Monday, 7 April 2014

PROPERTY INVESTMENT IN BENGALURU




After economic recovery, the days now appear to be favorable for capital investments like investment on property buying. The developers who have invested huge sums are likely to offer the developed properties to the prospective buyers, providing all possible facilities. The competition among the developers will be quite beneficial to some extent to the customers who have been waiting for investing funds in real estate.

As on today, it is said, a large number of fully developed properties are available for disposal in the property market. It seems to be true if we go through the advertisements appearing in newspapers, magazines, hoardings, TV Channels etc. relating to property market. Apart from media publicity, if one takes a stroll in the city, one would find 'to let', 'flats available on rent' etc. on newly built residential spaces, as well as on ready commercial buildings. Some developers are offering sites of various dimensions, ready villas, flats in apartment buildings all around the city outskirts, with all possible concessions. However, it is not known for certain as to how many flats and commercial units are vacant as of now as there is no agency to collect such information. But one thing seems to be true is that a large number of flats and commercial units are vacant and available for immediate occupation.

With the availability of large number of ready units both in residential and commercial segments, there is a good amount of competition, resulting in offering concessions and benefits to the prospective buyers. The benefits like club houses, swimming pools, gardens, schools, shopping complex, markets, play grounds, Tennis, Badminton courts etc., are commonly advertised by most of the property developers depending on the size of the project developed by them.

Another aspect commonly noticed is that the property developers are now indicating the various approvals obtained from the concerned authorities. In addition the customers are helped to obtain financial assistance from various banks and financial institutions. The developers are showcasing their projects through Property Melas organized by various agencies and their own associations at regular intervals. All these actions help the buyers to choose the property for investment.

It is a known fact that of all the investment options, the best is real estate for investment for the simple reason that the property market will not go downside because the demand position is ever increasing.Also the property value always gets appreciated over a period of time.So far as residential units are concerned, there would never be any downtrend in property values. Appreciation in value is phenomenal.

Why there is no downtrend in values of properties? There may be a dull period some times in property market but that is only for a short period, when people do not  come forward to buy property in the view of rising prices of construction materials, labor wages, consequently increase in the cost of the projects etc. The project cost goes up for various reasons and sometimes due to litigations. This however does not affect the property market except that there will be some delay in sale or purchase for a brief period. In such an event the prices remain static but will not go down. During such period developers will not sell their products below their cost price level as they cannot afford to suffer any losses.

After such brief they for certain know that the market will open upwards, from where it was stalled. With no supply during such lull period the demand for accommodation keep up moving upward and the market when reopens, the supply position gets a boost. The property developers naturally stand to benefit once the market resumes with upward trend. As for buyers the present situation seems to be quite favorable as the market is showing upward trend and the developers are interested in disposing of their products with various concessions and benefits and assistance for securing financial assistance from banks and financial institutions.

Investment in property whether a flat, a bungalow / villa or a site is best for a simple reason that the value will always be appreciating and the demand for such properties will always exist. However the buyer has to take care, verify all the details about the property like it being free from litigations, the price offered and various necessary approvals etc. before finalizing the buy since buying the property is a onetime deal in life time for an average buyer.

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