Bangalore Witnesses an Increased Demand for Luxury Homes Much Amidst a Booming Trend in Real Estate- Raja Aristos Cases Info

Bangalore is seen to be the latest realty center of the country. The city has also seen many Business Process Outsourcing (BPO) and Information Technology enabled Services (ITES) companies setting up offices in Bangalore. Hence, due to this the city is seeing an increased need for residential and commercial properties There was an increased need for office spaces when it comes to the commercial segment of the Bangalore.

Primarily there are seen to be two reasons for this. The first is that there are companies which are on an expansion mode of their office floor area. The second reason is that there are numerous IT companies which are forming a base in Bangalore. These two factors are seeing to it that there is an upward trend in the demand for residential spaces. This shoot up in the number of companies in Bangalore is also making the realty players, both from big to small ones to form attractive projects.

In Bangalore, the realty scenario has seen increased and active growth. Moreover, there has also been seen a progressive purchasing style from customers who have the aim to buy flats, villas and plots in and around Bangalore. It has been noticed that Bangalore has seen a strange pattern which is akin to the phenomenon across the world. There has also been confirmation on this style what with the detailed studies by various managements, related research organizations and real estate funds. What is the significance of this pattern is that it depicts that there has been seen an increased development in the outskirts of the city rather than the Central Business District (CBD) or the inner city area. Usually, BBMP areas are prominent in the CBD area.

Sahakar Nagar, RT Nagar and Hebbal in North Bangalore have come across as the best performing areas when it came to residential real estate. All through the year, these areas have been seeing an increase in appreciation for residential property and upward trend in demand. North Bangalore is fast emerging as the residential destination that is much sought after owing to the fact that there is proximity to BIAL, improved infrastructure in this region, besides complete greater connectivity.

In West Bangalore, Magadi Road, Vijaynagar and Tumkur Road are fast coming out as prime spots which are witnessing a constancy in demand owing to the fact that there is development of Metro line. The Metro line is slated to provide greater connectivity. Kanakapura Road is another layout that has already witnessed the greater advantages of Metro connectivity. What else is making the area emerge as the hot spot is the availability of Cauvery water and the establishment of the NICE Road (The Bangalore-Mysore Infrastructure corridor).

Moreover, what has been witnessed is that there are greater investments that have shooted up in the IT industry besides the tendency to spend and the salary to spend has also increased. What more has led to the boom of this sector is that in the year 2005, there has been a revision of the FDI policy.

Indian Realty Has More Room for Improvement - Raja Aristos News

Though 2013 proved to be a roller coaster ride for the Indian realty sector, towards the end the chances were favorable for a recovery, and it is expected to continue in 2014 as well. As of now, the sector is on the verge of a recovery, but not yet arrived at a safer pace.

However, both developers and customers are confident of further improvement especially after the upcoming general elections.

What is expected of 2014? Many experts point out that certain problems are likely to carry forward as they are unresolved, mainly during the first few months.

The prevailing problems include high levels of inflation, delay in project completion and delivery, financial fluctuations, unsold properties across the nation and reduced consumer interest.

Amidst the challenges, one respite was that the last year saw increased funding from NRIs into realty, yet, didn’t bring in the expected results.

Therefore, the time calls for reformatory actions from the Government, and there is hope that it would happen with the upcoming budget.

The budget would be realty friendly if more funds are allocated to the sector, by the new government taking charge post elections. Yet, the possibility for these expectations to revise cannot also be ruled out. Therefore, a lot depends upon the budget.

There have been attempts to correct the issues in 2013, in the form of new policies and regulations into sector, examples being the ‘real estate regulatory bill’, ‘land acquision act’ etc.

Though there are positive aspects, there are drawbacks with both these reforms, as both are likely to increase the construction cost to a very great extent.

The implementation of REITs, or the Real Estate Investment Trusts, seemed to be a well thought after decision, but it is yet to see whether it would bring the desired results.

The REITs were considered as an attempt to enhance the transparency in the sector. The Trusts, failed during the initial formulation owing to the economical imbalance. Therefore, the focus should be on not letting it happen again.

The escalating prices prevailed throughout the year 2013, and continue to affect this year’s realty prospects as well. The high prices forced buyers to wait for favorable times which significantly affected sales across the nation. Inventory pile-up was happening in a rapid phase and there were delays in new launches.

Experts are concerned that these issues might prevail in 2014 as well, in the first few months for sure. As the year progress, a reduction could be possible with less number of new launches.

Buyers are predicted to show alertness towards properties, say recent reports. All in all, housing markets are anticipated to observe steady capital values excluding those projects that are over-leveraged.

However, Indian realty sector continues to retain its global perspective as a great investment option and the on-going and upcoming infrastructure projects might enhance the status of Indian Metros as great housing options.

Indian realty sector is a great option, and with the right measures brought in, its image on the global level is likely to remain the same. 

Raja commonfloor states on commercial Realty Sector Plunge: A Harsh Reality Post the Economic Slowdown

Amidst reports on the possible recovery of economy as well as Indian realty sector, the impacts it left behind seem to be a matter of concern. Here is focus on the influence on one of the key revenue-generating sectors, the commercial real estate.

Though appears to fall on the right track, the housing sector is still far away from total recovery. Delay in project completion, lack of demand and inventory pile-up has had their impacts, calling for immediate implementation of the right measures.

The situation prevailing in the commercial sector is not much different from its housing counterpart. The weakening economy has forced companies to downsize or relocate, thereby reducing the demand for more office space.

Much of this reduction in demand happened during the third quarter in last year. Submissive demand along with high vacancy rates have made the conditions in commercial sector a bit tense, thereby calling for reforms to take place.

Contrary to the present financial and political setting, demand for retail real estate is likely to continue to be submissive in the immediate period. Corporates are anticipated to go on with their focus on optimum space utilization and cost cutting activities and transaction works are estimated to be inadequate concerning small and intermediate space. Lack of supply is expected to cause burden on rental as well as capital values.

Still, the ongoing recovery phase is likely to continue considering the fact that the rupee has recovered and is on the way to progress. In addition, non-resident buyers are now legalized to buy shares, whereas local firms are given sanction to invest 400% of their assets in overseas markets at present.

During the following 6 months, CBRE Research assumes that reforms would be approved so that the international exposure to Indian banking sector is increased thereby promoting investment from potential sources. 

Here, the export sector deserves a mention which plays its part perfectly with signs of improvement. And, of late, there are seen efforts to curb import activities and enhance export sector. All in all, scenarios for an enhancement in the exchange segment and India's foreign balances look absolutely superior than they did a few months ago.

The Monsoon season was with positive changes this year as compared to last year and yielded good agricultural productivity. Food prices had peaked during the recent time of crisis, further worsening the situation already affected by the weakening economy. With more productivity, the food prices seem to be in for a downward change, further easing the monetary imbalance.

In a nutshell, Indian economy can revive but with adequate and timely support from the governing bodies, regional as well as central. 

Experts emphasize on few key points for bringing in the desired results:

·         Allow more foreign investment

·         Boost investor sentiment

·         Identifying key areas with great potential

·         Bring in laws for fast-track approval

·         Exceptional economic management

·         Industry-centric approach

·         Easing rules regarding foreign investment

·         Set clear guidelines

·         After initial sectors, expand activities into other states as well.

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