth in the near future. Furthermore, infrastructure projects amounting to thousands of crores are projected to increase the region’s allure. Specialists believe that this zone could potentially offer a remedy to Bengaluru’s substantial traffic congestion problems. Elevated market rents, compared to those in Outer Ring Road and Whitefield, have kept Bengaluru a strong landlord’s market. However, with emerging alternatives like North West Bengaluru, rental rates are expected to decline soon.
With superior connectivity infrastructure and better living conditions than many other macro-markets in the city, North West offers a unique chance to secure office spaces and take advantage of the current rental arbitrage, the report noted. Rental rates in the Outer Ring Road area have escalated at a quicker pace compared to those in North and North West Bengaluru. However, with robust infrastructure and cost-effective commercial spaces available, the report anticipates that rents in North West Bengaluru will climb by 6-8 percent per year over the next five years.
Given the current lease contracts, future rents in North West Bengaluru are projected to remain above the average office rentals in the North and Outer Ring Road regions for the next six years. Representing only 5 percent of the city’s ongoing office space development, North West will experience a limited influx of new supply over the coming five years. Major developers, such as DNR, Brigade and Prestige, are developing considerable assets for investors aiming to expand or relocate within the city, the report indicated.
