While the Indian real estate market slumped during the COVID-19 pandemic, the scenario in Bengaluru was entirely different. The property demand in the city of lakes was such a demand that according to a report from ASSOCHAM, Bangalore had the lowest delay in delivering flats, standing at just 31 months on average. Let’s look at the characteristics that make Bengaluru a top real estate destination.
A Market Driven by End Users
Due to the constant influx of migrants working in the IT and other corporate sectors, Bangalore real estate has always had to price the offerings according to the end-users and their capabilities. Since the city and its neighbouring localities are not investor driven, the scope of speculative pricing is exceptionally minimal.
While infrastructural development in other metro cities leads to a hypothetical rise in the price of real estate, Bengaluru remains largely unaffected. It is also why the buyer’s sentiments have always been high in Bangalore.
Ethical Market
The conditions of the Bangalore real estate market had primarily been ethical even before the introduction and enactment of RERA. Previously, the construction quality was already high above other tier 1 cities. With RERA coming into the picture, the buyers felt an added sense of security in the Bengaluru real estate market. It also had the lowest delay in delivering real estate projects throughout the real estate development history of the nation.
IT-Driven Market
Most consumers of the Bengaluru home market are people working in the IT and ITeS sectors. The growth of these two sectors has been the reason for an unprecedented influx of global IT giants in the city, which resulted in the flourishing of the city’s commercial real estate. Besides property purchase, the rental market, the co-working and co-living segments of the industry have also seen a rise due to the development and advancement of the ITeS and IT sectors.
Joint Development
The real estate market of Bengaluru is one of the most efficient, with high dependence on joint development, where the developer and land owner share the proceeds of all the stages of development. In contrast to how other cities develop properties after purchasing a piece of land, ultimately becoming expensive and leading to added costs in the pricing that the buyer often bears. This practice of joint development makes the real estate of Bangalore highly stable.
Credit Driven Market
Most of the land or property buyers of Bangalore real estate are people who make their purchases with credits and home loans. As the real estate market of Bengaluru runs mostly on loans and credits from national institutions, it was not impacted by the demonetisation drive and the pandemic. The notion of approval from all leading nationalised banks means the due diligence of the property has been done, and it is litigation free.
These characteristics of the Bengaluru real estate market make it highly compelling. And it is incredibly cost-effective regardless of whether you are looking for a 1, 2 or 3 BHK flat in Bangalore. The Promont by Tata Housing is a beautiful gated community if you are looking for a 4 BHK flat in Bangalore.
