Is Bangalore facing land scarcity?

Bangalore has the reputation of being the most preferred location for commercial and residential real estate activities. MNCs that look to expand their operations in India choose Bangalore as their base. Several factors have contributed to the rise of India’s Garden City into a booming industrial and commercial market. A pleasant climate combined with the most modern infrastructural facilities provides a favourable environment for operation. Residential real estate market also has been a strong sector in the city. Urban living is amply supported by excellent civic and physical infrastructure. The city has a huge inventory of housing units spread across the various zones of the city. A wide range of residential options including houses, flats, villas, and row houses provide the best living conditions in Bangalore. The city is well connected across locations through a well maintained network of buses, metro rail, and other modes of transport. Schools, colleges, universities, higher education centres, hospitals, malls, shopping streets, parks, multiplexes, and several other facilities ensure a highly sophisticated environment for living.

Increasing demand for space

The phenomenal growth of Bangalore is attributed mainly to the growth of the IT/ITeS sector that still remains the major driving force for development. As more and more companies entered the scene, the city witnessed a proportional migration of the working population from other parts of the country. The new companies and the employee population needed space to accommodate them. This led to a rise in the demand for vacant spaces to develop. Huge large parcels were needed for commercial and residential projects. With time, land in the city became a fast depleting resource. All the major real estate markets in the city became saturated with various realty projects catering to the commercial as well as residential sectors. When land turns into a precious resource, prices are bound to soar. Available land was quite expensive in Bangalore city making it inaccessible for the common man. As land prices went up, it affected the rate of residential units and office spaces. Areas that were once the most sought after destinations became largely out of reach. For example, new projects in Koramangala, a popular realty market, today cost several times more than the price of houses and flats a couple of years back.

City expands

The acute space crunch and high cost of land led investors and business houses to look for other affordable options. The result was the development of the suburban regions of Bangalore that were till now sleepy satellite cities with fewer activities. There was plenty of vacant land available for very low rates. The downside was problems of accessibility and lack of proper infrastructure that supported growth of business. However, with the backing of various government sectors, more infrastructure and facilities were added to these areas attracting builders and developers to explore the possibilities in the newly developed regions. Instead of focusing on projects in Koramangala or other such areas that cost them a fortune, they now exploited the opportunities that these border zones provided. Employees who preferred to live closer to their work places created a surging demand for properties here. Today, most of the peripheral cities of Bangalore are as developed as the core city making the borders of the city to expand beyond the urban areas.