North Bangalore On the Way To Become Greater Bangalore

North Bangalore On the Way To Become Greater Bangalore

By siliconindia   |   Tuesday, June 10, 2014   |    6 Comments
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Bangalore : India's real estate market has been wavering for quite some time due to the sluggish growth of the economy. It has become very difficult to forecast anything as the real estate market is not subject to a fixed pattern. The housing segment has seen low demand in the past three quarters all across India. However, a great degree of political uncertainty, liquidity issues, high interest rates and cautious sentiments are expected to underpin the real estate sector in 2014. The positive energy in this sluggish sector springs from the fact that the sales, though less, are not stagnant. There are expectations of an uptrend in the 2nd quarter of this year. Bangalore Real Estate Market : Inspite of the general sluggish economy and many other regions of the country being affected by the slump in the market, Bangalore has emerged as an enviable real estate destination. The assessment of the market dynamics and the present status of construction in Bangalore has revealed interesting facts responsible for its growth in the real estate sector. The Silicon Valley of India has been striding on the path of development for the service sector with the rapidly increasing demands for residential and commercial spaces over the last decade.Compared to other metro cities, Bangalore is more of an end-user market rather than speculative market. It constitutes around 75 percent share of the market, one of the highest in developed markets of India which helps to keep prices stable. IT has been the major growth driver and is responsible for aggressive real estate development in the city. Being the IT hub of India, Bangalore has a multi-cultural population with good social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure. Prospects for Expansion : With infrastructure developmental initiatives such as Bangalore Metro Rail Project, Elevated Expressway and Bangalore-Mysore Infrastructure Corridor by the State Govt. and decline in demand in the Central Business District (CBD),the city outskirts are set to see a substantial growth. Connectivity, traffic-free commuting, opening of new shopping complexes and access to quality education and health are playing major factors that have contributed to this expansion. East Bangalore has seen a steady growth in the past couple of years. Bannerghatta Road, Kengeri, Whitefield, Marathahalli which were once not the preferred locations for any property buyers have now become saturated zones. Currently, the most promising residential micro-markets are Outer Ring Road (ORR), Sarjapur Road and Whitefield region. However, this market is also seen to be fast saturating. Further, North Bangalore is gaining momentum on the residential market front. This can be ascribed to the near proximity to Kempegowda International Airport and the proposed Social Economic Zone (SEZ) in this belt that is fuelling the demand further. North Bangalore is expected to see the next real estate boom and can become "The Greater Bangalore" in the next few years. Repercussions of Sliding Rupee : The sliding value of rupee has no doubt shaken the buyers' confidence and many buyers remain very cautious ahead of investing in properties at this point of time. Job cuts across various industries have further worsened the situation. People are rather happy with the bread, instead of the dessert they had initially planned to relish! However, a silver lining amidst such dark clouds is the foreign investment. The depreciating value of rupee has attracted the interest of foreign investors in Indian property market. Challenges Ahead : Amidst all these positive projections and current upswing of real estate market, there are a few challenges. Scarcity of potable water in the dry parts of Bangalore is one of the biggest amongst them. The demand for water is fast approaching saturation levels across various zones. Rainwater harvesting could be a good approach to overcome the crisis. The construction costs are rising with every passing day. Moreover, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act can also complicate the land acquisition process and could delay projects. Word of Caution for Buyers : The decision to find the right first home is always a challenge. It is necessary to make the check-list ahead of making a choice to buy a property. It is also important to check the building credibility (affiliation with CREDAI -The Confederation of Real Estate Developers Associations of India) and necessary quality certifications. It is also vital to scrutinize local surroundings for proximity and quality of schools, employment, hospitals, shops, public transportation, freeways, airports, abundance of greenery parks, property values, traffic and ease of commuting and crime rate. It is also necessary to seek a reliable financer who is associated with a reputed builder so that sanctioning of loans can become faster. Buying a first home can be the biggest financial transaction for many people. So, doing it in the right way is very important. Sometimes,buying a home can feel like a dizzying set of rules and regulations. But when armed with the right knowledge and know-how, your dream of owning a home can become a fast and easy journey.

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