End User Driven Bangalore Real Estate Market Slated To Grow

The year 2013 was a drag for the Indian economy with poor macroeconomic conditions. Consumers were wary of spending because of slowing income growth,unrelenting weakness in the rupee, sky-rocketing inflation and high borrowing rates. This reflected visibly in the Indian consumer confidence index, which has been falling consistently over the last three quarters.

Surfacing Trends in the Indian real Estate Sector:

The Indian real estate scenario might currently be throttled by certain socio-political and economic anomalies like spiraling inflation, ambivalent fiscal policies and restrained interest from discreet investors, but the silver lining in the cloud still exists. India’s agreeable demographics and innate demand are the unceasing compensative elements. Investors and end-users extract equal investment opportunities from several micro-markets.

Bangalore being a Silicon Valley of India is a home to many IT and ITeS giants. The day by day increasing population of the city is a foremost factor that is affecting the Bangalore real estate market. As the number of migrants to the city is increasing, the population of the city is also increasing, thus creating an immense demand for residential properties in the city. It is coming up as a prime market displaying stable pricing and reasonable absorption pattern; yet its over-dependence on the slothful global IT industry has resulted in low growth potential in the medium term.

Moreover real estate market of Bangalore is largely driven by end users. With more disposable income in hands of people and property investment offering a higher rate of return compared to other assets the housing fragment has proved to be a major demand driver in Bangalore real estate. The appreciation forapartments is about 30 percent while the land appreciation is as high as 50 percent. There are many developers in Bangalore who work towards mid range apartments and flats where the quality and amenities are not compromised to the price difference.

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