Interview with Mayank Ruia, CEO, MAIA Estates LLP
Bengaluru Realty Check
With the Young, Urban and Professional cosmopolitan population of Bengaluru, the real estate sector of this IT city is growing at a fast pace. Founded in 2016, MAIA Estates is steered by young and passionate CEO Mr. Mayank Ruia who has lived within the city to understand the needs of the market. Mr. Ruia talks to Realty Plus about his new company and various aspects of Bengaluru real estate sector.
Sharing his views on Bengaluru real estate market, Mr. Mayank Ruia said, “I personally don’t look the entire city as one market because it is a large city that grows in rings. There is ring road, peripheral ring road and the city also grow in the outer parts. I like to identify certain micro markets within Bengaluru and then evaluate that in details. The market as a whole is crowded with a lot of stock that may be not attractive for customers from design and quality standpoint. It creates stock overheads and nearly 150,000 units in Bengaluru are unsold which are pulling the prices of other units down and creates glut in the market.
There are certainly many challenges in the market because of recent happening like GST and RERA. But, there are certain micro markets like the north, west and some parts of the south east including central Bengaluru where good products with good price and location will get eyeballs and attract the customers.
Bengaluru is absorbing close to 11 to 12 million sq ft of office space every year. Further it is expected to absorb similar amount of office and commercial spaces for the next two three years. The north Bengaluru has the most amount of government spending in roads infrastructure. Therefore, a lot of new commercial complexes and beautiful Grade AA+ buildings are coming in that region. The rent there ranges around Rs. 55 per sq feet to Rs. 85 per sq feet. As you move closer to the city the rent is around Rs. 150 per sq feet. The companies are putting their front offices in northern Bengaluru and back offices in southern part of the city. This is because of the easy access to airport and other parts of the city with good basic and social infrastructure.
The other part is who is leasing. Largely it used to 70+ per cent IT and ITeS. The leasing activity is growing 12-13 million sq ft every year and now the share of IT and ITeS services in this is reducing. The banking and financial services, manufacturing and many multi-national business are finding Bengaluru very attractive due to prices of real estate, weather and socio-economic friendliness it has created being a diverse and cosmopolitan city.”
Read full Interview here: