Commercial, retail segments pick up pace in Bangalore
Jan 04, 2014
Source : The Times of India

 

BANGALORE: For the real estate sector across India, year 2013 did not bring much activity and the same was for Bangalore too. However, the Bangalore real estate market showcased a stable picture, in terms of pricing and actual transactions. The developers have now pinned their hopes to 2014 and expect that with the country-wide realty sector set to gain momentum after general elections, Bangalore will be benefitted as well. The city is driven by the information technology sector and with major IT companies planning expansion in the coming months the real estate market expects growth.

Commercial segment

The current trend in Bangalore is stable with low growth. Year 2013 has been flat but in the next few months the trend is expected to improve significantly. The off-take will be higher in the IT sector, due to the falling rupee value we expect IT majors to add more staff. The sentiment is also expected to show significant improvements after elections.

Retail segment

The retail segment will show great improvement as a result of the recent Foreign Direct Investment (FDI) policy change, which allows overseas retailers to have a stake in brownfield projects. It will ease financial issues of retail segment which have been hard-hit in recent months. The policy change will see high growth in retail malls, ie both stand alone as well as malls forming a part of integrated townships, as opposed to high street retail shops.

Residential segment in Bangalore and Chennai

Year 2013 has shown a steady growth in both cities in the budget segment of Rs 50 lakh to Rs 1 crore, which is expected to continue in 2014. With numerous projects on the anvil there will be a high supply in the housing sector. This will stabilise the pricing in the real estate sector. It is expected that RBI will ease interest rate of residential loans, fostering a better demand. In the luxury and uber luxury segment, the demand is expected to be stable in 2014. Hence, developers will be able to maintain price and sale velocity.

In 2013, a fairly robust demand was witnessed in the Rs 50 lakh to Rs 1 crore bracket. In the ticket sizes above Rs 1 crore the demand has been affected. However, more than expected NRI sales in this segment had stabilised the demand. We see this trend improving significantly in the residential segment across all ticket sizes in 2014.

Latest Realty News

Office space absorption in Apac: Bangalore to be ‘2nd-most sought after’
Jan 04, 2014
BANGALORE: Bangalore is expected to see the second-highest office space absorption in Asia Pacific (Apac) region for 2014 after Tokyo, according to real estate services firm Cushman & Wakefield. According to the report, the southern metropolis is set to absorb 5.6 million square feet (msf) office space, a growth of 16% over the previous year, with most of the demand coming from the expansion of the IT, ITeS industry.
AIG to sell Indian AMC business to Canadian fund
Jan 03, 2014
BANGALORE: AIG Global Real Estate has agreed to sell its Indian asset-management business to Brookfield Asset Management as the New York-based privateequity fund of American International Group is closing its operations in the country, a person with direct knowledge of the deal said.
Novartis India strikes 8.7 lakh square feet office space deal in Hyderabad
Jan 03, 2014
BANGALORE: Pharmaceutical firm Novartis has picked up 8.7 lakh square feet of office space in Hyderabad in a bid to consolidate its operations in the city.
HNIs bail out realtors, but for high returns
Jan 01, 2014
BANGALORE/NEW DELHI: Some ultra-rich Indians have found a new way to bypass the economic slowdown and make mega returns on their investment. According to analysts and industry players, real-estate developers across the country are being bailed out by high net worth individuals (HNIs) by offering short-term loans to meet developers' funding requirements to finish ongoing projects.
‘Don’t treat aerospace park in Bangalore as a real estate project’
Dec 31, 2013
BANGALORE: The aerospace industry in Bangalore has the potential to achieve $20 billion in revenues over the next 10 to 15 years if the state government is able to nurture an ecosystem that attracts global companies, said the India head of UTC Aerospace Systems (UTAS).
Prestige ties up with Disney for branded homes
Dec 30, 2013
BANGALORE: Southern real estate major Prestiqe Estates Projects is collaborating with Disney India to develop its largest residential township project spanning 102 acres in Bangalore's IT hub of Whitefield.
High-end homes gain prominence in East Bangalore
Dec 28, 2013
BANGALORE: In the mid-1990s when the road to far-off Whitefield was upgraded, it was rumoured that a delegation visiting the site that ITPL was to come up on had agreed to put up the tech park in the location only if the road infrastructure was upgraded to reduce travel time from the Vidhana Soudha to ITPL, to 10 minutes. From then on, there has been a focus to upgrade civic infrastructure in the east – the widening of several key roads, the completion of the Outer Ring Road (ORR) and ongoing wo
Green tribunal asks industries in TG Halli zone to pack up
Dec 26, 2013
BANGALORE: The National Green Tribunal (NGT), Southern Zone, Chennai, has asked over a dozen industrial units to move out machinery and materials from Zone-3 of Thippagondanahalli reservoir catchment area (TGR) within three months. This eco-sensitive zone has a number of granite units.
Bangalore corners 42% of Rs 4,716 crore realty funding
Dec 24, 2013
BANGALORE: The country’s IT capital has attracted the lion’s share of private equity (PE) investments in the real estate sector, approximately 42% of Rs 4,716 crore (roughly $755 million) of the investment that has flowed in between January and September this year.
Office space absorption in Bangalore lower in 2013
Dec 22, 2013
BANGALORE: Bangalore witnessed a large drop in office space absorption of 39 per cent in 2013 as compared with last year. The city office space absorption this year is around 45.76 lakh square feet as against 75.17 lakh square feet last year.

Latest Realty News Of State

Realty Talk's