Wednesday, 26 February 2014

RISE OF BANGALORE’S REAL ESTATE


The city of Bangalore is emerging as a global hub of technology in India. The transition had its impact on many fields and one such being the real estate, which is witnessing radical changes. With these current developments, there has been steep increase in the prices, resulting in huge fluctuation in the rates. Nevertheless, the advent of major industries in Bangalore has brought about consistency and stability over the fluctuating prices real estate scenario.

There has been exceptional growth in the population due to increasing numbers of migrants from different states to Bangalore city. As a result, there is a huge demand for housing solutions. In order to cope up with the increasing demand for housing, new layouts, both private and BDA are coming up, which, in turn, has brought about the balance between the increasing demand for houses on one hand and stability in house prices.

Factors for demand
The rapid increase in the demand for the quality residential space is due to the following reasons:
Ø  Rise in the income of the middle class, thereby improving their expectations levels, and the main reason behind this is the growing IT Boom.


Ø  Need of accommodation facilities for employees of multinational companies such as IT, BPO at Bangalore.

Ø  Invasion of large Corporate sectors houses and expansion of the existing MNC’S.

Ø  Investment by NRI’s in the quality developmental/ residential projects to own a house or an apartment in Bangalore.

Preferred city:
As we know, the city of Bangalore attracts one and all due to various reasons, such as:
Ø  Easy availability of potential manpower
Ø  Pleasant weather
Ø  Descent standard of living
Ø  Good social life, recreation and entertainment facilities

Nevertheless, above factors overshadow the unpleasant side of the Bangalore City such as poor infrastructure, development, inefficient administration of the public and statutory bodies, etc.

The government, after realizing the pathetic condition of those who are in desperate search of a ideal property, yet hesitate to proceed due to unaffordable prices.The neighboring suburbs such as Banashankari, Hosur road, Mysore road, Whitefield, Bellary, Yelahanka, Devanahalli Road, and other places, where land rates are comparatively more affordable and reasonable compared with Central Business District.

The residential market in the city is witnessing increasing demand especially in the south-eastern and eastern parts of the city resulting in over 50% increase in value of the property, whether flat or vacant land, within last one year.

Foreign Direct Investment
The Government in Feb 2005, relaxed the ban on Foreign Direct Investment. As a result of the said relaxation, investment over the real estate in Bangalore has increased incredibly, not only by Indian investors, but also many enthusiastic foreign investors and the investment is estimated around 2 billion US$

B.D.A. ROLE
In order to cater to the fast growing demand for owning a house at Bangalore, initiative was taken by BDA, which formed three new layouts at Banashankari 6th Stage, Visveswaraya Layout, and Anjanapura Layout. Though the BSK 6th stage, Anjanapura and Visveswarya layouts were formed a long time back, nothing much have been done for its development. All the said layouts are not habitable at present. It may take another 5 to 10 years to live comfortably in these layouts.

The said layouts have been formed by BDA but have miserably failed in providing civic amenities such as sanitation facilities, electricity, water supply and various other facilities such as Road, Shopping, Parks. Etc.As regards the more expected layout at Arkavathy is concerned, the same was delayed for quite some time due to unnecessary legal battles initiated pertaining to the commencement of the said project.However, the developmental activities was permitted to commence by the Hon’ble High Court,but any such commencement is still expected from BDA. It may take some more time for everything to get into order.

The same holds good with respect to the BMIC project and the Hi-tech City on Sarjapur road. Nothing is in order right now and a fast and sincere initiative should be taken by the Government to set right all the above.

Government duty
Government is not encouraging the private builders to form layouts approved by BDA. Though, the private builders have sophisticated building excellence and potential man power, they are hesitant to proceed with the venture due to constant variation of government policies on guidelines and restrictions imposed on the developmental activities undertaken by such private builders.Thus,owning aproperty in Bangalore with good civic amenities and at affordable would virtually become a dream, especially for people who aspire an apartment or a vacant land for affordable prices. Now burden lies on BDA, BMRDA and KHB to expedite quality developmental activities for the reasonable rate with all the basic civic amenities.

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