Property market saw a boom
all over the country during the last few years, and the prices of properties
made it impossible for a common man to think of buying any property in Bangalore during this period. Seeing this sudden boom in the real estate
market, many developers entered into the real estate market in Bangalore, since
Bangalore was considered to be the fastest growing city in the country.
No doubt, Bangalore is one of the fastest growing cities
of the country as could be seen from the launch of major infrastructure
projects,like construction of flyovers, widening of major and primary roads,
construction of grade separators, under passes, Metro rail, Mono rail etc.The
city has grown not only in area but also in population. Bruhat Bangalore
Municipal Corporation now has within its jurisdiction 110 villages, seven city
municipalities and one town municipality surrounding Bangalore and thereby the
area which was just 250sqkms is now almost 900sqkms.
The population which was about 40lakhs is now about 80lakhs.
The entry of a number of multinational and IT, BT companies has also
contributed to the growth of the city in the past two decades. The growth has
not only attracted the young job seekers, but many educational institutions
have been established in and around the city of Bangalore wherein students
hailing from various parts of the country and abroad seek admission in various
technical and managerial academic courses..
As the Bangalore city is now considered to be the
destination for investment in trade and industry and the increase in population
has automatically created a greater demand for accommodation both in commercial
and residential sectors. Most of the owners of residential/commercial properties in Bangalore are expanding their built up area by constructing many
upper floors to meet this greater demand. To some extent this step may meet the
demand for accommodation in the city.
When this upward trend in the real estate sector was in
full swing, then the came the global recession and the recession has greatly
affected the real estate industry, particularly the construction sector. Buyers
were forced to defer their investments strategies for various reasons. As a
consequence thereof, there remained a large number of flats vacant awaiting the
prospective purchasers. This trend continued till recently and the property
developers were under great strain. However, the situation is now slowly
improving. The demand for accommodation, both for commercial and residential,
is now much improved. Developers, who have developed the properties and were
not able to sell their end products, will now be able to dispose them off.
To off load their finished products, the developers who
are ready with their completed projects are offering various incentives like
concessions in prices, provision of
swimming pools,clubs, gyms, small markets, gardens, playgrounds, easy
payment schedules, etc within their project area. With these incentives and
facilities it is expected that the buyers will now get motivated to invest their money in real estate market.The
present situation seems to be quite favorable for middle and higher middle
class people for investment. The demand for residential accommodation being
very high the developers hope to sell their properties. In addition to this,
the authorities, though late, have realized that the needs for basic
infrastructure in all the localities have to be met expeditiously and are now
responding favorably to such demands of the people.
Now that the infrastructure development activities are in
full swing and the property developers too are providing some of the basic
infrastructure needed within their project areas, banks are offering required
funds in the form of long term housing loans, it is hoped, the prospective
investor in real estate would come forward to invest their money on the immovable property to own property of his in the city of Bangalore.The real
estate pundits also feel that it is the appropriate time for investment in the
real estate since the real estate market seems to be steady and investor
friendly.
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