It is an
established fact that property prices around any city or town in a developing
country will always be increasing. Industrial and commercial activities attract
people to the urban areas in large numbers. The rising demand for commercial
and residential land causes the cities to swell upwards through multi-storied
buildings, and outward through the development of sub-urban areas. This
observable fact is evident in all urban areas around the globe. Property prices are bound to increase along with economic progress. But the rate of increase
can vary considerably from one place to another.
Persons who
are considering fixed, short term or long term investments in urban and
sub-urban areas should make a detailed study of the causes for existing prices
in the particular area they have in mind. Speculative investments may trigger a
sharp increase in prices though there are no specific reasons to warrant the
rate of increase.A general guideline that can be applied to assess whether a
specific rise in real estate prices at a specific place is warranted or not, is
to check the proportionate rise in demand for industrial, commercial and
residential areas around that place.
Property Development in Bangalore:
Looked among
the largest growing cities in the world, Bangalore city has seen a sharp
increase in property prices over the past couple of decades. The industrial
development of the suburbs has led to the rise of a large number of affluent
businessmen, professionals and upper middle class in the city, the majority of
them not local residents.
The rapid
development of the information technology (IT) sector is mainly credited for
the high rate of increase in property prices over the recent years, but the
real expansion started during the 1970s with the development of huge industrial
areas beyond the suburbs of the city. This gave rise to increased demand for
commercial space in the central business district of the city. The surrounding
residential areas were encroached into and this resulted in the outward
expansion of the city.
Locations
that were once considered far outside the city limits have now become
fashionable & lucrative residential areas. The success and expansion of the
IT industry increased the demand for commercial and residential space within
the old city area, and this led to the upward expansion of Bangalore through
high rise structures, and the process is still going on.
Current Trends:
To ensure
that the land is available at reasonable rates for a healthy development of the
city, the state government is taking procedures to check further congestion
within the old city limits, while at the same time providing infrastructure for
proper development in the outskirts. Zoning restrictions have been implemented
to thwart haphazard development. Strict action is being taken to curtail the
nefarious activities of unscrupulous real estate dealers, who produce forged
title deeds and other documents to fraudulently sell property that belongs to
others. Even there have been many cases cropping up wherein government lands
were illegally disposed of in this manner. While genuine property developers
are encouraged, speculators have been restrained from indiscriminately raising
property prices. The government policy is to ensure that property, whether
built up or as land, is available at reasonable rates.
Another
major development is the approval of the Central cabinet for the proposed
Bangalore Metro Rail Corporation Limited (BMRCL) which is planned to cover 33kms
in two corridors.
For more details,
No comments:
Post a Comment