Bangalore coming up as a suitable location for Real Estate Investment
The real estate industry in India is going through the phase of transformation. During 2013, the real estate market remained constant in major Indian cities. In Bangalore, the real estate market remained stagnant as compared to its adjoining cities. It is expected that the real estate market will gain its momentum in 2014.
A Silver Lining
Despite the stagnant economy, prosperity is rising among the masses and is responsible for increasing the purchasing power. Average range property is expected to become a popular choice among the people. Bangalore real estate market deals with customers who are local buyers, working professionals who have migrated from other cities and also NRI customers. Present day customers have provided the chance to real estate developers to increase their base. As result of this, new projects are being launched consisting of mid range apartments.
Sliding Rupee
Like other sectors, the real estate sector has been also affected by the downfall in the value of Indian currency. Facing these economic challenges, the real estate sector in India is performing well. While there was a decrease in demand of property in local buyers, the strong value of Dollar motivates the NRI customers to buy property in India. Bangalore is the most prominent location to live for the people living abroad.
While the current announcement by RBI to hike repo rates by 25 bps (basis points) has been a constant topic of discussion. It is expected that this move will force the bank to increase the loan rates, which will have an impact on property buyers.
Growth of Bangalore as a real estate market
Bangalore is a suitable location for real estate investment. In last few years, the real estate industry in Bangalore has witnessed a huge growth because of these reasons improved infrastructure, better civic facilities, better road developments and better rail networks. Because of better connectivity and infrastructure real estate sector is going to increase its border to the areas out of city. Due to improving economic conditions, the populous mid-income earning families are going to invest in real estate sector. As a result of FDI many outside investor entering the real estate market of India.
Regions in Bangalore foreseeing growth
The Bangalore city is witnessing huge development activities in all four directions of city. East Bangalore is emerging as the popular among real estate developers due to better road connectivity. Whitefield, Marathahalli, Kundalahalli, K R Puram, Kasturi Nagar, ITPL and Mahadevpura are some of the favorite residential locations of city.
West Bangalore is also witnessing huge developments in form of construction of commercial and retail complexes and high-end residential projects. Some favorite locations of West Bangalore are Yeshwantpur, Malleswaram, Rajajinagar, Matthikere and Vijayanagar.
North Bangalore has been a popular residential destination both for end-users and investors. Developmental activities in North Bangalore have been phenomenal. This area provides easy connectivity to major areas in the city which is one of the main reasons of increasing the demand in areas like Hebbal, Yelahanka, Ramamurthy Nagar, RT Nagar, Banaswadi, Hormavu and Sahakar Nagar.
South Bangalore is emerging to be a popular location of real estate development. The entry of MNCs in this area has increased the development activities in this area. HSR Layout, Sarjapur Road, Electronic City, Bannerghatta Road, JP Nagar, BTM Layout, and Uttarahalli are some favourite locations of real estate development in South Bangalore.
Road blocks to overcome
The future of real estate industry in Bangalore looks good but it is also facing many challenges. Some of these problems can be controlled while the other challenges needs intervention from higher authorities. For example, the current step by RBI to hike repo rates will affect real estate developers in India. This action forces the financial institutions to raise the loan rates.
Another common problem faced by the real estate developers is delay in approval of projects. In a country moved by emotions, the political order plays a vital role in defining and governing acts and regulatory bills which needs stability. The new ‘Land Acquisition Act’ will cover real estate developers in India and it may also responsible of increasing the prices.
Source: The Silicon India
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