1.4 lakh apartments in Bangalore within 2yrs

The real estate sector in Bangalore, which has been growing around 30% for the last two years, is expected to grow at the same pace this year as well.

Addressing a press conference to announce 'Realty 2006' organised by Karnataka Ownership Apartments Promoters Assocation (KOAPA), Balakrishna Hegde, president of KOAPA, said the city is experiencing fast growth due to expansion of the IT sector in the south and east of the city. The upcoming international airport in the north, too, is fuelling the realty boom.

As the city is expanding, nearly 1.4 lakh apartment units are in the various stages of construction and are expected to be ready in two years. Presently 30-32 million sq ft (30,000 apartment units) of residential space is being absorbed annually in Bangalore, which is second only to Mumbai, he added.

Of the 1.4 lakh apartment units under construction, the budget segment and mid-segments comprise 30% each, and the balance makes up the luxury or high-end segment.

With the growing economy, job opportunities and salaries in the city, the affordablity of different income groups has changed, which has, in turn, impacted prices. "Four years ago, Rs 15 lakh was the affordable bracket for a majority of the population buying an apartment. This has now increased to Rs 25 lakh today. The mid-segment has also reached the bracket of Rs 35-60 lakh," Hegde said.