Bangalore: Demand for residential space in prime locations of the city is expected to remain steady during the rest of this year and prices and rentals are likely to stay at their current levels with an upward pressure in certain areas.

With the take-off of the international airport project, Devanahalli and the route leading there are becoming favoured destinations of developers. North Bangalore is poised to become the key growth area with the thrust on Bellary Road, Yelahanka and Devanahalli. The proposed hardware park close to the airport location and the garment parks already coming up will help property developers.

In July-August, the residential property market witnessed strong end user and investor demand. It has been markedly so in the southeastern, eastern and northern regions of the city over the past six months. There has been an increase in apartment prices and land values in select suburban areas.

With various constraints in the form of strict building bylaws and ceiling on floor space index within the central business district, the city has gradually, but steadily extended towards suburban areas, where land prices are comparatively affordable.

The rise of capital values in peripheral areas is significant, say developers. Recently, a luxury apartment of 2,500 sq.ft., off Residency Road, sold for around Rs 1.7 crore.

Around the same time, a three-bedroom independent villa of 2,400 sq.ft. on a 2,600 sq.ft. plot near Marathalli sold for Rs. 1.2 crore.

Among the suburban areas, those experiencing faster growth, are Whitefield, Yelahanka, Kanakapura Road, Bellary Road, Sarjapur Road and Mysore Road.

Around Bellary Road, residential property now goes for around Rs. 2,700 a sq.ft. and in Marathalli for Rs. 2800. The prices quoted around Kanakapura Road and Bannerghatta Road are Rs. 2400 a sq.ft.

There have been striking variations in the types of residential properties being developed. In central areas such as Lavelle Road and Brunton Cross Road, several developers are building smaller apartment complexes of eight to sixteen units each, targeting high-end buyers. The prices here are around Rs 10,000 per sq.ft.

Suburbs such as Whitefield, Outer Ring Road, Hebbal, and approaches to Devanahalli are witnessing construction of an eclectic mix of high-end villas, row housing townships and apartment complexes.

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