Bengaluru has undoubtedly emerged as the fastest growing city of India since the past few decades and IT sector has been the primary growth driver and has brought about a sea change in the real estate development in the city. Bengaluru is a cosmopolitan with multicultural demographics with a fairly good physical and social infrastructure. There are various micro-market pockets at the Outer Ring Road (ORR), Whitefield, Sarjapur Road and North Bengaluru.
This growth of Bengaluru can be attributed to a fast increasing number of High Net Worth individuals and movement of NRIs and expatriates. The proposed infrastructure by the government and the development of two more Information Technology Investment Region (ITIR) in Devenahalli and Doddabellapur has increased the prospects of Bengaluru even higher. Furthermore the government proposes to develop the Peripheral Ring Road, Signal free ORR, Mono Rail, Elevated Expressways and high speed rail links. All these taken together the prospects are high in the time to come as opined by the real estate experts.
Statistics say that Bengaluru’s residential market will remain highly active in the near future with 2, 43, 000 dwelling units expected to be constructed till 2018. The city of Bengaluru is a prominent IT and ITeS hub of South India which attracts work force from India and abroad too propelling the massive housing needs.
In a study conducted by a renowned global real estate consultancy the projections for supply indicate that about 56 percent of new residential units may cater to the middle income segment, 29 percent to the low income segment and the remaining 15 percent to the high income group. The estimates say that there is a projected gap of demand and supply of 1, 96, 000 units with a shortfall of 38 percent in the High Income Group.
The experts and the market watchers opine that the focus of Bengaluru real estate was on the MIG segment basically due to the large-scale middle level IT workforce in the city. But the estimates say that as the headquarters of many companies and multinationals are located here in Bengaluru and are on the rise the need for the HIG segment housing has surged up to a significant rate. In future exclusive housing for the CEOs may also catch up in demand as foretold by the market observers.
As per the study conducted by the international real estate consultant, the demand for urban housing in India is expected to be about 13 million units by the end of the 2018 on account of the increasing population in the urban areas. This demand forecast is in addition to the already unmet demand.
Although the estimate says the MIG sector is expected to generate the highest volume of demand of 1.08 million units and the HIG housing sector demand is estimated at 0.52 million units. The demand from LIG and MIG segment will constitute 80 percent of the demand in the eight metro cities of India.
The expected supply of residential units which includes the planned and the under construction units as well is estimated at 1.31 million which is estimated to be supplied to all the eight metro cities by the year end of 2018 with the Delhi-NCR region with estimated highest supply of about 5, 16, 000 units in the coming five years trailed by Bengaluru, with about 2, 43, 000 units and Mumbai with 2, 03, 000 units. The expected supply in the LIG segment will be around 21 percent as estimated in the top eight cities while the demand will constitute 58 percent of the total demand supply gap. The Middle Income Segment accounts for the supply of about 59 percent across the top eight cities while it has a share of 23 percent in the demand supply gap. Cities like Ahmedabad, Bengaluru and Mumbai are expected to have the highest shortfall in the gap of demand supply in the MIG segment.
As far as the LIG segment housing is concerned there are many developers who are building low priced housing and in them Dreamz Infra India Limited’s name needs special mention. Notwithstanding the rising costs of material, labour and land, Dreamz Infra is one of the best Construction Companies providing Flats at affordable prices or in fact low prices. Read the customer’s feedback about Dreamz Infra to know more about Dreamz Infra India Limited.
With all the problems of the real estate sector like rising material costs, land valuation, delayed approvals, outdated building norms, uncertain economic conditions and slow sales volumes, the real estate sector of India will certainly show an upward trend owing to the surge in demand at least in the Urban India. As Bengaluru is on the ride of fast development and change, it will experience a favourable market condition in the recent future. This is at least what the estimates, surveys and the market watchers have to say. The question lies, are we ready to adopt the change.
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