The demand for one bed room, kitchen (BHK)
has been on increase; the developers over the past few months have launched or
are launching several residential projects in the south and north Bangalore
Industrial areas. With the proper and reasonable pricing to the properties with
1BHK flats, the situation in the real estate market is likely to improve in the coming months.
In view of the high costs of projects, the
affordability to buy 2 or 3 BHK flats in such projects has gone down to some
extent. This might have caused large number of already developed flats in the
past few years, lying vacant for a considerably long time. During recession
period, real estate market was badly affected and as such there was a down
trend in the sale of apartments. Added to this situation of 'No mood to buy',
inadequate infrastructure and poor connectivity also affected the real estate
market of Bangalore. However, the situation seems to have changed now in view
of many infrastructure projects taken up by the various local authorities of
Bangalore.
Bangalore is changing fast. Projects for
widening of roads all around the metro, strengthening of city transport by
adding large number of buses, construction of under/over bridges, construction
of sub-ways are all in progress. The most eagerly awaited ambitious project
'Metro Rail' is scheduled to commence its runs by 2011. The metro rail project will certainly improve the connectivity. Better connectivity will also help the
real estate market to improve. The much improved connectivity and good
infrastructure will be a boon to the real estate market.
With the reduction of the size of flats to
one BHK, the prices of flats have come down. There seems to be healthy
improvement in the number of buyers of the reduced sizes of flats. The demand
for such single BHK flats being high, the developers may even think of letting
out the unsold flats on rental basis in case sufficient buyers are not found.
This will not only help the people desirous of occupying flats on rental basis
but also developers for getting some returns on unoccupied flats. The demand for residential accommodation will, to some extent, be met.
The demand being more for smaller units with
one BHK, what will happen to the already developed properties with more than 2
BHK flats? The developers are offering various incentives for their properties
and expect that they will be able to dispose of a good number of such flats in
the coming months. However in the absence of data about the vacant units of the
developed properties, it may be difficult to know about the actual number of
unsold units. All efforts will have to be made by the developers to persuade the prospective buyers, for disposing of their developed flats, instead of
keeping them vacant by offering all possible and practical concessions like
deferred payments, affordable EMIs etc. in prices instead of offering various
luxurious benefits.
With the availability of comparatively easy
funds by way of loans at lower rates of interest, lowering the sizes of
apartments from 2 BHK 3 BHK to 1 BHK, lowering the property rates by correcting the price structure, improvements in the job market, it looks like the real
estate market may show some improvement in the coming months. However one will
have to wait and see what will happen in the coming months. We may have to look
for some concessions forthcoming for the badly hit economy of the real estate
industry in the ensuing State/Central budget.
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