Bangalore, which is now Bengaluru is the capital city of the state of Karanataka and is the 3^rd largest city in India. Situated to the south east of the state, the city covers an estimated area of 2190 km, and enjoys a balanced climate through out the year. The maximum temperature is about 39°C and the minimum is about 11°C, which makes it one of the most adored destinations in South India. Bengaluru was founded by the captain of the Vijayanagar empire, Kempe Gowda, in 1537. 

The city offers supreme growth opportunities that draw migrants from all over the country and the world. The industrial, corporate and institutional set up is finest in the country and is home to over 700 companies that comprise the IT industry of Bangalore, which includes the headquarters of Wipro and Infosys. The city being the nations leading IT employer and exporter is also a major hub to aerospace, telecom, biotechnology and heavy industries in South India. The workforce comprises professionals from all over the country that makes it demographically diverse. Bengaluru is also home to several heavy industries and  headquarters of several public sector undertakings (PSU’s) like Hindustan Aeronautics Limited (HAL), Bharat Heavy Electricals Limited (BHEL), Hindustan Machine Tools (HMT), Indian Space Research Organization (ISRO) etc. 

The city is renowned as the “ Silicon Valley of India” due to the presence of large number of IT companies. The city’s IT industry is separated into two main parts: Software Technology Parks of India, Bangalore (STPI) in Electronics City and International Technology Park Ltd. (ITPL) in Whitefield. 

Bengaluru climate is pleasant and stable throughout the year. The monsoon season extends from September to February and the climate can be compared with many European cities which makes it an ideal choice for NRI's (Non Resident Indians) to resettle in India. The city has witnessed drastic development in the real estate sector with self-contained gated housing communities and integrated townships on a rise in the city premises. 

Bengaluru Property Market 

According to analysts and trade pundits, the 2005 liberalization of India’s FDI policy led to a sharp increase in the FDI levels reaching new heights in the real estate sector in India. The demand for retail, commercial, office and real estate values has seen phenomenal growth in the city. Ernst and Young have predicted that Bengaluru will be the destination to look for, in terms of huge investment opportunities in the growing economy of India.  

Residential Property Market 

Many consider real estate as an investment option and also due to the demand for residential property in the city. This is also due to the large inflow of cash and revenues by the NRI community, looking for investment opportunities in the country and hence, the ideal option would be the real estate sector as the traditional stocks and shares based investments at times, have failed to live up to their potential. 

Bengaluru enjoyed a 35% capital appreciation and the price of the real estate market in Bengaluru has seen a growth since 2006. There has been a rise in the property value of apartments in the most desirable neighbourhoods in south eastern, eastern and northern Bangalore by more than 25% in the recent times. The demand for quality accomodation continues to rise as there is rise in the employment opportunities in the city. These factors also contribute to the rise in rental and sale values for many properties in the city throughout 2007. 

Commercial Property Market 

There remains a strong need for retail space in the city and also the construction of  more than 200 shopping malls has begun across the country since 2005, with a number of them allocated for the city. The demand from the IT sector is due to reach upto 70 million square feet in the city by 2008 and this does not include other businesses which have demand for commercial property space. There has been a sharp and constant rise in the property value in the Central Business District in Bangalore as there is great demand for well located commercial space. The city is the most preferred destination for IT companies as demand is increasing everyday due to the rise in the number of businesses being established in India which has seen an all time high in the recent times. 

Growth Drivers 

The real growth drivers of Bengaluru real estate market are IT, ITES, SEZ’s and manufacturing industries. The last decade has seen Bengaluru become the IT hub of India. The IT and manufacturing sector has seen Bengaluru as a thriving destination for real estate business. 

Many Indian and  international companies are setting up their centres in Bengaluru thus providing employment opportunities to people across the country. Bengaluru’s real estate sector has seen a sparkling growth due to rise in migrants from other cities for employment that has increased the demand for residential properties in the city. The tremendous growth is not only restricted to residential properties but also to commercial space in the city. 

The rise in double income families, multi cultural population and global lifestyle trends make the city an ideal destination for real estate markets in the city. The trend setters in the recent times are the ultra –luxury modern apartments and houses which embrace facilities like boom gate, billiards court, badminton, fitness clubs, children’s park, swimming pool, table tennis court, modular kitchen, modular bathrooms, earthquake resistant systems etc, enabled with Wi-fi systems and intelligent housing that have been designed with state of the art interiors matching the international standards. 

The recent trend is to construct affordable accommodations that cater to different sections of the society, that also are being promoted by various government’s initiatives during the recent budget session. Some of the big players like TATA Housing, Purvankara confident Housing, CMC etc are trying to capture bulk of the share in the ever-growing market segments in the city.

 There has also been a significant rise in the mall culture and ultra modern lifestyle that led to the growth of structured retail in the city commercial property bazaar. Many international retail players are swarming the city to harvest profits. Also there is an ever growing demand for commercial properties in the city due to the rise in the construction of multiplexes, hotels, theme parks, pubs, offices, pubs and many more landmarks. The real estate demand is growing at an incredible pace and it has become retail. 

Also there is an increase of awareness among the corporate society regarding the environment creating a huge demand for greener premises. Most of the IT companies and corporate giants are following the trend and setting up eco-friendly workplaces with the available technology and space.  

Bengaluru Property Market 

According to market analysts and trade pundits, some changes made to the FDI policy in the year 2005 led to a sharp rise in the real estate values in the country. The demand for retail, commercial, office and residential space is ever growing. Recent analysis by Ernst and Yount predict that the market will reach about $1.5 billion with a major chuk of the investment heading to Bengaluru. 

Residential Property Market 

Today, the real estate is considered as an ideal investment option. As the demand for residential and commercial properties is increasing everyday, many Indians and NRIs prefer to invest in the real estate sector due to the traditional stocks and shares based investments not fetching profits upto their potential. 

The city has seen upto 35% capital appreciation, due to which the price of residential estate shot up since the year 2006. This led to the increase in prive value by over 25% in the most desirable districts in south eastern, eastern and northern Bangalore. The demand for quality accomodation is ever growing as the city offers more employment opportunities and the supply of valuable accomodation and land to develop infrastructure is diminishing. This led to drastic rise in the rental and sale value for well located properties in the city in the recent times.

 Commercial Property Market 

There is still major requirement for retail space in the city as there are a number of landmarks  and malls that has been sanctioned are still at the verge of completion, though the end-user demand for quality products is intesifying with the ever increasing population of the city. 

Recent studies and analysis reveal that the demand for commercial space from the IT sector alone is expected to reach about 70 million sq ft in the city by 2008 and the numbers do not include other business sectors have likewise, strong requirement for commercial property space. Due to the demand for convenient commercial space, the Business District in Bengaluru has seen a spike in the property value. With more numbr of IT companies swarming the city to set up their offices, the demand for space is rising at an unimaginable pace.