Bangalore A Haven for Real Estate Investment

By: Karshni on 23:52

The real estate industry in India is undergoing a phase of transition. The year 2013 saw a steady market for real estate in major Indian cities. In Bangalore, the residential market has been pretty stable as compared to its neighboring cities. It is expected that in 2014 the real estate market will gain momentum and get back on track. However, the development of the industry is largely dependent on the macroeconomic condition of the country.

A Silver Lining: 

In-spite of the sluggish economy, there is rising economic prosperity among the masses which has increased the available purchasing power. Mid-range residential properties have been a popular property choice among people. Bangalore's real estate market caters to large consumers who are local buyers, working professionals who have migrated from other cities and also NRI clients. Bangalore in particular, has a large clientele from across the globe which is the reason why real estate market is still flourishing. Contemporary consumers have provided the opportunity to realty developers and builders to expand their product base. As a result, various new projects are being launched ranging from mid-range apartments to high-end luxury villas and integrated townships.

Sliding Rupee Value: A Boon in Disguise:

Like several other industries, the real estate industry has been affected by global slowdown and sliding rupee value. Inspite of the challenging economic condition, the real estate sector in India has performed comparatively well. While, there was a slowdown in demand for properties by local buyers, superior dollar value has encouraged NRI clients to buy properties in India. Bangalore being one of the most favored destinations among Indians living abroad, the sluggish rupee value has in turn attracted NRI clients to invest in Bangalore, thereby, salvaging Bangalore's real estate market to a great extent.

However, the recent announcement by Reserve Bank of India to hike repo rates by 25 bps (basis points) has been a constant debate. It is anticipated that such a move will push banks to increase the loan rates, which in turn will have a visible impact on home buyers.

Growth of Bangalore as a Real Estate Market: 

Bangalore is a haven for real estate market. Over the years, real estate industry in Bangalore has witnessed massive growth due to improved infrastructure, better civic facilities, better road developments and better rail networks among others. Due to better connectivity and infrastructure, realty development is able to expand its borders to areas out of city limits which have great potential of becoming future hot spots. The improving socio-economic condition has encouraged the populous mid-income earning families to invest on real estate sectors. As a result of FDI will see many international players entering the Indian real estate market and a surplus demand is anticipated in commercial and retail segments.

Regions in Bangalore foreseeing Growth: 

The city is seeing rapid developmental activities in all the four directions. East Bangalore is becoming fairly popular among realty developers and potential home buyers due to better road connectivity which has as come a result of ORR linking to major IT corridors and other places of interests. Areas such as Whitefield, Marathahalli, Kundalahalli,

K R Puram, Kasturi Nagar, ITPL and Mahadevpura are some of the favorite residential destinations.

West Bangalore, covered by residential localities, is witnessing major developments

in the form of commercial and retail complexes and high-end residential projects.Some of the areas which have come to focus due to recent developments are Yeshwantpur, Malleswaram, Rajajinagar, Matthikere and Vijayanagar.

North Bangalore has been a popular residential destination both for end-users and investors. Developmental activities in these areas have been phenomenal. The region provides easy connectivity to major areas in the city which is one of the main reasons driving the demand in areas like Hebbal, Yelahanka, Ramamurthy Nagar, RT Nagar, Banaswadi, Hormavu and Sahakar Nagar.

South Bangalore is fast emerging to be a favorite region for real estate development. The entry of multi-national companies has boosted developmental activities in this region. Further, the development of NICE Road and Metro Rail connectivity to the region have increased the value for properties in localities like HSR Layout, Sarjapur Road, Electronic City, Bannerghatta Road, JP Nagar, BTM Layout, and Uttarahalli.

Road Blocks to Overcome: 

The future of real estate industry in Bangalore looks promising but it is also filled with obstacles and challenges. Some of the challenges can be controlled, while others need intervention from higher authorities. For instance, the recent move by Reserve Bank of India to hike repo rates by 25bps will definitely pinch the realty developers across the country. This step will push financial institutions to increase loan rates which in turn will affect the demand for residential properties.

