Bangalore is identified as the epicenter of the niche IT sector of the country. It has its own flavour in the real estate industry. The end-users dominate the Bangalore real estate market and the control of investors is way too less. Thus, the property price spectrum remains narrow.
Bangalore, despite being a forerunner across quite a few aspects of life as well as industry, lacks public transport infrastructure. However, that leaves great scope for infrastructure development which can boost Bangalore Real Estate.
Let us have a look at the post covid development in the Bangalore real estate market across residential, commercial, and infrastructure domains.
Most industries experienced a slowdown in the current pandemic era but Bangalore real estate showed a prominent rise in the growth graph. The first quarter of 2021 marked growth in new projects and Whitefield claimed 40% of the same.
In Q1 2021, 75% of overall sales were claimed by Whitefield, Hosur Road, and Bellary Road. Also, the quarter witnessed, a 1% increase in average prices and an increase of 26% in launches compared to Q4 2020. There has been a drop of 7% in the unsold inventory of Q1 2020 compared to Q1 2021 from 62,800 units to 58,350 respectively as per data from ANAROCK.
The factors like reduced loan interest rates, developers’ offers, and reduced registration contributed to the consistent growth in sales in affordable housing. On the other hand, NRIs boosted the high-end segment sales. Despite the marginal increase in prices, few developers continued with flexi-time payment, free parking, consistent floor-wise pricing, and complimentary interior design services.
The Government of Maharashtra had announced a reduction in stamp duty rates for all the property segments. However, the Karnataka Government announced the same only for the properties valued between ₹ 35 to ₹ 45 lakhs which limited the growth to some extent.
As mentioned in the introduction, Bangalore has a great scope to develop the city infrastructure. A limited infrastructure invites severe traffic congestion, more cars, and a rise in pollution. So, it has a cascading effect.
Developed infrastructure plays a good role in the overall real estate growth. Currently, there has been some movement in Bangalore’s real estate infrastructure. South Bangalore has an ongoing metro project connecting Silk Board Junction through Bellandur, Koramangala, HSR Layout, and Electronic City. Metro links are getting established in areas like Whitefield, Industrial Zone, City Centre, and International Airport.
Kanakpura Road in central Bangalore, Whitefield in the east, and International Airport in the North will be connected through the upcoming Peripheral Ring Road (PRR). Other road infrastructure like underpasses and flyovers will be developed near the Whitefield-Bellandur area that will ease the travel in this belt and subsequently help in the residential sales.
The offers and incentives from the developers and the reduction in loan interest rates make it a combo offer for property purchases. However, home buyers with insufficient savings need down payment financial assistance. HomeCapital has a solution in the form of Home Down Payment Assistance Program. It offers up to 50% of the down payment amount free of interest to be paid in 12 EMIs. This program is offered for the benefit of home buyers by partnering with the leading residential developers across India.
This is the best time for property purchase in Bangalore for a new home, especially in the mid-segment and with the upcoming infrastructure the possibility of prices soaring is high.