Friday 15 April 2016

Real estate sector of Bangalore is more optimistic in 2016

Posted by Property Scam at 22:33 | 1 comments

Are you aware about the Bangalore market? Do you know about the pros and cons of Bangalore market? Do you know that Bangalore is one of the most prosperous markets of India? Bangalore is a city with at least 20 percent minimum returns on realty investment. The office space and commercial realty investment in Bangalore has been the highest in the last year in this city. The city also tops in the list of the NRI preferences too. The city also has the least amount of unsold stock now which means that business in the last few lean years were fairly well compared to other cities. There are large developments going on in Bangalore in places like Devenahalli, Doddabellapur and the like. This is again garnering demand in turn in the city.

In the last year the real estate prices of Bangalore has seen a bit of correction says the experts due to the stability of the rupee value, more investment and a strong growth oriented government. This was coupled with more NRI investment as the value of Rupee started falling.

The realtors remark that the potential and the prospective clients are looking at quality products and timely delivery. This is what the expectation of the market is. They opine that if this is delivered and the expectation of the markets attained there is a good possibility of the market sentiments to improve considerably. They feel that this is obvious as the new real estate bill is in the offing to be implemented with the new infrastructure in place. The expert realtors remark that along with all these good indicators of the market what’s needed is the speedy work of the infrastructure developments like the Metro railway work. They remark that these are the demand drivers and hence the government has to see the speedy completion of such works.

The other factor that the realtors and the trend watchers point out is there are two types of customers in a city like Bangalore. One is the outsiders or the NRIs who invests more due to the weakening of the rupee which makes the goods cheaper. This entails bigger foreign investments. The other factors are the customers who take huge loans in purchasing their houses, flats and apartments from banks and financial institutions. Now with the falling interest rates of the loans and home loans from 11 percent to 10 percent there is renewed interest of the customers. Bangalore is specifically end user driven market and purchase driven market and not a speculative one. This is the reason stability of the prices and even a price correction is noted.

The trend watchers also opine that there is no longer a great boom in the IT sector experiencing a high hike in the salaries. The situation virtually is that there are no jobs and money in the market and hence there isn’t any money to pay for new houses. They opine that all the factors seem to be good except the job generation factor which is in a bit of lull. It is not that the jobs are not created but the affordability is not there of those whose jobs are created as real estate products are high priced. In such a situation what the realtors are looking at is the real estate regulatory bill which is already being passed. Furthermore they are also awaiting the passing of the Land Acquisition, Rehabilitation and Resettlement Bill which is supposed to bring transparency in the sector.