Bangalore builders expect to mine profits soon

November 25, 2006	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

With Bangalore realty sector rising by leaps and bounds, it is soon to witness next realty boom. Nearly 1.4 lakh apartment units are under construction and likely to get ready within two years. Of this total unit, the budget segment and mid-segments encompass 30 per cent each and the left out share makes up for the high-end segment.

For the past two years, real estate sector in the garden city has been growing at around 30 percent and is likely to grow at the same pace in the next year as well.

The demand for residential units has been largely driven by an expansion in the IT sectors, says Balakrishna Hegde, president of Karnataka Ownership Apartments Promoters Association (KOAPA) while holding a press conference on ‘Realty 2006’.

Bangalore is witnessing hectic demand for 30-32 million square feet (30,000 apartment units) of residential space annually. And it’s so hectic that the city is all set to leave metros like Mumbai and Delhi behind in the race.

In the past years, most population of the Bangalore used to consider Rs. 15 Lakh as affordable money to get an apartment. Growing economy of the city has modified this figure to Rs. 25 lakh today which shows a great improvement in the financial status of different income groups. The mid-segment has also reached to a stage where Rs 35 lakh to Rs 60 lakh is also deemed as reasonable amount, says Hedge.

However, a continuous rise in property and prices have brought hoard of rogue builders and fly-by-night operators into the real estate sector who focus on employing sharp practices to cash in on this demand. Out of 400 builders, only 100 of them would be there who are governed by its ethics and code of conduct.

News Published Under:   Real Estate India, Bangalore, Real Estate Developers |