Property market saw a boom all over the country during
the last few years, and the prices of properties made it impossible for a
common man to think of buying any property in Bangalore during this period.
Seeing this sudden boom in the real estate market, many developers entered into
the real estate market in Bangalore, since Bangalore was considered to be the
fastest growing city in the country.
No doubt, Bangalore is one of the fastest growing
cities of the country as could be seen from the launch of major infrastructure projects, like construction of flyovers, widening of major and primary roads,
construction of grade separators, under passes, Metro rail, Mono rail etc. The
city has grown not only in area but also in population. Bruhat Bangalore
Municipal Corporation now has within its jurisdiction 110 villages, Seven city
municipalities and one town municipality surrounding Bangalore and thereby the
area which was just 250 sq. kms is now almost 900 sq. kms.
The population which was about 40 lakhs is now about 80
lakhs. The entry of a number of multinational and IT, BT companies has also
contributed to the growth of the city in the past/ two decades. The growth has
not only attracted the young job seekers, but many educational institutions
have been established in and around the city of Bangalore where in students
hailing from various parts of the country and abroad seek admission in various technical and managerial academic courses. All these factors have contributed
to the growth of population of the city of Bangalore.
As the Bangalore city is now considered to be the
destination for investment in trade and industry and the increase in population
has automatically created a greater demand for accommodation both in commercial and residential sectors.
Most of the owners of residential/commercial properties in Bangalore are expanding their built up area by constructing many upper
floors to meet this greater demand. To some extent this step may meet the
demand for accommodation in the city.
When this upward trend in the real estate sector was in
full swing, then the came the global recession and the recession has greatly
affected the real estate industry, particularly the construction sector. Buyers
were forced to defer their investments strategies for various reasons. As a
consequence thereof, there remained a large number of flats vacant awaiting the
prospective purchasers. This trend continued till recently and the property developers were under great strain. However, the situation is now slowly
improving. The demand for accommodation, both for commercial and residential,
is now much improved. Developers, who have developed the properties and were
not able to sell their end products, will now be able to dispose them of. To
off load their finished products, the developers who are ready with their
completed projects are offering various incentives like concessions in prices,
provision of swimming pools, clubs, gyms, small markets, gardens, playgrounds,
easy payment schedules, etc within their project area. With these incentives
and facilities it is expected that the buyers will now get motivated to invest
their money in real estate market. The present situation seems to be quite
favorable for middle and higher middle class people for investment immovable
properties.
The demand for residential accommodation being very
high the developers hope to sell their properties. In addition to this, the
authorities, though late, have realized that the needs for basic infrastructure
in all the localities have to be met expeditiously and are now responding favourably to such demands of the people.
Now that the infrastructure development activities are
in full swing and the property developers too are providing some of the basic
infrastructure needed within their project areas, banks are offering required
funds in the form of long term housing loans, it is hoped, the prospective
investor in real estate would come forward to invest their money on the
immovable property to own property of his in the city of Bangalore. The real estate pundits also feel that it is the appropriate time for investment in the real estate since the real estate market seems to be steady and investor friendly.
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