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In Bangalore, there is booming demand for high-end living spaces. And developers are only too happy building up a clientele for whom `money is no constraint'.

A European-style villa in the heart of a booming city, a high-rise apartment complex with one apartment on each floor, a residential complex with a helipad of its own... These are not props for an under-production movie, but promises that realty developers have made to prospective buyers in Bangalore.

A slice of Venice on the outskirts of Bangalore and typical Spanish villas on Chennai's suburbs are indeed possible, thanks to a booming economy and thriving businesses that have helped create a super-rich segment among the country's population, the westernised tastes of a far more educated and well-travelled audience demanding larger and better-quality accommodation and non-resident Indians showing greater interest in owning a home in the homeland.

Mumbai and New Delhi were the first to witness this trend, which now seems to have percolated beyond the Vindhyas to the country's IT hub, Bangalore.

According to a report from real estate services firm Cushman & Wakefield, even a couple of years ago these cities did not have adequate supply of high-end developments even in prime residential localities. Developers have capitalised on the growth of a discerning audience willing to pay a premium for a superior product that almost guarantees an exclusive neighbourhood.

Demand for premium apartments

In Bangalore, the trend took off when the city-based Mantri Developers launched its Rs 40-crore, 17-floor super premium residential project `Mantri Altius' on an 85,000-sq-ft built-up area in a prime locality in 2006. What was unique, perhaps unheard of even in Mumbai and New Delhi, was that the developers selected the occupants of the apartments themselves, making the neighbourhood exclusive. Each floor has a single 5,500-odd sq-ft apartment. The first apartment was sold for Rs 3 crore, and the last, Rs 9 crore.

And Altius is definitely not a one-off instance in Bangalore! "Altius is a big success, and there is demand for such exclusive apartments," says Sushil Mantri, Chairman and Managing Director, Mantri Developers. High-end apartments are those priced Rs 1-3 crore.

The Cushman & Wakefield report adds that over the coming months there could be greater interest in addressing the demand for high-end luxury developments in locations around Bangalore's Central Business District (CBD). A view that Mantri corroborates by saying that there will be takers for about 1,000 high-end apartments in Bangalore in a year. "There are many people who can afford such apartments."

The buyer profile would ideally be individuals viewing it from an investment angle rather than as a necessity, says Sanjay Raj, Executive Director, Golden Gate Properties. Those on the radar include people "who don't care for budgets and for whom money is not a constraint".

And just who are these people? R. Balaji, CEO, Propmart Technologies, a real estate services portal, describes them as those earning between Rs 60 lakh and Rs 1 crore per annum; industrialists and businessmen are prospective buyers for such apartments. "Add to this list NRIs from the US and the UK. However, NRIs are not on top of the priority list now as much as the high-salaried IT professionals; even among NRIs, the Gulf NRIs are losing their charm," he adds. According to him, there are over 10,000 professionals in the city who fall under the high-salaried category.

Says Anurag Mathur, Deputy Managing Director - India, Cushman & Wakefield, "Senior executives employed with Indian and multinational corporations as well as established business families from the city still consider locations around the CBD as `home' and prefer exclusive low-rise buildings rather than suburban mass housing complexes."

New Projects

The positive outlook has encouraged Mantri Developers to plan two super high-end projects in the city soon. "There would be 500 apartments (combined); one would come up in South Bangalore, while the other will be in North Bangalore," Mantri says.

Each project would be worth Rs 500-600 crore, says Snehal Mantri, Director, Mantri Developers. With 2,500 sq ft to 8,000 sq ft built-up area, the apartments would be priced between Rs 1.5 crore and Rs 4 crore.

"These projects would have more facilities than what is available in Altius — such as home theatre, food court, covered swimming pool, badminton court, a large clubhouse, a mini golf course, etc," adds Mantri.

And there are developers such as Purvankara who promise to bring Europe to Bangalore's outskirts. One such project, Purva Venezia, would have everything from the sparkling waterways with gently rocking gondolas to the arching bridges, the vast piazza and the manicured gardens inspired by the magical landscape of Venice. The project would also include a supermarket, gym, swimming pool, health spa, jacuzzi, and tennis court.

