Bengaluru, among the fastest developing property markets, has been growing vertically in the past several years.

Even as it expands geographically, Bengaluru has also seen vertical growth with a spate of high rises dotting the skylines, not only in and around the central business districts, but also in the upcoming residential areas across the city. From the city centre, the peripheral limits of Bengaluru have expanded significantly over the past few years and have spread around 30-40 kms, thereby creating vast investment opportunities, not only in developed properties, but also in residential plots, gated communities and villas among others.

The local populace, which already owns a property in the city, prefers to invest in the residential lands and plots, while newcomers prefer to go in for apartments, analysts say. The rapid appreciation in land rates over the past decade or two has made residential plots a favourite investment for the local Bangaloreans.

Favourable socio-economic conditions, cosmopolitan culture and salubrious climate are the major reasons that have helped attract home buyers. Besides the appreciable number of launches and absorption, the fact that property prices have been relatively stable in the past few years also makes it attractive to the end users and investors, observers say.

An interesting trend in Bengaluru is the spurt in the launch of premium and high-value luxury apartments, where the average prices are over ₹1 crore and above. Rising incomes coupled with growing aspirational levels have been fuelling the demand for these premium and high-value properties in the form of villas or luxury apartments with world class interiors and facilities.

Villas and row houses are most visible in the North, East and Southern parts of the city. Properties with a price tag of ₹1 crore and above are common among the city's high net-worth individuals. Bengaluru has a high net worth individual population of about 10,000, the third highest in the country after Delhi and Mumbai. According to analysts, the luxury housing in Bengaluru is one of the most vibrant and dynamic segments, where the demand is driven by rising incomes and increased exposure to global lifestyles among others.

Most of the demand for high-end properties comes from executives of multinational companies, businessmen, non-resident Indians and expatriates. According to Jones Lang LaSalle, Bengaluru city witnessed the launch of around 35 luxury residential housing projects offering around 6,000 units in 2014 as compared to 18 projects offering a total of 4,200 units in 2013. Also the city is seeing growth in gated communities, senior citizen and retirement homes, in tune with the rising demand for such properties.

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