Within a few years, the dynamics of the real estate market of Bengaluru has grown very rapidly. Bengaluru has become the most desirable place for many people whether they belong to middle class or high class. A large number of people start moving to Bengaluru to settle down whether for their business job or even to buy their own house. Bengaluru is also well famous for its great computer industry there. It is also called the Silicon Valley because it is considered to the hub of IT or Information Technology. Besides selling or buying properties, people are also interested in rent out flats and homes at a larger scale.
With the increasing demand in the real estate market, whether residential and commercial people are also looking for reasonable prices to buy some property for themselves. Large lands that are barren at some time now start developing, roads infrastructure is improving, facilities like electricity and gas are currently available and these all improvements are playing a great part in raising the prices of real estate market. If you are looking to buy property, you must consider Bengaluru and its nearby places to invest because the prices are still in control and it will prove to a productive investment shortly. Most of the people are coming to Bengaluru and settle down are the job employees who come to work in IT firms as well as in automotive industries.
Reasons behind the increase in supply and demand:
It is important to look at the reasons behind the rise in demand and supply in the real estate market. You will see the rapid increase in the prices of both commercial and residential areas property. Here are the reasons behind this fastest change.
- The first and foremost reason is that people are starting migrating to Bengaluru from other places for work and residence at a higher ratio.
- Because of Silicon Valley, there is an increase in commercial offices.
- Improvement in the infrastructure of cities and town.
- The thing is to be noted that there is the difference in supply and demand for residential and commercial properties. The market is also affected by construction cost and financial constraints.
We will discuss this increasing trend in residential and commercial separately.
Real estate market analysis in residential areas:
With the past few years, there could be seen an obvious trend in the increase in the real estate market. People are demanding to buy club and luxury houses now.
If you visit online sites, you will find the property on selling and for rent in multiple areas. There are many clubs, villas land to be sold.
This is the perfect time to purchase property in Bengaluru because in the future you will face a shortage in property supply. This shortage may occur due to the following reasons.
- Maybe you can get enough labour.
- There could be a delay from authorities in signing and approving your application and in the completion of the whole process.
- You may feel financial pressure due to the high cost of construction.
- Due to increase demand of properties these days, In future, there will remain limited land to purchase, or you may face unavailability of residential land areas.
- On the other side, there could be a high rate of property that you will not be able to save up to buy land for a residential area.
Real estate market analysis in commercial areas:
You will be amazed to know that the commercial area estate market is spreading magically with the past few years. The main reason behind is the development of information technology business and companies there, due to which people started migrating to search for a job. The government of India now planned to spend a large sum of their budget in the real estate market of commercial of Bengaluru to promote and develop the industrialisation in this area. Due to this decision, the demand for commercial areas land has risen to a high level.
Bengaluru is also a hug of e-commerce sites, which attracts people from different areas and increase the demand.
The condition of the real estate market after a metro line in Bengaluru:
Transportation is the real issue of people these days. The expenses are so high that not everyone can afford his private vehicles. Public transport is cheaper than private transport, but you find a huge hustle and bustle of people on these buses and vans. You hardly get a seat to sit or sometimes a bus to carry on your routine job. In this, situation people want to adopt the residential area where they can find the public transportation easily and on low rates. Bengaluru launches green line metro to facilities the people, and that plays a crucial part in the increasing demand for real estate business. These green metro lines join Peenya to the central business district and south Bengaluru. Due to this type of projects, property demands increase easily, and people wanted to invest near these projects to facilities their daily work.
IMPROVEMENT IN REAL ESTATE MARKET DUE TO PROFESSIONAL BUILDERS IN BENGALURU:
Professionalism in Bengaluru builder is the other reason due to which real estate market is growing and developing. When a person spends a big amount while purchasing land, he also looks for a professional person to carry on the construction process with the low risk. Many commercial and residential owners believe that the builders in Bengaluru are more professional than in other cities. This is the main reason that people are converting to buy property in Bengaluru due to minimal risk and this helped a lot in developing the real estate market of Bengaluru.
Why invest in the city like Bangalore:
- It will prove to the best decision to invest in Bangalore because the prices will get higher with the time.
- If you sell or rent out your property, you will get the profit above your expectations. Due to people migration to Bangalore, it will be a fruitful decision to rent out your property to those newcomers.
- Economic growth is towards progress in Bangalore, it will grow more with the time, and hence it is the best place to invest and making a living.
- IT industry is another big reason to invest in a place like Bangalore.
- Are you Want to have a luxury house at an affordable price at some place? You will never find such a luxury home at affordable prices like in Bangalore. You can check in Devanahalli for land and homes.
- You can choose the best locations like Sarjapur because real estate agents claim that a good location always affects your investment. If you get a piece of land at a good location, it proves to be the best investment.
- You can avail the opportunity of easy home loans to buy your own dream house if you cannot afford a big amount at the same time.
- RERA brings favourable things for homebuyers in Bangalore.
- Prices of property in Bangalore are still much affordable than other cities of India.
Challenges to the real estate market in future:
In future, the real estate market maybe follow some challenges as mentioned below.
- Strict rules and regulations:
Regulation and rules of real estate markets are getting tough day by day. in the coming year may be the government account strict rules about the construction of the new residential and commercial building as well as the completion of projects. This will be a challenge for many people and investors in the nearby future. Maybe people due to some reasons could not fulfil the deadlines issued by the authorities for the completion of a project. - Clearance issue:
Another biggest challenge the real estate market face in future is the delay in the clearance process. Authorities take almost a year to two in the completion of the process. Sometimes they took a very long time in answering the one file. Single window clearance is a serious issue for real estate developers. The more you project clearance will be delayed the higher the construction cost will be. This clearance delay will bring down your property project. - Limited home loan interest:
The third most important factor is the limitation of home loan interest. Government is increasing the tax on home loan day by day, which is a serious problem for homebuyers. The tax on home loan should be revised and set to a limited amount so that people can make their purchase conveniently. This will be a huge benefit for all homebuyers. - Labour cost:
Another not forgettable thing is the higher cost of labour in future. Real estate business needs labour intensively. If the labour cost goes high, then it will become difficult for middle-class people to pay for their house construction. Increase the price of labour and construction material will bring difficulties to many people. - GST rate:
GST rate is also very high due to which real estate market is facing the problem, and it will prove to be a roadblock for them. Home buying itself is a big investment so government should revise the increase GST rates to facilitate the real estate market.