BANGALORE: The new government with a clear majority and interest rates dropping seem to have given a boost to the Bangalore residential market. In the last couple of weeks the market has witnessed a surge in bookings, especially in the mid-segment market. What is interesting is that this surge is being driven by mid-level businessmen.
“In May alone I have been able to help book about 22 residential apartments in the Rs 60-80 lakh segment. And about 60 per cent of this has been bought by businessmen. About a couple of months back however, though this segment showed interest, they were putting off the buy,’’ state Yeshovardhanan S, a property and marketing consultant for several top builders. “I would attribute this to two factors viz, drop in interest rate and the hope of several pending contracts being approved with the establishment of the new government.’’
Given that property prices here have been relatively stable in the past few years, makes Bangalore attractive for this segment. With the IT segment not willing to open its purse strings as they used to do previously, it is this mid-segment of businessmen who are now driving the market.
“It is not that the Bangalore market is no more IT driven, but in the short term, the small and mid-segment businessmen from the manufacturing segment and other businessmen with a turnover of approximately Rs 15 crore annually, are currently opening up their purse strings,’’ observes Yellnadi Apurv, Proprietor, BLS Developers. “The expectation that ongoing projects should be completed and delivered on time has given an impetus to this segment.’’
With the Real Estate Regulatory Bill and the Land Acquisition, Rehabilitation and Resettlement Bill having been approved by the cabinet, realtors expect the Bangalore market to grow further. In fact developers predict an impressive growth in the latter half of 2013.
“A step like this that brings in more transparency and accountability into this segment is good for Brand Bangalore, in the domestic as well as in the global market,’’ observes Yeshovardhanan.