Bangalore sees spurt in villa projects

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Unlike earlier, over 15 developers including leading players are now focusing on villa developments due to the growing demand for lifestyle villas in Bangalore. The stiff competition has put pressure on prices, thrust on amenities hitherto unheard of and focuses on neighborhood selection all of which are becoming essential ingredients while developing and marketing villa projects in the city.

The influx of developers and the level of interest evinced by others from cities like Pune, Mumbai and Hyderabad have further aggravated the competition due to shortage of land, say market sources.

Villa developments are mostly happening in suburbs like Whitefield, Yelahanka-Doddaballapur road, Devanahalli, etc. The 3, 4 and 5 BHK villas cost anywhere between Rs 2.5 crore and Rs 10 crore per unit depending on the location, developer, connectivity levels, neighborhood, specification and amenities offered in the project. Individual swimming pools and clubhouse add more value to the property.

Rentals range from Rs 1 lakh to Rs 3 lakh depending on the type of development and amenities offered in the project. The demand predominantly emerges from senior corporate executives, NRIs, HNIs and a few institutions. Leasing demand in particular, from US and European expatriates, is high depending on the location, proximity to international schools, retailing, banking etc.

Leading developers are said to sell on an average two villas every month and 100 apartments. Model villa plays a key role as it provides a replica of what is in store for the prospective buyers and the decision making is also fast, says a senior executive with a leading property developer in the city.

Among the developers focusing on villa developments, specific mention should be made about Chaithanya, Prestige, Sobha, Adarsh, Embassy, Hiranandani, Divyashree and Century Real Estate. New entrants include Nitesh Estates, Kent Properties, Anchor group and MIMS Builders and a few others. Nitesh Estates is due to launch a villa project comprising 3-5 BHK units at Rs 10,000 per sqft near the international airport by the end of this month. Brigade group has recently launched a villa project as part of an integrated township development in Devanahalli. The unit cost ranges from Rs 2.9 crore onwards. They are also due to launch two more villa projects one in Bangalore and another in Mysore.

For villa units in the price range of Rs 1.5 crore – R 3 crore, home loan demand upto 80 per cent of the unit cost continues to remain but for high end units, there is hardly any requirement. Home loans are sought after due to inherent tax advantages associated while investing in housing. The need for home loans for villas with leading HFCs clearly illustrates the consistent demand pattern for investment in villa projects. 

“Demand for villas has been consistent but here again it depends on the location. For instance, Whitefield is the preferred destination followed by Bangalore North and Hosur road”, says Irshad Ahmed, a veteran realtor.

According to Syed Ayub, Director, MIMS Builders, which focuses on boutique villa developments in Whitefield, neighborhood selection plays a key role in creating the right ambience for community development projects. The capital values have nearly doubled in a span of just two years as land area offered is more and land appreciates much faster than other assets, he adds. On the flip side, there are others who feel that marketing a villa project is slow and tough in view of the selective clientele even though model villas have speeded up the decision making process of late, according to market sources. In areas like Whitefield, NRIs are struggling to sell the villas as the secondary market transactions are going slow due to a combination of factors.

According to market sources, developers are not under pressure to market villas unless they have ventured into joint development with land owners in which case there is a time-bound plan and commitment to adhere to delivery schedule.

Source: The Economic Times, ET Realty, Bangalore

Comments

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Sat, 2014-05-24 16:51