The
following years, all the way till the late 90's were not easy ones for the real estate
sector. And yet the inherent strengths of those who made it through those difficult times
stood the industry in good stead. Fewer projects were launched across both residential and
commercial categories, but these were quality projects with the utmost emphasis on
servicing the client's specific requirement on a proactive basis. For it was very much a
buyer's market and those who accepted the reality of this fact showed healthy returns.
Rates were steady (even to the extent of being stagnant during certain periods), and it
was food for the real estate development sector.
Which brings us to the present, and also shows us a glimpse of what lies ahead in the near
future. There has been a distance revival of rates, which has been looking up across the
board and all categories of projects that have been commenced, completed and delivered.
And yet, for the present trend to sustain, there needs to be that ideal blend of various
factors to synchronise into one harmonious whole. For one should realise that the property
development profession has to from hand in hand with a number of other parameters, if the
hard won gains of the immediate past are to be consolidated.
Prime among these are the oft-repeated ones on infrastructure, of lack of it, and the
perennial power shortage, It is encouraging to see that both these aspects are being
addressed on a priority basis, with the healthy progress of the outer ring road and the
signing of the few power purchase agreements being too small but significant steps in this
direction.
Today, most if not all commercial space in the central business district has been taken
up. The demand will now move towards the suburbs and it will be IT driven. The emphasis
will be to build-to-suit projects with a minimum lead time, and those who are geared up to
service this trend will reap major gains. There has also been an increasing trend among IT
organizations to move to independent, campus type facilities with luxurious landscaping
and minimal ground courage.
The Infosys facility in Electronics City the Golf View Campus on the Wind Tunnel Road and
the WIPRO Corporate Office on Surjapur Road and three of the more visible examples.
On the residential front, present and future demand is being driven by the Rs 12 20
lakhs sector, with a major percentage of this originating from IT professionals. The most
obvious spin-off of the IT revolution and indeed one of the main causes for the revival of
demand for quality housing. Here again, the typical buyer looks at a ready project or one
in advanced stages of completion before committing purchase. There is a marked preference
for spacious two and three bedroom flats in the 1,000 1,200 sft and 1,500 sft to
1,800 sft. Demand is also strong for row houses that combine all the comforts of an
independent house with none of the security hassles, with the advantages of community
living, for which the user is willing to pay an additional cost.
And indeed, there are a lot of incentives, financial and otherwise to encourage a
prospective buyer to commit. Rates are realistic, and quality property across a wide
spectrum of projects is on offer for the fenuine, discerning buyer. Housing loan interest
rates are at their lowest in many years, and housing loan applications are processed
professionally and speedily. Moreover, quite a few developers offer incentivised/special
booking rates for new projects at the launching stage.
So what can the real esate developer do to take advantage of the upbeat market prevalent
today? The key mantras would be professionalize and be proactive.
This would be reflected in studying and understanding the prevailing market trends and
having a clear vision on the future. Projects should be designed and developed around and
client and not vice-versa. Product packaging is also important, for ultimately one is also
marketing and lifestyle and indeed the dreams and aspirations to the end user.
There are but a few of the complex mix of factors that have made the city's real estate
scene what it is today. The immediate as well as medium term outlook appears good, one can
look forward to the future of the real estate market in Bangalore with cautious optimism,
so long as the present encouraging trands are nurtured and maintained.
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