Real estate investments are dicey things in today’s times. Realty is one sector which is witnessing a downturn currently. As a result, investors are afraid to pump up their money and most people are unable to contend with the constantly rising prices. This is a period of large scale transition as far as Indian real estate is concerned. The last year was a fluctuating market with customer demand dropping hugely and prices steadily softening in major real estate markets. However, Bangalore has always had a real estate market at the residential level as compared to other cities in India. The realty sector in Bangalore is expected to gain a bit of necessary momentum with a revival of customer demand for the same. Bangalore should always make for an even playing field when it comes to real estate investments.
Economic prosperity has been on the rise among the masses and purchasing power has increased to a great extent as well despite an economy that has struggled to barely stay afloat. Residential properties have been quite popular especially at the mid range level. The real estate market in Bangalore has been catering to a huge customer base including NRI’s, professionals, businessmen and people who have come in from other metropolitan cities in India. There is a global client base which is the backbone of the real estate market here. Modern day customers have given real estate developers plenty of scope to expand their offerings and product range. Alongside, this has given rise to loads of new projects coming up all across the city including luxury villas, condominiums, mid range residential apartments and townships as well.
The real estate sector has been hit hard by the sliding value of the rupee and the slowdown in the global market at large. Economic conditions are quite challenging as well and in spite of the same, the real estate sector has largely performed well and above expectations. The superior value of the dollar has worked in a positive manner at the other side of the spectrum, acting as a catalyst for greater investment by NRI’s in Indian properties. Bangalore is one of the most conducive environments for NRI’s and this has attracted greater foreign investment in real estate projects in Bangalore. This has boosted the market to some extent and has been a benefit in disguise for the real estate industry in Bangalore. Yet, home buyers will be affected, no doubt by the increase in repo rates by almost twenty five basis points as per the announcement by the Reserve Bank of India. This will serve to make home loans substantially costlier and may impact the fortunes of the real estate industry in the state.
However, Bangalore provides a great opportunity for buyers looking to snap up some exquisite properties at good prices. Bangalore possesses fabulous overall infrastructure, road developments, connectivity, facilities, rail networks and other amenities which are considerably better than other states. Alongside, realtors have expanded their overall network to areas that are on the outskirts of the city and these areas can become hot spots in the future. Socio-economic conditions have vastly improved in Bangalore as well and families from a mid-income background have been investing in this sector as well. FDI will also ensure that many more international companies invest in the real estate market in India.
There are some particular regions in Bangalore that have seen tremendous growth in recent times. Here are some of the top areas for real estate investments in Bangalore. Development has been taking place rapidly across all areas of the city. The popularity of East Bangalore is on the upswing owing to top notch road connectivity garnered as a result of IR corridor linking and other areas of special interest. This includes areas like Mahadevpura, Whitefield, Kundalahalli, ITPL, Marathahalli, K R Puram and Kasturi Nagar as well. West Bangalore is now swarmed by residential areas and localities. There are some major developments taking place at this end as well. This has been through retail complexes and residential projects of a high end or premium nature. Alongside, commercial complexes have also come up in West Bangalore.
Some of the top areas for investments in West Bangalore include Malleswaram, Vijayanagar, Yeshwantpur, Matthikere and Rajajinagar. Alongside, North Bangalore has also come up as a viable destination for real estate investments. Some of the major areas in this belt include Hormavu, Hebbal, Sahakar Nagar, Ramamurthy Nagar, Banaswadi, Yelahanka, RT Nagar and Ramamurthy Nagar. These areas are properly planned and have tremendous connectivity with regard to providing access to major city areas. This is the major factor behind the rising demand for quality real estate in these areas.
South Bangalore has also emerged as a major real estate hub and various multinational companies have come into this area, thereby boosting developmental activities. Metro connectivity is superb for this area and the NICE Road development endeavor has also been a success. The value of properties in locations like Electronic City, Uttarahalli, HSR Layout, JP Nagar, Sarjapur Road, BTM Layout and Bannerghatta Road has increased manifold as a result. There is also multiple road blocks that need to be overcome properly if the real estate industry in Bangalore has to thrive.
In spite of a promising future ahead, there are major challenges lying in wait for real estate in Bangalore. Some of these can be tackled with ease while intervention from higher bodies and seats of power is necessary to take care of the others. The Reserve Bank of India strategy, mentioned earlier, with regard to hiking repo rates by a whopping twenty five basis points will definitely hit real estate companies hard all across India and also Bangalore. Loan rates will be increased by all financial institutions and public demand for residential properties will come down all of a sudden. Alongside, regulatory approvals take loads of time which is another huge problem while launching big projects. Political will and mechanisms play a huge role in determining approvals and regulatory bills.
The Land Acquisition Act, which is slated to be a reality soon, will be a point of concern for most real estate developers. This may also influence prices of real estate in Bangalore and project development costs. All in all, Bangalore still offers a level playing field for real estate investments.
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