Bangalore has consistently been one of the strongest real estate markets among Indian cities in the recent past. The future of real estate in Bangalore looks equally promising.
The real estate market in Bangalore is more resilient than those of other cities due to the growth of the commercial sector, fuelled primarily by the IT-ITeS industry; improved job opportunities; rising volume of sales; and numerous infrastructural improvements in 2018. Reforms such as RERA and GST have further helped streamline the sector, and the future of real estate in Bangalore, especially in 2019, is likely to carry forward the growth trend.
Experts also credit the thriving start-up ecosystem across the city and the robust social infrastructure, as manifested in the presence of world-class educations institutions and healthcare facilities, as key contributors to the growth trend expected in the future of real estate in Bangalore.
Demand and Supply trends
A survey by Roof and Floor revealed that 870 projects were launched in 2018, of which about half the supply catered to the mid-segment (Rs. 40-70 lakh). The affordable segment (less than Rs. 40 lakh) accounted for 24% of the supply while 26% of the supply was for the luxury segment (Rs. 70 lakh and above).
Experts expect these supply trends to carry over in the future. Properties in the mid and affordable segments are expected to see more supply and demand in the coming year as well, especially with the government striving to deliver on its housing-for-all promise.
Bangalore performed better than all Indian cities when it came to shedding unsold inventory. A recent report by ANAROCK Property Consultants revealed that the city witnessed a significant drop in total unsold stock – one of the highest among metro cities.
In the future of real estate in Bangalore, the healthy nature of commerce in the city combined with realistic property prices dictated by the end-user, is likely to keep housing sales in the city relatively upbeat despite all macroeconomic headwinds.
The government has clear intentions of doing away with bottlenecks in the real estate sector, as is evident through the introduction of reformative measures such as the GST, IBC and RERA. Karnataka is one of the states that has actively worked on notifying RERA rules. For instance, earlier this year, Karnataka made it mandatory for developers to update the progress of their projects on a quarterly basis. With a supportive government attitude, the future of real estate in Bangalore has a conducive climate to flourish in.
Predictions for 2019
Residential real estate is estimated to witness an upsurge of at least 20% in 2019, according to a study. 2019 is expected to be the year of South and East Bangalore. Sarjapur-Attibele Road, Whitefield Extension, and Kanakpura Road with their affordable property rates are some of the localities to watch out for in 2019. The upcoming metro line is also expected to boost the real estate in areas it will bring connectivity to.