Bangalore’s Kaggadasapura Witnesses 38% Price Appreciation Over the Last three Years

The Bangalore real estate market has been one of the most resilient markets in the country. It has weathered the real estate storm faced by many other cities in the country. This market along with Chennai was one of the few markets which were stable through the rough patch experienced by the real estate sector elsewhere. In fact these where the one among the few markets which even experienced some amount of growth.

The focus of real estate growth in Bangalore has been moving towards northern and eastern Bangalore. The economy of Bangalore is largely dependent on the Information Technology and Information Technology Enabled Services sectors. Many IT parks are centred in or around these areas as there are large parcels of land available around these areas for relatively cheap rates. This growth of the IT/ITeS along with the automotive sectors does have a direct impact on the residential real estate segment of the micro markets located in these areas. Where there is commercial growth one can expect residential growth as well.

One of the areas which is experiencing such kind of growth is Kaggadasapura. This locality is situated in eastern Bangalore. It is surrounded by localities which are a mix of high income and middle income groups. There is Indira Nagar which is considered to be one of the poshest localities in all of Bangalore, Domalur, C V Raman Nagar, and Marathahalli.

Prices for properties in Kaggadasapura have been steadily appreciating over the last two years. Prices started to climb upwards from April 2011. The average price for properties in Kaggadasapura at that point stood at INR 2900 per square feet. The prices started moving up slowly and steadily from that point onwards. The rates peaked at almost INR 3200 per square feet and then plateaued to INR 3000 to INR 3100 from October 2011 to March 2012. From April 2012 the prices started going up and reached a peak of INR 3900 per square feet in January 2013. The prices again witnessed a slight dip in April 2013. From then onwards the prices have been steadily climbing up and have almost touched the INR 4000 per square feet mark. The property prices here have appreciated by almost 38% percent over the last 3 years alone which makes properties such as a 3 BHK flat in Kaggadasapura as a very viable option for both investment and end use.

The maximum demand is witnessed for 2 BHK flats in Kaggadasapura which are in the INR 30 to INR 40 lakhs bracket range. The most preferred unit size here is between 1001 to 1250 square feet. The average going rate here at the moment for properties such as a 3 BHK flat in Kaggadasapura is INR 3929 per square feet.

Currently the real estate climate of this micro market is coming across as being very positive. The prices here are still very much in the affordable category. One can pick up properties in Kaggadasapura now and see them appreciate over time.

Ranjitha is a freelance writer and blogger, following the Houses for sale in Bangalore and real estate sector closely for many years.