Published on Friday,
The incredible growth of the IT sector has transformed Bangalore from being a quiet and calm ‘pensioner’s paradise’ to a bustling and lively city attracting tourists and professionals alike. From being known for its peaceful green parks and colonial style homes, Bangalore has become the IT hub and earned itself the status of ‘Silicon Valley’ of India.
The IT sector has contributed a lot to the growth of the city by attracting huge investments, both from within the country and overseas. The appeal of a thousand job opportunities with blue-chip companies from all over the world has lead to a surge in the number of people opting to move to Bangalore.
One of the sectors that has benefited the most from the expansion of the IT sector in Bangalore is the real estate market.
1) The Past
The impact of the IT sector on the Real Estate Market in Bangalore began in the 1980s, with do-mestic firms like Infosys and Wipro setting up base camp here. However, the impact on the real estate market during this period was minimal.
But, by 1991-2000, due to the economic liberalisation and the various measures taken by the gov-ernment to attract foreign investments, the IT hub grew with the availability of skilled man power. The fact that a large number of institutions and research facilities already existed in Bangalore made sure that there was no lack of skilled human resources for the IT expansion to take place.
Soon, a large number of MNCs set up shop here and by 2008, Bangalore had become famous as an expanding IT city with very good opportunities for those in the industry. The increase in the population naturally resulted in a rise in the demand for housing and property. The areas around the IT sectors were especially in demand and the rising rents and asset values contributed to the growth of the real estate market in the city.
Between 1991- 1995, the areas in Bangalore that saw development in real estate were Jayanagar, JP Nagar, Koramangala, Indiranagar and BTM Layout. After the planning of Electronic City and other Tech cities, Marathahalli, Whitefield and other areas around these IT campuses became more popular.
Luxury apartments in Bangalore were the most sought after property because of the convenience of location and amenities it offered to those working at these IT offices. The higher income group preferred villas in Bangalore. Both kinds of properties were however considered good investments because of the rising demand, value of land and property around the developing and expanding IT parks.
2) The Present
The growth of the IT sector has stabilised today and continues to attracts lakhs of people from across India and the world, for investments and jobs. The city’s bustling and lively social scene also makes it one of the most preferred cities in India to settle in.
With each passing year, the number of companies opting for a branch in Bangalore or even setting up headquarters here only increases. The city has become home to a number of well funded start ups as well that promise equally good growth opportunities for students and young entrepreneurs. According to a BBC report of 2013, nearly 40% of the country’s IT industry is concentrated in Bangalore. Over the last few years, this growth has only increased.
3) The Future
The IT industry will continue to draw investments and crowds to Bangalore and this is a good rea-son for you to consider investing in luxury flats or plots in Bangalore.
An investment made at the right time could become something you can bank on for a lifetime. And Bangalore’s real estate market offers exactly the right opportunity for you. Invest today be-fore the prices appreciate!