BANGALORE: According to the World Bank’s Global Economics Prospects report released in January, global growth is expected to witness an uptrend, from 2.40 percent last year to 3.20 percent this year and 3.40 percent in 2015. While the report estimates the Indian economy could grow at 6.20 percent in 2014-15, the Asian Development Bank is also positive with a 5.50 percent projection for the new fiscal. With the US indices looking better, the Indian economy is also expected to pick up gradually this year. This will translate to higher disposable income and purchasing power.
In such a scenario, planning to buy a property is the best bet, especially in a market like Bangalore where there is a range of product offerings to suit every budget. Shrinivas Rao, CEO – Asia Pacific, Vestian Global Workplace Solutions, points out, “Healthy commerce and infrastructure development is sure to boost the residential property market in Bangalore. The city witnessed the launch of nearly 40,000 units in 2013 and saw absorption of nearly 35,000 residential units. This year, the city is slated to witness the launch of 38,000-42,000 units and absorption is anticipated to be in the range of 32,000-35,000 units.”
With the start of the new financial year, the demand for residential options is set to go up. Enquiries have started picking up with increments and bonuses expected this month and with tax planning to be done for the fiscal. Zahed Mahmood, Director, Silverline Realty, feels that with the stock markets up, good offerings in the market, competitive pricing and assorted schemes, prospective buyers should look at buying homes from April to June-July. “Many developers are offering better deals to buyers now. Banks are providing tailor-made schemes such as the one where the interest can be paid on the completion of the project. There is also the tax benefit available on home loans”, he says.
Alexander Moore, Chief Executive Officer – India, LJ Hooker, adds, “As a buyer, the best time to get in is now as you can strike a good deal as, after the elections, prices are almost certain to rise.”
Options and locations in demand
According to Moore, “While the enquiry level is just starting to pick up, the most immediate requirement is for homes in the south-east and north segments, with a reasonable demand in the Central Business District (CBD). The maximum sales volume in the second half of 2013 was concentrated in the Rs 30-60 lakhs bracket (budget segment). According to our research report, the Rs 30-60 lakhs segment contributed maximum supply in the Bangalore market with 32 percent, followed by the Rs 1- 3 crores (premium segment) with 24 percent.”
Many residential options are coming up in the vicinity of business centres such as Whitefield and Electronics City, and also Bangalore north, driven by healthy demand for homes in localities here. Zahed points out, “Whitefield has become a major destination for homeowners with good social infrastructure, a wide variety of residential options for every segment, beginning from Rs 20 lakhs and going up to Rs 6 crores. Hennur Road and Thanisandra Road are developing well. With the Metro line and the NICE Corridor, Electronics City and Kanakapura Road are also witnessing many enquiries. Many people are also looking at second and third homes. As for budgets, by and large, volumes are happening in the Rs 50 lakhs to Rs 1.50 crores price bracket.”
Moore adds, “The Bangalore real estate market is mostly end-user driven. We are finding a lot of demand for first homes in the city limits (within the Outer Ring Road). In the outskirts, investments in the affordable segment are strong.”