For the large influx of people coming into the city, understanding the pulse of the real estate market is important. After all, many choose to make Bangalore home.
Several questions plague the mind on prospects of Bangalore real estate, the infrastructure available today and in the future. Which are the upcoming areas for investment and what there may be to look forward to, are also questions that are ever-present.
We speak to S Suresh Hari, Secretary,Confederation of Real Estate Developers’ Association of India – Bengaluru (CREDAI) to understand where Bangalore stands on the real estate scenario and help give the prospective home buyer a bird’s eye view.
What is the current state of Bangalore realty – is it on a high, low, stagnant or stable?
The market is stable and constant for the past 6 months. With expectancy of a stable Government, the buoyancy is expected by June. The year started with a bang for Bangalore, with the city attracting private equity investments in the real estate sector.
Several deals for over Rs 60 crore have been signed or are in the final stages of closure. One of the main reasons for this is the great level of absorption of residential homes that the city is witnessing thanks to the creation of jobs at a regular pace.
Bangalore has also recently been dubbed the “#1 luxury home market” in the country. Its demographics have come down from the average of 60 years to that of 30 years.
The earning and spending capacity of the public has increased. This has had an impact on the real estate market in general as people are looking for lifestyle now and have the financial abilities to meet it.
Other sectors of real estate like retail too are seeing an uptake thanks to the ever-increasing presence of IT companies and their impact.
The impact of large infrastructure such as the opening of the Reach 3 Metro and the Hebbal Flyover to the Airport on real estate.
The Metro will definitely be a game changer for the areas that it connects. The interlinking of the purple and green lines is when the maximum benefit via infrastructure will be seen.
The real estate is seeing an upward trend in all the area surrounding the currently functional Metro points. Better connectivity ensures that rental and sale prices of both commercial and residential spaces will steadily increase.
North Bangalore is believed to be the new hub of development, yet prices are inflated in the area?
Price inflation is not a reality. With better connectivity to Airport and signal free corridor being operational from Hebbal, the demand in the area will keep increasing. Bangalore real estate market is never over-priced.
What are the possible ways in which basic needs such as water and electricity will be addressed, considering that shortage in both has not slowed down development.
This is a constant issue and builders alongside Government are working on it. The conservation of water and recycling is one such effort that is in place. With depletion of groundwater level, the residents have no choice but to depend on public distribution system.
The Government is implementing schemes to supply water to newly developed areas. Rain water harvesting, treatment plants to recycle water along with desalination and innovative technology for water generation will be the order of the day in future.
Bangalore is also plagued by flyby night operators. How can an investor protect himself?
Like any other trade, there are always elements undesirable for trade operating in this space. It is important that a prospective investor do his research on a developer or any real estate agent.
Especially for a builder, an affiliation to an organization like CREDAI provides added credibility. For real estate agents, asking for references that you may speak to for verification is a good idea.
What your advice to a first time investor?
Any investment needs caution and careful approach. Real estate in our country is mainly looked at as being very sacred and often it is a life-time investment. One should exercise utmost caution when making the final decision. Title verification, a check on the developer’s track record and references are a must for all.
Which are the best areas for investment in real estate in Bangalore right now?
Almost all areas are growing equally. Best would be to do a complete physical search of properties before deciding. Looking at the surrounding areas and the potential of growth should be a deciding factor. An investor needs to look at all the factors before committing to an investment.
A first time buyer, for personal use, has limited scope since various parameters like location, proximity to school, hospitals, work place etc., plays a an important role.
What must one look forward to in Bangalore real estate going further?
Bangalore is among the best real estate markets in the country. Any investment here has never come down in terms of value in the past. The increase in prices of property has been always been gradual.
Builders in Bangalore provide aesthetically designed dwellings/space which is the key attraction. Customers have come to the realization that the best value for money lies in Bangalore real estate market.
Bangalore will continue to be an important hub of real estate development in South India. With the right kind of focus on infrastructure development the city is poised for better things to come.
Mr Suresh Hari – Secretary, CREDAI-Bengaluru
Mr Suresh Hari has been a part of the construction industry for over two decades now. He has executed various residential projects with quality and service as the primary principles of his work.
The organisation ‘Vishal Promoters and Builders’ follows the policy of –‘Built to last’ and have thousands of satisfied customers.
Mr Suresh Hari is connected with various trade bodies and association. He is a member of Confederation of Real Estate Developers Association of India (CREDAI) and Present Secretary, CREDAI-Bengaluru. Being a constitution expert, he is a member of National Constitution Committee of CREDAI.
He is also a member of Builders Association of India and FKCCI. Currently he is on the State Taxes Committee of FKCCI and an invitee on the Governing Body of Builders Association of India – Karnataka Center.
He is also a Core Committee Member of Indian Green Building Congress (IGBC), Bangalore. Currently, he is an Executive Committee Member of Skill Development Academy under the Labour Cess Board and Rajeev Gandhi Housing Corporation where different trade-related skill upgradation training is imparted to construction workers.
Ramesh Kumar has extensive experience in real estate in a career spanning over a decade. With his critical expertise in sales and marketing, he has successfully launched and closed out projects across a complete spectrum of properties like plots, budget apartments, comfort homes as well as luxury villas.
Ramesh Kumar holds a Post Graduate Diploma in Management from Bombay University and is currently serving as the Deputy General Manager – Marketing & Sales at Vakil Housing.