Demand and Supply Gap in Bangalore Real Estate
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Demand and Supply Gap in Bangalore Real Estate

By siliconindia   |   Wednesday, July 2, 2014


Bangalore : Next to the Agriculture, Real estate has an enormous demand and it is considered as the second largest employer in the Indian economy. This Real estate comprises of four different sub sectors such as Housing, Retail, Commercial and Hospitality. The Housing contributes a huge percentage to the country's GDP. The present economic situation will be analyzed as a transient point for the real estate dynamics in India. Even though the market looks positive due to the demand across the sector. The real estate industry seems to be affected by the rising prices of construction units, inflation and interest levels. The report analyzed for Bangalore is, that the expected demand likely to push property prices upwards. When compared to top seven cities, Bangalore city demand supply gap will be very high. Mostly, the commercial space demand is arising from metropolitan city Bangalore. The city is expecting to witness the highest demand supply gap for both MIG (Middle income group) and HIG (Higher income group) Housing during the period 2013 - 2017. The Demand and Supply gap in Real estate Bangalore is it true ' Yes, It is true in Bangalore city. Because, the population in India is growing faster than the Residential Apartments being constructed. There is also a very large underlying demand for LIG (Lower Income Group) and EWS (Economic Weaker Sections) to bloodshed with that demand the seven top cities are planning to allocate a certain percentage of developed land for LIG and EWS so that they can meet the demand from this sector. This will also help in improving the supply in the affordable housing segment. Even though, the demand will increase the supply of Residential Apartments will still trial behind because of factors like Land acquisition bill and Real estate regulatory bill. The uncertain scenario will also affect the supply of Residential units. In India, The top 10 states give three fourth of urban housing shortage, this makes the prices to move upwards. Most developers have unsold inventory present, the over pricing is the crust. The primary and foremost factor that the developer can explore is reducing this pile-up, which is able to improve their liquidity. The limitations of the Real estate developers facing are the unavailability of land in urban areas, Rise of construction costs and labor shortage, Delay in sanctions from the authorities and financial constraints for buyers and developers. There are several measures which can help us to overcome these hurdles such as planning, capitalize construction costs, better funding for developers, make sure of availability of housing loans to weaker segments etc?. There are few measures for reducing the gap between supply and demand of Bangalore Residential unit.

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