Economic slowdown: Bangalore real estate stays immune

Economy and real estate are inter-related. With the slackening of economy, the real estate market of the city goes for a toss and vice-versa. Post economic slowdown, property consultants had speculations regarding the efficiency of the Bangalore realty market. However, property consultants clear the air confirming that despite the slowdown real estate in Bangalore maintains its terms and conditions.
The Bangalore realty sector is full of surprises. Due to a dearth of customers and financiers supply, on account of downturns for two consecutive years, the realty industry has been been left with no choice but to swim with the tide.

Property buyer’s reaction

The present downturn of the Indian economy has not affected the sales of residential units in the Garden City. However, the impact can be seen with the rise in buyer’s purchasing power, which has become extremely sensitive. With the shooting up interest rates and loan eligibility going downhill, the spotlight has been changed from per sq ft value to the aspect of affordability.

In the last three months, properties having a ticket size of Rs 50-Rs 80 lakh have been sold in large numbers. Market reports confirm that a slew of new launches are likely to occur in the ticket size Rs 50-Rs 80 lakh. However, properties valuing Rs 1 crore and above have witnessed a downward slope in the last one year. The economic slowdown has mainly held its clutch on builders who have come up with premium and luxury homes in 2012.

Right Time for investment

Being a neutral market, the prices (that are not too expensive) in Bangalore realty market have not decreased and are expected to remain stagnant in days to come. This proposes the right time to invest in the real estate properties of the city, since values are expected to only climb up, according to property consultants. In addition to it, with the sudden dipping of the interest rates of home loans, buyers will be left with more purchasing power to make beneficial investments.

The fall in rupee has impacted the economy in a number of ways, however the only good news is that the NRI investments have gone up. Downfall of the rupee has brought in a number of foreign investments in the realty sector of the city. Such NRI investments are expected to increase with time when the market becomes less volatile.

In such a case, only two corridors provide the platform for fruitful returns on investment by NRIs. The North Bangalore for increased ROI and proximity to airport, and Sarjapur Outer-ring road stretch that is adjacent to a number of IT companies and workstations.