The resurgence of Bengaluru real estate market
It has been a very eventful year for the realty sector in India. RERA, GST and the Union budget have all altered the playing field and raised plenty of questions in the minds of prospective homebuyers.
The Bangalore real estate market, however, seems to have experienced very little impact from the legal and financial changes announced recently. There are various reasons for the cushioning of the impact.
Stability: For starters, the Bangalore real estate market has been relatively stable compared to other cities in India because it is largely driven by end users.
IT Investments: The city attracts investments from large technology companies and this, combined with the growing number of startups, translates to a high number of white-collar workers migrating to the city in search of promising careers.
Climate: Clement weather and lower vulnerability to earthquakes are additional positives for individuals and families considering buying homes in Bangalore.
In terms of the realty spread, one can choose from, Bangalore offers the entire range, from ultra-luxurious homes for high net worth individuals (HNIs) to affordable homes with great connectivity. Affordable housing units, especially, have been seeing a rise in demand and consumption.
Office spaces vs. housing demand
In Bangalore, the absorption of office space has also been driving residential realty sales. The fact that the economy is doing well is contributing to the equilibrium between volumes of office spaces and homes supplied. As per an analysis by Track2Realty, office space absorption rate is at 50 sq ft per household, which is the healthiest in India.
Professionalism of builders
Many investors believe that the professionalism demonstrated by property developers in Bangalore is far more reliable than other cities in India. This becomes an encouraging reason for both commercial real estate seekers as well as residential homebuyers to take the plunge with minimal risk.
Metro and increase guidance value
Launching of Metro routes is almost always followed by an increase in the property value of surrounding locations. The same is expected with the Green Line in Bangalore. The line connects Peenya (industrial hub) to the Central Business District and South Bangalore.
Given traffic congestions in the city, citizens are expected to invest in homes closer to Metro stations to make commuting to work easier. Accordingly, the state government plans to increase the guidance value of property along the Metro lines in November.
Post demonetization revival
Like in all other industries, demonetization also had an impact on the real estate sector. However, the impact was very minimal. The announcement brought about a slight lull in enquiries from prospective homebuyers. Realty then bounced back in the quarter ended March 2017 with renewed interest from home seekers.
Bangalore real estate remains a safe bet from an investment perspective as demonstrated during the course of major changes in the last year.