With a new stable government looking to address some
problems of the previous one, and with interest rates falling, Bangalore’s real
estate market is looking more positive for buyers and investors than it has
been in a while. Given that property
prices here have been relatively stable in the past few years also makes it
quite attractive.
Irfan Razack, chairman and managing director, Prestige
Group, says the mood among investors is positive. “What really matters for
building Brand Bangalore is good governance and good infrastructure. The
ongoing projects should be completed and delivered on time and quality is
likely to be maintained,” he says.
Irshad Ahmed, president, Bangalore Realtors Association –
India (BRAI), echoes the same sentiment. However, he says infrastructure needs
to be improved significantly and the Metro rail work needs to be speeded up.
Builders say Bangalore is also attracting a lot of foreign
buyers on account of the weakening of the Indian rupee. A weaker rupee makes
Indian goods cheaper in terms of foreign currency. “It makes this the ideal
time for foreign investment and Bangalore seems to be the most preferred city
(for foreign buyers),” says Rajashekar, proprietor, Elegant Properties.
Home loan interest rates that had gone up to 11% and higher
are now down to about 10%. Bankers expect the trend to continue given that the
inflation rate is dropping. Interest rates play a big role in real estate
because most buyers take large loans to finance their property purchases.
Zahed Mahmood, director in property brokerage firm Silverline Realty,
notes that schemes such as where the builder bears the customer’s EMI till the
project is complete, is helping to bring buyers into the market.
“Bangalore is more an end-user market rather than
speculative. So it’s helping to keep prices stable,” says Mahmood.
There are concerns about the job market though. IT companies
are no longer creating as many jobs as they once were. But Irshad Ahmed says
this is not an immediate concern.
Realtors are looking forward to the latter half of 2013 when
the Real Estate Regulatory Bill and the Land Acquisition, Rehabilitation and
Resettlement Bill are expected to be passed. “The Real Estate Regulatory Bill,
if passed, will help the growth of India’s realty sector. It will root out all
the unethical and fly-by-night operators and enable a healthy business to
emerge,” says Zahed Mahmood.
Source: The Times of India, Bangalore
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