Another common problem faced by realty developers is delay in regulatory approvals which is often a big hurdle in launching projects. In a country driven by sentiments, political order plays a vital role in defining and governing acts and regulatory bills which needs stability. The new 'Land Acquisition Act' will concern realty builders and developers in India and it may result in subsequent changes in real estate prices and increased costs in project development with lower profit margin.

http://www.siliconindia.com/realestate/news/Bangalore-A-Haven-for-Real-Estate-Investment-nid-163004.html

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Fancy things your real estate agent may tell you

By: Karshni on 05:38

BankBazaar.com

When investing in a real estate property, a real estate agent might prove to be a really valuable asset. However, if you don't keep your eyes and ears open, you might end up ruining your investment.

Ankit is a regular investor in the real estate industry and has been buying properties for some time now. Things weren't always good for him as he once fell for some fancy claims made by a real estate agent and ended up losing a huge sum of money. However, he now knows that even though there are several statements that the brokers make regarding the property they are offering, it is you who needs to be alert and attentive when investing your money.

When you are out for buying real estate property, you should always remember that agents are here for business. The enthusiasm of buying a plush new apartment can get you stalled between tall claims and misleading promises. So, the next time your broker tells you that he has a cozy apartment up his sleeve, you need to be alert that he might just be talking about a cramped one. The industry cliches can change the entire definition of a clean and high class apartment.

Be ready to hear the following things from your real estate agent if you are planning to invest in one of the posh localities of the city.

You Got the SeaView!

Having an apartment with a sea view is a dream of every investor. However, not every agent can do that for you, though they surely can promise you of getting one. The estate agents these days are quick to mention that a particular apartment comes with an ocean view. The thing that they don't tell you is that there are certain obstructions. So, when you pay all the money all you get is an ocean view which is obscured by huge buildings and trees. This is quite common in coastal areas like Chennai and Mumbai.

A Huge Garage that can Hold 2 Cars at a Time

Let's admit it that we all want to have a huge car garage that can hold at least 2 cars at a time. Now, this is what the agents promise you, but the truth is that such garages have storage regions or dryers installed in them and so the space is not enough for two sedans or even hatchbacks for that matter.

You'll Get a Superior Price when You Sell the Property

Whenever we invest our money in a property, our agents claim that they'll help us get a better price for the property in the near future. However, you shouldn't fall for the statement as this is something which is not in the hands of the agent. The market behaviour cannot be predicted accurately and hence, you should invest your money after knowing your requirements well. So, don't believe your broker when he says that he'll help you sell the property at an unrealistic rate.

This is the Best Locality

This is a common lie that you might hear from your agent. To put it simply, you cannot just rate a locality to be the best in an area. There are a number of factors to be considered while determining a property's value, but according to the agent the property they are offering is the best. They will tell you a lot about how the area around the property will develop in no time.

The Place is a Paradise for Investors

Your agent will probably tell you that this place is a paradise for investors and a huge investment house is coming up to build a multiplex and shopping mall. You shouldn't pay much attention to these claims as the market changes quickly and nobody knows what's going to happen in a short span of time.

Not Much Time or Units Left

They'll tell you that there is not much time left as they only have the last few units to sell. You should never hurry while investing in a property; instead you should stay calm and see why the agent is pushing so much on selling the property. Even if they offer you the flat at the most economical rates, you should not fall for the trap and instead take a sound decision.

With the increased rates of property, brokers tend to charge a huge sum from their clients as a commission. So, if you are already giving them their share, then there's no need for you to take a risk with your investment by believing everything they say.

BankBazaar.com is an online loan marketplace.

http://profit.ndtv.com/news/your-money/article-fancy-things-your-real-estate-agent-may-tell-you-382408

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