The growing start-up culture in India is changing the dynamics of entrepreneurship. Many employees are leaving high packages and top-notch positions to start their own ventures. This move is also making a sginificant impact on the real estate market of the country.
If we make a quick scan across India, we can easily conclude Bengaluru – the ‘Silicon Valley’ of the country to be the preferred city of start-ups. The impact of which is reflected in the real estate sector.
As more and more companies with funding from venture capitalists, are foraying to Bengaluru, properties prices in the city are steadily increasing since the year 2012.
According to PropIndex (April-June 2015), the India Apartment Index by Magicbricks, more than 70 per cent localities in Bengaluru posted an increase in average capital values.
The supply of residential units also saw an increase. Overall, the Bengaluru City Index registered a maximum appreciation of 6 per cent. Take a look at the graph below from PropIndex.
Pramod Jain of Jain Estates states, “One of the areas which is flourishing is Koramangala due to proximity to the IT hubs. The demand for properties has shot up. We have received a lot of queries for buying as well for renting purpose.”
The PropIndex data also indicates that it is one of the preferred localites. The area as we all know offers good connectivity through roads and highways.
Apart from Bengaluru, Coimbatore is fast becoming a place for start-up hubs. The city is developing and experiencing an upswing trend.
Although Coimbatore is known for its textile industry, many young professionals are changing the face of the city by launching several start-ups and employing professionals.
The realty industry is picking up. “Areas like Gandhipuram initially had no takers but now it is luring people which has led to a price increase by 25 per cent,” says Ashish Kanth of Yogya Prop.
Therefore, if you are planning on an investment in these two cities, then you are in luck. These are favourable times to invest here. With the growth in the number of start-ups and influx of people for job opportunities, your investment will appreciate in the coming years and bring in lucrative rental returns.
Source Times of India | Neha Nagpal / Magicbricks- Content & Research team