Mid Segment Housing
Sale to increase in 2014-Bangalore
Bangalore is all set
to see increased sale in housing from mid income group buyers
in 2014. I list following factors for this expected good growth.
1Economic Environment:
CPI and Core
Inflation value predicted to be under control. GDP likely to touch above 6 at
the end of fourth quarter 2014-15 as per world Bank prediction. Over all it is
going to be blend of transition and error correction year 2014-15 for India.
2 Housing Loan:
Housing Financial
Institutions are getting equipped themselves with funds to support mid income
group home buyers for housing loan. Recent arrangement of LIC HFL from overseas
markets through external commercial borrowings (ECB) for $ 300 got approval
from RBI is clear indication for this housing segment.
3 Infrastructure-Bangalore:
20-minute ride between the Kempegowda
International Airport and the Hebbal flyover is on the verge of becoming a
reality. First section of the six-lane measuring 3.7 kms elevated
expressway along the Bellary Road and leading to the airport from Hebbal
flyover to Kogilu Cross, after Yelahanka was made available to public on January
1st 2014. The two other sections of the expressway will be ready and
thrown open to the public in 30 days. There are at least 20 major roads
which are to be completed by April- May 2014. This will help buyers to look for
houses in around theses area which are connected to major real estate corridors
of the city. Road infrastructure development on the peripheral of NICE road has
opened up new Real Estate corridor.
Metro Phase I to be fully ready by March 2015. Commercial operations between
Peenya and Malleswaram would start at any day from now. Phase
I span a length of 42.3 km and consist of 2 lines. M. G. Road to Byapanahalli
in operation. Peenya to Nagasandra, Sampige Road to National College, National
College to RV Road expected to be completed by DEC 2014.
The
State government has decided to go ahead with the construction of a
state-of-the-art peripheral ring road around Bangalore at a cost of Rs. 5,800
crore It would be a six-lane or an eight-lane road and the total length would
be about 65 km.
State government trying its best and serious
efforts to make infrastructure development of the city to fulfill its promises
to Bangalore citizens and as well as keeping in mind coming MP Elections. These
rapid developments would certainly reduce commuting time for Bangaloreans by
40% by the end of this year. Travelling time from dwelling places to work place
or business place which is a major headache for Bangaloreans, likely to be
solved in the next 12 months.
4 Civic agencies
BDA/BMRDA/BIAAPA/BMICAPA have put their norms
and regulations in place. These agencies appear to be clearer about their
responsibilities and their governing laws. This would create more confidence in
buyers especially in mid income group who are looking for transparent buying
process systems.CDP Plan of 2014 give clear picture about zoning areas and
regulations. Metro Politian Committee expected to solve problems of Real estate
community by making technical process and implementation corrections to obey and implement High Court order in 3-4 months.
5 Real
Estate Community:
Above and all entire
Real estate community which includes Government Policy makers, Different Associations,
Builders. Developers, Corporate real Estate houses, Property advisors and Consultants
are evolving towards organized Real Estate sector.
I would like to
conclude saying that Governments, Local Civic agencies, Housing financial
institutions and organized real estate sector will provide a platform of fair
and transparent deal for all buyers especially mid income group buyers in 2014.
Let us also keep watch on inventory of unsold properties of the year 2013-2014. Whether the sale comes from
Information Technology professionals or investors for gain, but 2014 will be
better one for Bangalore Real Estate Market.
Vidyadhar
Naik-Property Consultant-Bangalore
.
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