If innovations and amenities are anything to go by, then developers in Bangalore are leaving no stone unturned.

As in the case of Total Environment, which has launched `Windmills Of Your Mind' at suburban Whitefield with the promise of individually customised duplex homes with a private pool and garden. Amenities here include sauna and steam facilities, and a library. Each duplex home comes with a price tag of Rs 1-5 crore.

February saw the city launch more luxury residential projects — Golden Grand from Golden Gate Properties and Brigade PalmSprings from Brigade Group, both city-based developers.

Promising to be "the new icon for ultra luxurious living" and with an "I Love Bangalore" advertisement campaignto boot, the Golden Grand project was launched by actor Ajay Devgan last month. The company has roped in Devgan and Kajol as its brand ambassadors.

The American-styled luxurious residential enclave, set in a 13-acre expanse, would have 22 floors with 850 residential units, says Raj of Golden Gate Properties. Each two-bedroom apartment (over 1,400 sq ft) and three-bedroom apartment (over 1,800 sq ft) would cost about Rs 50 lakh and Rs 75 lakh respectively.

The project would also house a five-star hotel, shopping mall, amphitheatre and a helipad among other features, according to its promoters. Designed by international architects HOK-USA, these standalone apartments would do away with common walls. Other facilities on offer include a clubhouse, temple, meditation and yoga centres, and outdoor options such as tennis and basketball courts, says Raj.

Though this project does not belong to the super high-end category, the company plans to have "the asset class in the company's portfolio, where we will have one apartment on each floor. The apartments would be spread over a 8,000-10,000 sq ft area," says Raj, indicating that the project may be launched in six months.

Brigade PalmSprings, a 172-apartment complex, will be set on a four-acre campus. Besides luxury three-bedroom apartments, amenities include a clubhouse, full-fledged gym, indoor games, party area and swimming pool, and cost Rs 60-plus lakh.

Commenting on the skyrocketing prices, Raj says the extra costs would ensure factors such as high security and a good neighbourhood.

Demand-supply conundrum

Mathur of Cushman & Wakefield says numerous small projects are under development over the next 18-24 months.

"However, we expect the demand to sustain subject to pricing.

The shortage of land in these localities and the size of plots available are further limiting factors that control supply and prevent excessive development."

The demand will continue so far as the projects are launched at realistic prices, he adds.

How the cities compare

Bangalore: Rs 11,000-15, 000 per sq ft off the CBD; Palace Orchards Rs 8,000-12, 000 per sq ft; Richmond Road and Indiranagar (Defence Colony) Rs 7,000-10, 000 per sq ft.

South Mumbai: Rs 25,000-40,000 per sq ft plus floor rise on the saleable/super built-up area; Central Mumbai Rs 15,000-35,000 per sq ft; Bandra (West) Rs 20,000-30,000 per sq ft.

New Delhi: Rs 25,000-35,000 per sq ft depending on location and size.

Premium outlook

* Although mid-range mass housing projects continue on the peripheral locations in Bangalore, demand for prime apartments in the heart of the city has increased and led to considerable development activity in this region.

* In Mumbai, 2007 is expected to witness a fair amount of premium residential projects with extensive construction under way. Most of these are being developed in condominium style and would be ready over the next 12-18 months. Developers have been offering large 4-5 bedroom apartments ranging between 4,000 and 8,000 sq ft (super area), quoted at Rs 30,000-40,000 per sq ft (on super area). There is eventually a limited audience that can afford accommodation between Rs 10 crore and Rs 30 crore.

* New Delhi still has a high un-met demand, which may sustain as certain localities continue to attract interest from buyers and tenants. Backed by factors such as improved income levels, strong economic growth, increased retail lending and a large demand for housing, 2007 is likely to maintain the same positive sentiments as the past year. South Delhi, with its limited supply of land, will continue to witness a flurry of activity from end-users and high-networth investors. The majority of new supply would come up on the Noida expressway. Unitech and Omaxe are expected to launch their new high and mid-range apartment projects soon.

Source: Cushman & Wakefield

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