JOIN USIf you look at the real estate scenario across the country, things seem to have picked up quite steadily. With the stable government in place and a slight easing on the financial front for both builders and investors, the demand for realty is in a good place right now. Let’s explore the real estate scene in Bengaluru right now and why it may be a good time in invest in some property.
Bengaluru real estate is said to be the second largest, close on the heels of
Mumbai, when it comes to the luxury sector. The City, in fact, is gradually taking over Mumbai as the hub for realty development. The reason for this is rather simple – with the growth of IT companies in Bengaluru, the number of High Networth Individuals (HNIs) is on the increase. The natural result is a higher demand for luxury properties. Some of the main areas for luxury properties in the City are Whitefield, JP Nagar, Kanakapura Road, Hosur Road and Sarjapur Road.
While on the subject of IT growth, it would be right to mention that Bengaluru is current ranked 12th among the top 20 tech-rich cities in the world. This fact is based on a survey conducted by international property consultants Jones Lang LaSalle (JLL). Top on this list are London, San Jose and Beijing.
Real estate in Bengaluru continues to look up, thanks to the steady economic growth of the City, regular infusions of investment in infrastructure as well as the presence of a multitude of startups. There is an increasing demand for office space in the City and that is a good sign.
Win-win situation
While real estate has been looking up in the City, a long-standing issue of land
acquisition and red tape in the moving forward of infrastructural projects has persisted.
One move that has served as a breather for the industry is the ordinance to bring in changes in the Land Acquisition Bill. In what is considered a win-win situation, the draft ordinance proposes that all projects in the fields of defence, rural electrification and housing as well as industrial corridors are exempt from seeking 80 per cent approval from affected persons.
Moreover, farmers will be compensated at four times the market rate for their land in rural areas and twice the rate in urban areas. Now the definition of “for public purpose” includes private hospitals, educational institutions and hotels, making them exempt from social impact studies. These are just some of the nine changes brought about by the ordinance.
Chronic delays that characterised the industry will now be a thing of the past. With infrastructural projects being given a fillip, the impact on real estate development is immense. It is also considered a move towards positive sentiment in the
industry and many believe it will have a beneficial impact as well. It has done away with the several hurdles impeding large scale projects.
Property hunting
The uptick in the real estate scenario in the south is quite evident, with Bengaluru featuring quite high on the list of hot destinations. Devanahalli and Hoskote are among the hotspots for development right now. The demand for mid-range to luxury apartments is on the rise as is the demand for land parcels on the outskirts of the City.
The Confederation of Real Estate Developers Association of India (CREDAI) – Bengaluru Chapter will be hosting its annual real estate expo in August. As with several years in the past, this expo is an attempt to bring numerous ready-to-move projects to the
consumer. The CREDAI Expo will be held across three consecutive weekends at three locations across the City. The first is at Kalyani Kala Mandira on August 1 and 2. Over 30 stalls have been taken up by developers and four banking organisations .The second expo is at Hotel Lalit Ashok on August 8 and 9 and will have 44 property stalls and eight banking institutions. The last exhibition is on August 22 and 23 at the Park Plaza. This will have 48 stalls and six banking institutions participating.
Each of these expos have been strategically timed as well as located. They take place on a weekend when the highest participation from the public is possible. Each venue for these expos is placed in North, South or Central Bengaluru and will showcase properties in these areas specifically. A potential buyer will remain within his comfort zone, yet explore multiple properties. A huge benefit to the buyer is the fact that each of the participants is a CREDAI member. This means that one can expect a high standard of quality in every project showcased. Each brand will additionally showcase projects that may be located in other cities as well.
These exhibitions will open to the public from 10 am to 8 pm. Ready to move in, upcoming as well newly launched projects will be on display. There will also be substantial discounts on offer. Every year, the expo has brought in thousands of footfalls. The
expectation is the same for this year.