Being one of the most cosmopolitan cities of India, Bangalore has attracted many real estate developers to come up with promising residential and
commercial property city. Bangalore has a lot to boast about like an attractive job market, vibrant youth culture and world class infrastructure. All these factors put together have stimulated the real estate demand in the city.
And if you are planning to buy a
property in Bangalore right now, it is, undoubtedly, the right time. The prices are down and promotions are up. A lot of developers in the city are offering various kinds of discounts, freebies like offering cars, plots, for either buying a flat or booking one to their buyers. All these enticements have come to stimulate the slowing demand of property. The flip side to this is that buyers who had paid for their dream homes may have to wait a bit longer as several developers have held up their projects due to lack of funds.
According to Mr. Girish Jain, Branch Manager, Jain Housing and Construction Limiter, the past six months have been quite dramatic for
Bangalore real estate sector. Considered the city’s fastest growing industry, after Bangalore’s IT revolution, the global economic slump has almost grounded the real estate sector. He also said that the effect has been so huge that many developers find themselves in a lurch and customers desperately wait for the completion of their dream homes.
Also, due to migration from across India as the city has turned into a goldmine for young job hunters, Bangalore’s IT boom and corresponding growth of the economy have seen a large-scale increase in the city’s population. As per latest official figures, Bangalore’s population has grown 35 percent in the last six years. Bangalore’s current population is 8,084,676 and the directorate of economics and statistics has estimated that it might touch 10 million by 2012.
The constant increase in population has lead to an increase in demand for housing facilities and real estate developers have seized this opportunity. In the last few years, the northeast, east and southeast parts of the city, covering areas like K.R. Puram, Marathahalli, Sarjapur, Bannerghatta Road, Kanakapura Road, J.P. Nagar and Jayanagar, have seen immense growth in real estate development. Be it residential, office and retail, the city has definitely experienced a real fast growth in its real estate scenario.
However, in the last one year all this has changed. The growth rate has reversed to some extent. “Mr. Raj Menda, president, Confederation of Real Estate Developer’s Associations of India (CREDAI), Karnataka, said that no survey has been done so far to estimate the exact number of unsold flats. But it could be in hundreds. Such is the effect of global economic recession on the city’s real estate market, he added.
A member of CREDAI commented on the situation, he said that the ripples of global economic slump have made realtors put on hold many new ambitious plans and defer those which were already under construction. Besides that, fall in demand has also severely hit the sector, he added. While the shrinking cash flow has hit the industry badly, analysts feel that the downward trend started with the Reserve Bank of India (RBI) increasing the risk weightage for the real estate sector sometime back. According to Mr. T. Venkatesh Babu, Senior Manager, Market Research, Nitesh Estates, the high risk weightage to real estate sector essentially meant a cut-down on lending to the sector – both to developers and buyers by the lending agencies. He also added that as the funds to the sector are choked, both the developer and the buyer find it difficult to secure loans. In fact, several families have also deferred purchases. This has led to reduced sales, affecting project funding, he added.
However, CREDAI members are hopeful that the slew of measures undertaken by the central government in the last three months to ease the credit flow to various sectors of the economy would bring back buyers in the market.
So, it is, undoubtedly, the best time to buy your dream home. These days one can not only see prices of various projects falling but also realtors are offering many enticements and discounts. Take advantage of this time!
Sukhpreet Kaur writes on behalf of
99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estateindustry. It is a forum where buyers, sellers and brokers can exchange information, quickly, effectively and inexpensively. At 99 acres, you can advertise a property, search for a
property in India, browse through
Bangalore Real Estate and Properties. 
