6 Major trends in Bangalore real estate 2017
Bangalore
real estate market, much like the current Indian scenario, is expected to see
major transformations in 2017. Already, a slow change has been witnessed post
the major announcement of demonetization and more recently, the news on job
losses in the IT sector. There are many reasons to rejoice and feel worried at
the same time. Besides, there is lot of action promised in the improvement and
development of city infrastructure and as more people search for spacious homes
in the outskirts of Bangalore, it is a sector gearing up for more action in the
next few months.
The
six trends to watch out in Bangalore real estate sector are:
1.
Affordable
Housing- The present government has laid a lot of emphasis on
affordable housing, giving it an infrastructure status in its scheme of things
and thus, it means more houses being built on the city boundaries of Bangalore
too. It also means more people will soon have permanent homes in the city and
the real estate sector will bear the fruits of growth in profits through bulk
volume sales. The project developers are clearly going to focus on this
emerging segment of housing projects.
2.
Consolidation-
Bangalore has a growing list of unsold inventory and after demonetization, the
home buyers are in a better position to negotiate. The cautious approach by
home seekers means more transparency and a detailed check on builder’s record,
reputation and also, less investment. The slowing sale means less investor
confidence and therefore, the overcrowded market reaching the conclusion
of-consolidation.
3. Rise of Small Developers- Affordable
Housing and emerging areas means rise of small developers. As the buyers
experience a trust deficit with big developers and seek new opportunities with
internet coming to their aid, small developers will get a chance to prove
themselves in a new fashion now. However, consolidation may somewhat act as a
hindrance at the same time.
4.
Metro
Connectivity- The city’s road transport has failed
to impress and with metro rail network doing rounds, it is touted as the next
big thing in Bangalore. The metro corridor is expected to create a positive
sentiment for real estate sector.
5. Better Connectivity- Aside
from metro rail, there is more on the infrastructure horizon for the city.
There are multiple connectivity projects including road widening projects and
the famous-Peripheral Ring Road (PRR). This upcoming project is expected to
change the realty landscape, creating another route connecting north to the
Electronic city, Sarjapur and KR Puram. As a result, one can expect upcoming projects in Sarjapur Road for
example, to gain traction.
6. Investor Pull- One
reason for a strong investor sentiment here is the stable rental yields. Also,
Bangalore is a less volatile market and a safer bet when it comes to making
long term horizon investments.
From
an investment point of view, experts advocate Bengaluru as a stable realty
market for serious investors. For investors looking for less volatile market
with long term horizon, Bangalore provides an attractive investment option.
There is minimal loss of rental income as duration to identify or replace
tenants is low. There has been investor interests for capital appreciation as
well, especially in certain sub markets of Bangalore. If you want to know more
