The most progressive city blessed with the pleasant weather is none other than “Namma Bengaluru”. When it comes to real estate, this silicon valley of India has always been a promising one for investors. Last year was indeed a very eventful year for the realty sector in India. But, is it the same after the most game-changing policies such as GST, Demonetisation, and RERA are implemented?
While the Chennai realty market being hit badly, Bangalore recorded only its lowest dip in the housing sales in 2017. Even National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) were no exception to the backlog inventory similar to Chennai, but Bangalore was able to survive this situation pretty well.
When you compare the backlog inventory of these three major cities, NCR is with 75 and MMR with 61 but only our Namma Bengaluru with just 30 months backlog.
“Do you know that Bangalore has been rated as five cheapest cities in the world?”
As per the ‘worldwide cost of living’ survey, Bangalore’s cost of living has been compared with more than 400 prices across over 150 products and services and rated it as the cheapest city not alone in Asia but in the whole world.
What are the reasons behind this little impact after these legal changes?
There are several reasons for the cushioning of the impact and they are
1) Realistic realty price: We can call Bangalore realty segment as end-user driven with stability in prices. When we compare Bangalore with other metropolitan cities, we can find out that Bangalore realty has never undergone any high price fluctuations. One such example that I would like quote here is the inception of metro rail in Gurgaon leading unrealistic price hike in some areas within a year.
2) Buyers from Service industry: With an abundance of IT companies located in Bangalore, the majority of the buyers are white-collar professionals with a steady income. In fact, they are ready to pay EMIs for their home loan than opting a full settlement. Also, the real estate industry started booming only because of IT professionals working here. This clearly shows why the cash component of property transactions are low from the beginning.
3) Commercial sector’s steady growth: Bangalore, which was once a pensioner’s paradise has now completely changed into a bustling IT hub. Being a pioneer in the rise of the start-up culture, the city is showing promising growth in the commercial sector too. That is why many multinationals are either setting up their base here or at least looking for their expansion here. In just march alone, the city has witnessed enormous investments.
“Embassy Group” has stepped in to invest Rs 1,350 Crore in four new hotels in Bangalore.
“Prestige Group” has purchased 59 acres of land at a cost of Rs 330 Crore in a plan of developing a “state-of-the-art commercial space.”
As a final note, Bangalore has also had an impact in real estate after these crucial policies are implemented but the point is “the impact was very minimal”. Bangalore has always and will continue to remain as a safe bet for investment but “will the crumbling infrastructure allow it to be a most liveable place?” is the biggest question arises here. Pretty famous for its “traffic snarls”, Bangalore is struggling to overcome many other infrastructure problems too.
Can we expect this lethargic infrastructure to be fixed soon? Only time can reveal but Bangalore still continues to be the most attractive place for investing because of its less volatile market.
Those eyeing for a property to invest on, we, Sai Kalyan Builders and Developers have some exciting properties in the perfect location. We have built many successful projects with 100% Vastu in North Bengaluru. Our recent project, Sai Kalyan Ultima Smart Homes built on latest Aluminium formwork technology have completed its 1st phase successfully with 100% occupancy in spite of high turbulence in real estate market. We have now commenced the 2nd phase and the bookings are happening pretty fast.
For Flats between 51 to 60 lakhs: http://www.saikalyanbuilders.com/flats-for-sale-in-Bangalore-within-60-Lakhs