Bangalore has witnessed a significant increase in the prices of properties in 2022 and the same trend is continuing in the first quarter of 2023.
The price of real estate in Bangalore has increased by more than 20% to 50% in the last five years. This increase in property prices is due to several factors, including the high demand for housing, a shortage of supply, and the overall economic growth of the city.
One of the primary reasons for the increase in property prices in Bangalore is the rise in demand for housing. The city has become a hub for the IT industry, attracting a large number of people from across the country who are looking for employment opportunities. Another reason for the increase in property prices is the shortage of supply.
The increase in property prices in Bangalore has both positive and negative impacts. On the one hand, it has made it challenging for the average person to purchase a home in the city. On the other hand, it has provided a boost to the economy by attracting more investments and creating job opportunities.
High-end sectors like villas and row housing have sparked significant rises in prices due to heavy demand for apartments in the range of Rs.50 Lakhs to Rs.90 Lakhs and the unsold inventory is gradually halved with the sellers/builders.
The government has also played a significant role in the increase of property prices in Bangalore. The government has been encouraging the growth of the IT industry and startups in the city by providing various incentives but as usual, the Government machinery is not properly executing it.
The government has also been investing heavily in infrastructure development, such as the construction of metro lines, which has increased the accessibility of various parts of the city, thereby making them more attractive to investors.
The increase in property prices in Bangalore has not been limited to the high-end residential segment. The demand for affordable housing has also been on the rise, and this has led to an increase in prices in the mid-segment of the market as well.