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 Indicators

Relative to prior period 2014 2014 2015 2015F

Market Q3 Market Q4 Market Q1 Market Q2

CAPITAL RATE

NEW PROJECTS

CONSTRUCTION

RENTAL RATE

MICRO MARKETS CAPITAL VALUES

(INR PSF)

% CHANGE

QoQ YoY

Market Trends

BENGALURU | RESIDENTIAL

Average Capital Value Trends

Source: Colliers International India Research

Average Rental Values

Source: Colliers International India Research

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.

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.

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.

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.

Senior Manager

Residential Services| Bengaluru

shri.hari@colliers.com

Colliers International (India)

Property Services Pvt. Ltd.

Prestige Garnet, Level 2, Unit

No. 201/202, 36 Ulsoor Road

TEL +91 80 4079 5500

National Director

Residential Services

sumit.jain@colliers.com

Manager

Research Services

sachin.sharma@colliers.com

National Director

Valuation & Advisory

Services and Research

amit.oberoi@colliers.com

Director

Residential Services| India

arvind.kapoor@colliers.com

Associate Director

Research Services

surabhi.arora@colliers.com