Bangalore Real Estate is on an Extension Mode

In the past few years, Bangalore has emerged as the fastest-growing city of the country. The major cause of real estate development is the development in IT sector. Bangalore is known to have a multi-cultural population with excellent educational institutes, constantly upgrading physical infrastructure and good social infrastructure. Right now, the most promising residential micro-markets are Sarjapur Road, Outer Ring Road (ORR), northern parts of the city and Whitefield.

Luxury Residential: Bangalore is considered to be the third-largest cluster for high net worth individuals (HNIs). The city is known to be home to around 10,000 individual dollar millionaires and has a huge base of emigrants. With this thing in mind, there has been a huge demand for high-end residential apartments in the city.

Mid-Income Housing: This sector sees the drive from the people working in the ITeS and IT industry. The prime driving factors for this section are proximity to workplaces, social infrastructure, access to medical and educational facilities and good physical infrastructure.

Affordable Housing: This sector sees extremely price sensitive buyers. The places which have seen a high demand for this section are Hosur Road, Mysore Road, Kanakapura Road etc.

There has been seen an increased demand and housing projects have seen an increase in capital values. They are currently priced higher than or similar to mid-income projects.

Overall Demand Scenario: The city’s market has seen an absorption of 6,519 units in the 2nd quarter of FY’13. This was as against 6,689 units in the previous quarter.

Supply: All in all, 21 residential projects were launched around Bangalore in the second quarter. This offered 9,889 units against 10,009 units in the previous quarter.

CBD & SBD: This section is seeing a high demand and low supply. Owing to availability of high capital values large land parcels, these micro-markets have seen a constrained supply of residential developments. These markets are considered to have good physical and social infrastructure.

Industry’s Biggest Issue Is To Get Land In Karnataka

One of the big industrialist says that after a number of visits to the area over two-three years  he has now got the consent from farmers to acquire a land about 150 acres to establish a thermal power plant in north Karnataka. He says that he has reduced the size of his project because is not able to get the land which he needed. He says that still he requires at least 60acres which is agreed by the government. Industrialist says that he is running for that from many years but not any notification is issued for the land acquisition. Today Karnataka is a hospitality state for medium and large industry.

Few companies are still struggling from many years to get land in Bangalore. Acquisition of land in Karnataka for medium and large scale industries is one of the most expensive, time-consuming and frustrating process says one of the directors of the company. Acquisition of land for industrial projects in Karnataka has become a challenging task. And it is also stated that the single window-clearance facility to go long way to make it as effective.

Industry Analysts says that most of the allotment is made to small scale industries which need 5 to 10 acres. Here also there’s a big problem where allotments made to people whose main intention is to later sell the lands for higher rates. An entrepreneur says that due to the involvement of the politicians getting into this and raising the price of the land has made the farmers to expect unreasonable price for land. One of the Associations tried to settle with the politician’s but the company did not accept it because the demand was so high. Industrialists say the government has to at least find a way to make these approvals time bound.