End User Driven Bangalore Real Estate Market Slated To Grow

Road-Blocks for Bangalore Deal Estate :

Raising funds is the most difficult challenge for real estate projects. Financing cost is on the rise for developers as commercial banks have become more restrictive in lending money to the developers. Hence, developers have to rely on lending from alternate sources at high rate of interests which pushes up property prices. As a result, prices go above the buyer’s range, making it difficult for the units to sell. Real estate is a capital and labour intensive industry and rise in cost of construction materials as well as in labour makes it harder for realty developers to reduce prices. Lack of transparency can also hamper the real estate market. Overdependence on the IT/ITeS industry can make a huge impact on absorption of real estate property spaces when any upset in that sector happens.

As it is identified, one of the drivers of growth for the economy is the real estate sector. However, a falling rupee and policy hurdles can derail it. Real estate prices can be expected to skyrocket since real estate developers import a lot of material from China, including furnishings, wooden materials and others. Therefore, the input prices for construction of properties are bound to increase with rupee being dipped.

The factors such as land encroachment, lack of regulation etc act as a deterrent to foreign investors who are looking for investing in Indian realty. The sliding of rupee against a dollar can be a reason of concern in some ways but at the
same time it leads NRIs to consider investing in real estate back home. Bangalore being the most preferred location among all; this drives more prospects for Bangalore real estate
development.

Future Growth Prospects :

Bangalore North is gaining momentum on the residential market front. This can be attributed to the near immediacy to Kempegowda International Airport and industrial development in the belt. The development of a technology park with major IT companies and the proposed SEZ in this region is also fuelling the demand further. So, North and North East regions which encompass major locations such as Hebbal, Yelahanka, Devanahalli and Hennur Road are the regions which are gaining foothold. Other upcoming residential micro-markets in East and South East regions which have major locations such
as Marathahalli, Whitefield, ORR (Outer Ring Road) and Sarjapur Road filled with numerous IT parks and are witnessing major real estate developments. Further in the South region Bannergattha, Hosur, Kanakapura and Haralur regions have seen development.

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