It is the common view that the real estate market in
Bangalore presently is not on a very strong footing since a large number of
residential flats and commercial places are lying unsold for a quite some time
now.
Properties are developed not only by the reputed property
developers, but also by not so reputed developers and by the entrants to the
real estate industry.
The development activities are mainly concentrated on the
north and south of Bangalore in view of the existence of establishments of
I.T.IB.T. Sector as well as the fast track progress of infrastructural work in
these areas with the hope that their end products could be sold at much ease to
NRIs and the people connected with ITIBT sector.
In view of the recession in the past couple of years, most
of the flats constructed have remained unsold and it is difficult to know the
number of flats unsold and lying vacant since there is no agency to compile the
statistics about the real estate industry.
Housing needs being one of the basic necessities, keeping in
mind their financial capacity, many people have restricted their requirement to
one bed room (1 BHK) flats instead of 2 BHK or 3 BHK flats though one bed room
accommodation may not fully meet their requirements. Considering the demand for
1 BHK flats many developers have started concentrating on the construction of 1
BHK flats to meet the requirements of a large number of people. The rise in
property prices could be result of the sudden spurt in property prices on
account of boom in the real estate industry during the early years of the
decade.
The situation in the beginning of the present decade was
quite favourable for the real estate industry. However from the year 2007 the
market started showing downward trend and the sale of developed flats and the
commercial spaces was affected. Experts in the real estate market feel that the
current year may be brighter for the industry in view of the growing demand for
residential as well as commercial spaces.
Though some people say that the real estate market is
showing improvement, nothing spectacular is seen nor is it likely to be seen
immediately in view of the continued recession. In view of the rising prices of
all the essential commodities it is difficult for the people to think of buying
properties or commit for buying properties now.
The present situation seems to be dim, looking to the market
condition, particularly of the essential commodities. People are not interested
to commit themselves to invest in projects to be taken up or those which are
under construction, by the developers. The reasons for this attitude of the
people are plenty. The main reason is that the projects generally do get
delayed or prolonged inordinately, and the developers do not adhere to their
promised time schedules for completion of their projects while they insist on
payment of installments according to the agreements. If there is no progress in
the work as promised by the developers the buyer cannot be expected to continue
to pay the installments as per agreements. Both the buyers and the developers
do not believe each other and the result is that the projects are not completed
and also in some cases, the parties go to courts for resolving their disputes
leading to further delays in completion of the projects. Only when the
developer and the buyer resolve their misunderstanding, if any developed
disbelieving each other, things may move in a congenial atmosphere.
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