Property prices in Bengaluru’s peripheral areas have spiked as more and more young professionals are picking up properties closer to work.*
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With IT parks in opening in full swing and more and more young professionals entering the city, finding properties within the required budget and within the city is next to impossible. Furthermore the establishment of IT parks away from the city means travel time will be a lot more adding to Bengaluru’s existing traffic and pothole crisis, with already articles coming out of school busses being stuck in traffic for hours prior to reaching schools or rains preventing employees from reaching office due to heavy flooding.
A majority of the new workforce are looking at picking up properties within 1-5km from the workplace and because of this, property rates in an around IT parks, SEZs have started spiking. Case in point as per the article, Mahadevpura which had a land price of Rs. 5k-6k/sqft between 2018-2019 has seen a 20% jump to approx. Rs.8k/sqft. Yelahanka is no longer a township but a bustling cosmopolitan area where the price of land was at Rs. 8k/sqft now values at around Rs. 11k/sqft
This spike in land prices may look like a real estate bubble about to burst however we’ve been witnessing these so-called bubbles from 2016 onwards and every time there’s a real estate bubble implying it will explode; meaning land and property rates will come crashing down, it doesn’t.
