Property in Bangalore Still Feeling Demonetization’s Sting

The effect of demonetization upon property in Bangalore is still being felt nearly two and a half months after note ban was implemented. Despite the fact that largely end users drive real estate property in Bangalore, demonetization has lead to a slump in property in the city.  Demonetization has led to a drop in sales volume in both the secondary and primary markets, experts believe that it may take as long as three to four quarters for real estate activity in Bangalore to rise back up to pre demonetization levels. About to be announced new projects in Bangalore have also been put on the backburner.

Disappointing Final Quarter

While in real estate the final calendar year quarter is usually when most of the buying and selling of property in Bangalore occurs, this year’s final quarter has been a gross disappointment. The reason for the lukewarm final quarter is the demonetization of high denomination notes in early November last year. In the last months of the calendar year property transactions usually rise by five to six percent, however this year the number of properties bought and sold remained subdued.  

The Cause and Effect

The primary reason for the less than celebratory real estate sales during the festive season in Bangalore is due to the actions by the center to demonetize five hundred and one thousand rupee notes on November 8^th of last year. The Akrama Sakrama scheme and the drive again illegal constructions in Bangalore have also played their role and are a cause of fewer real estate deals in the city this quarter. As a result of the above-mentioned factors, Luxury property in Bangalore were shelved and many investors withdrew from investing in projects in the city.  

About the Primary Market

In Bangalore, mid segment houses are priced up to sixty lakhs and such flats for sale in Bangalore usually account for nearly fifty percent of the number of units sold in the primary market. This year however demand for such homes did not rise as expected as many buyers preferred a wait and watch approach before choosing to venture into real estate in the city.

Real estate insiders also believe that there is a trust deficit between builders in Bangalore and buyers due to the note ban, which has led to fewer transactions this year. Even the lower home loan interest rates announced on January 1^st did little to infuse the real estate market in Bangalore with a positive sentiment.   

Fewer Takers For Seconds

Due to the note ban, fewer buyers are willing to buy in the secondary market, as most consumers prefer to adopt a wait and watch approach. The buyers psyche leads him to believe that there will be a price correction while at the same time that sellers are unwilling to sell properties at low price, which may hurt them financially. The confusion over the Akrama Sakrama scheme has also led to fewer buyers buying real estate in Bangalore at the end of last quarter and in January of this year.

The Ground Reality of Bangalore Realty

The Availability of New projects in Bangalore has fallen drastically since October of last year as builders and developers in Bangalore have shifted their focus toward completing ready to move in projects. The supply of new projects in Bangalore fell by nearly four percent in the final calendar year quarter of last year. Furthermore a trust deficit between the government and builders in Bangalore has led to fewer new developments in Bangalore. Many builders in Bangalore today are considering raising funds for development via joint ventures rather than through high interest rate bank loans.

Conclusion

The market is expected take up to year to bounce back but will become more infused with vigor due to the implementation of RERA as well as the GST both of which will add greater transparency to buying and selling real estate in Bangalore.

Why is Sarjapur attracting the home buyers in Bangalore?

The locality Sarjapur in Bangalore is the centre for some the best luxury apartments in the city. The pure green environment flanks this area. The projects are perfectly placed surrounded by nature. In this metro city, one can breathe fresh air and have an enriching lifestyle.

The luxury apartments in Bangalore are no longer a dream as everything is much more accessible from Sarjapur Road. The property market in Bangalore a few decades ago was concentrated on the affordable houses, however, things have transformed dramatically in recent times. Now the top residential real estate in Bangalore is aiming to make luxurious villas. All these builders are providing the state of art amenities to the dwellers. 

Spacious living rooms with large windows are designed to provide ample natural light. It is one of the prominent features of the luxury apartments. The modular kitchen is fitted to provide the best style of living to the modern families. The bathrooms have very stylish fittings, which are bound to make bathing a special experience every time. All the projects have adequate green space to provide a healthy life to the people.

Some of the key reasons why the luxury apartments are creating wave of excitement among buyer's section:

Boisterous IT/ITES sector -According to an industry report, the IT and ITes sector of the Bangalore is sailing high on waves. This rising sector constitutes young homebuyers who now want to explore excellent living standards. They are financially sound to afford it.

Good Appreciation-The city of Bangalore is providing a good return on investment (ROI) as compared to the other leading metros. This is drawing eyeballs of many investors who are looking to gain decent profit from the property.

Good Location- All the projects are offered in the best locations of Bangalore city. Sarjapur is one the locality that is developing many luxury apartments.

Advancing Infrastructure- The infrastructure of the Bangalore city is fast developing and connectivity via all the modes like- road and metro rail is connecting all the corners of the city.

The growing infrastructure and development taking place in the city are attracting the homebuyers and making the city livable. There is a need to boost the growth of residential spaces so that the homebuyers and investors invest more in the area. It is a great time to invest in Sarjapur as it will provide a high return on the investment.

Is Bangalore a hot pick for real estate?

 

Many people is discussing downsize in the real estate business. There are potential number of deals, rejected or are not closed down at the last moment at places like Chennai, NCR and Mumbai but the distinction of the Buy Property in Bangalore is that during this gloomy environment the market is performing exquisitely well. There is a huge transit populace, which is choosing to settle down in Bangalore.

Let us check out the places where top residential projects in Bangalore are located-

 

·         North Bangalore- The northern part of Bangalore is going to experience rampant growth. The major contributors of growth of this area are proximity to the airport and easy connectivity from other parts of the city. These factors are making north Bangalore a good option for the homebuyers to invest in property here.

·         East Bangalore- Some people feels that the growth process in the eastern Bangalore is completely exhausted. However, in this area few construction activities are still going on. Areas like Whitefield and Sarjapur have developed excellently in past few years but there is scope for development activities further. Other areas in this part of Bangalore are –Varthur Road, Kadugudi and Hosekote.

·         South Bangalore- South Bangalore is relatively a quiet portion of the city. There is greenery and parks available in the area. The appreciation in this part of Bangalore is much less but undoubtedly, the quality of life of high standards. The veteran population of Bangalore still loves to live in Southern part. The major areas that are attracting buyers’ are- Bannergatta and Kanakapura road.

 

·         Central Bangalore- Central Bangalore is more of a commercial area and has better prospects as a business hub.

·         Western Bangalore- The western part of the city is commercially very well developed. However, few options are still available for construction such as areas 'Magadi Street' where there is huge scope for investment.

Bangalore being the Silicon Valley of India provides large-scale employment to many young professionals. This is a reason why there is growth in luxury flats in Bangalore. For all the employed professionals and local people, the real estate has become a requirement. Hopefully, it will push substantial demand for properties in the market.