If you are planning to invest now, then Bengaluru can be a good option. Currently, the real estate prices are stable and expectation is that next year the prices will be higher for property buyers. Consumer sentiments are improving and this is a good time to invest in the Bengaluru market. These were some of the findings of Real Estate Dialogues (RED) conducted by Magicbricks in Bangalore where experts from the industry were brought together under one roof to discuss the market realty in the city.
Market sentiments
The industry is of the opinion that there is a demand-supply gap in the Bengaluru market. But this will ease out soon as developers are receiving new enquiries these days. “The market is getting better and we are getting enquiries currently. The competition is growing significantly in the market. There is a need for the authorities, developers and media to build positive sentiment for the Bengaluru market,” said Pratik K Mehta, MD, Unishire Group, one of the panellists.
Most recently, reasons impacting the Bengaluru real estate market were lack of job creation because of the changing market trends, lack of government approvals and delay in policy implementation. The panellists also discussed about implementation of the Real Estate Regulatory Agency (RERA) Bill to clean up the sector soon. The Bill will regulate the hitherto largely unregulated housing sector in India.
The panelists at the event were Srinivasan Gopalan, CEO, Ozone Group; Om Ahuja, CEO – Residential, Brigade Enterprises Ltd; Pratik K Mehta, MD, Unishire Group; SS Asokan, ED, Shriram Properties; Raghuvinder Singh Pathania, Mantri Developers; Professor Venkatesh Panchapagesan, Head, Century Real Estate Research Initiative, IIM – Bangalore; Somy Thomas, MD, Valuation & Advisory Services, Cushman & Wakefield and Satish Ramchandani, Director, CRISIL Real Estate Ratings.
SS Asokan, executive director, Shriram Properties said, “There is good demand from end users for homes in the budget range of Rs 50-70 lakh in Bengaluru. Low sales were due to delay in getting approvals. It has pushed up costs by 15-20 per cent in a year.”
“There are no signs of price correction but there is piling up of huge inventories. But consumer sentiments are positive in the real estate market. The RERA Bill can bring discipline and take care of the funds issue of the developers. Moreover, affordable housing in the city is possible only when the government is ready with city plans,” said Somy Thomas, MD, Valuation & Advisory Services, Cushman & Wakefield.
Srinivasan Gopalan, CEO, Ozone Group, said, “The consumers should change their perception about us. The developers will try to bring trust and transparency in the market.”
Infrastructure development
The panelist felt that there is a need for infrastructure planning to give a boost to the real estate market of Bangalore.
"The government should work with the industry to bring transparency in to the system. The approvals and clearances from the government departments should be fast tracked. There should be no red tapism. This will further build confidence in the market and help in boosting the real estate sector. If the government is ready with the infrastructure then it will help to develop more satellite towns in Bengaluru. There are different types of demand from consumers and we should be ready for that as a developer,” added Asokan.
"The government should work with the industry to bring transparency in to the system. The approvals and clearances from the government departments should be fast tracked. There should be no red tapism. This will further build confidence in the market and help in boosting the real estate sector. If the government is ready with the infrastructure then it will help to develop more satellite towns in Bengaluru. There are different types of demand from consumers and we should be ready for that as a developer,” added Asokan.
Source - ET
