The year of 2017 promises several opportunities for the Indian real estate sector as the industry is on the cusp of a massive transformation in the current financial year on the back of RERA, GST and Union budget 2017. The constant rise in the demand for quality homes along with the interventions by the government and the housing finance sector are bound to benefit the home-buyers, especially the ‘first-time home-buyers’ in the metros and growing urban areas.
Even though the real estate market in other metros and regions of the country has not been very upbeat this year, the Bengaluru market has been relatively stable. Bengaluru market is essentially end-user driven, with a steady economic activity powered by a high percentage of the white collar migratory population. The real estate pricing in Bengaluru market has been realistic.
The advent of demonetisation may have impacted the Bengaluru market sentiment, especially regarding new launches, sales, and enquiries, which appears to have dipped a little during the initial phase (of demonetisation). However, post the initial lull, the market has witnessed renewed consumer confidence in the last quarter (January –March 2017).
Bengaluru always has been considered as one of the best places to live in terms of employment prospects and quality of life. With regards to options for homes, it offers a plethora of choices, ranging from affordable homes to ultra-luxury residences. Over the last 15 years, the city has shed its image of being a pensioner paradise to being known as the silicon and start-up capital of India. Post the rise of blue chip companies and the advent of start-up culture has contributed to the growing stature of Bengaluru as one of the leading real estate hubs across the globe. If you are still thinking of investing in a home, you know which city to choose.
This may be the best time for home buyers to invest in real estate assets, especially in affordable housing segment in Bengaluru. Keeping in mind the slashed interest rate along with Union Budget sops to support the affordable housing sector, it has emerged as a much-needed boost for the real estate industry.
Bengaluru has several key real estate areas; we find the following to be the most promising:
Kanakapura Road corridor: This area offers great value for money to customers. The prices are still very competitive, owning to the significant infrastructure developments that are expected to change the landscape of this micro market. Hence, the prices will definitely rise once all the ongoing infrastructure development is in place
Thanisandra – Hennur Road belt: This location has excellent connectivity to the airport and central business district (CBD) areas through the Outer Ring Road. This locality has the lowest levels of unsold inventory within the City.
Bengaluru city centre — CBD: Exclusive high-end developments among other things in these areas have led to soaring prices, which are expected to remain stable with a strong upward bias in price appreciation.
Mysore Road: The Metro Rail is likely to kick off in the next three to six months which will facilitate better connectivity and thereby see an increase in demand
(The author is managing director at Puravankara Limited. The views expressed here are personal and are not recommendations from Financial Express)