Whitefield, Bengaluru features amongst Global Prime Property Hotspots for 2020: Knight Frank Wealth Report 2020

Bengaluru , March 5, 2020: Knight Frank India, a leading international property consultancy (IPC), today launched the 14^th Annual Flagship report: The Wealth Report 2020, and their global team of residential property experts have handpicked the most desirable areas/neighbourhoods that are likely to become prime property[1] hotspots over the next five years. These neighbourhoods would primarily benefit on account of significant improvement on social and physical infrastructure development. One neighbourhood from India has featured on this vital list and that is Whitefield in Bengaluru, one of the fastest growing metropolitan cities in the country.

Tourism plays a significant role when it comes to the luxury real estate market and it is not surprising to see that Morocco, South Africa, Malaysia, Singapore, Australia feature high on Knight Frank’s prime property list for 2020.

PRIME PROPERTY HOTSPOTS FOR 2020

Source: Knight Frank – The Wealth Report 2020

What works for Whitefield, Bengaluru

An attractive suburb on Bengaluru’s eastern periphery, Whitefield is a major IT hub within the city. The upcoming Metro rail connectivity in Whitefield has provided a fillip to this vibrant neighbourhood. Impending enhanced connectivity along with robust improvement in transport infrastructure will reduce traffic congestion woes and attract further residential demand, turning Whitefield into an appealing hotspot.

According to the Knight Frank India survey, Whitefield attracts domestic buyers living in rented accommodations in the vicinity who want to move closer to their workplaces as well as a diverse mix of buyers from other locations coupled with the expat population living or working in Bengaluru’s IT sector. The residential property range for a three-bedroom apartment in Whitefield admeasuring 1,000 sq. ft. is currently selling at Rs 4,500-7,000 per sq. ft.

Shantanu Mazumder, Senior Branch Director – Bangalore, Knight Frank India said, “Whitefield and nearby residential belts were severely affected during 2018 due to the ongoing Phase 2 Metro construction and road widening along the planned Metro line. With the advancement of Metro work, developers feel that now is the right time to cash in on the existing demand in this region due to improved physical infrastructure. Whitefield growing as a residential hub is a positive sign of the Bengaluru real estate market.”

According to Knight Frank India’sreport on real estate in H2 2019, the residential pricing in Whitefield rose by 7% in the 12 months, and 3% in the last 6 months. The price range of home prices in Whitefield stood at Rs 4,500 – Rs 7,300 sq. ft. Overall, home launches registered a healthy 23% growth YoY in Bengaluru at 33,772 units in 2019, and grew by 9% to 12,878 units in H2 2019. Meanwhile home sales in Bengaluru rose by 10% to 48,076 units in 2019, and by a similar clip to 19,851 units in H2 2019.

The PIRI 100

A part of the Wealth Report 2020, Knight Frank’s Prime International Residential Index (PIRI 100) survey, which tracks the movement of luxury residential prices in 100 cities, reveals that in 2019 Bengaluru has registered 2.1% growth in luxury residential prices.

Source: Knight Frank Research, Douglas Elliman, Ken Corporation

When it comes to luxury properties, in Bengaluru, with USD 1 million you can buy 336 square metres of area (a luxurious penthouse in the city). Notwithstanding the resilience in prices, one can still acquire 6.6% more prime residential area in Bengaluru now, compared to 2015 due to the relative strengthening of the USD during this period.

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[1]Prime property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5% of each market by value. Prime markets often have a significant international bias in terms of buyer profile.