Burgeoning Real Estate Boom in Bangalore

December 7, 2007	(Be the first to rate this story!)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

The IT capital of the country is taking huge leaps in real estate investment. Bangalore is expected to exceed Rs 12,000 crore during the next few years in real estate. The funds will go into constructing 50,000 dwelling units a year.

This is against the 1.5 lakh flats and apartments which are currently under construction involving an investment of Rs 45,000 crore. According to Mr Balakrishna Hegde, president, Karnataka Ownership Apartment Promoters Association, Bangalore remains the prime attraction for real estate following the impressive strides being witnessed in the country and the city in particular.

Mr. Hegde told newsmen that out of the $50 odd billion foreign investment that was waiting to come into the real estate sector in the country, around 30 per cent would be accounted by Bangalore alone.

He also said that between 1996 and 2007Bangalore had seen a growth of 20 per cent in Real Estate Investment. Judging by the way new companies were being set up in the city, accompanied by the over one lakh jobs that were expected to be generated here, the prospects could not be better.

Bangalore with its unique position continued to be an attractive market. For example, flats in central areas of the city which cost anywhere between Rs 4,000 and Rs 5,000 per sq ft in September 1995 were available today for Rs 6,000 sq ft or so. Also, the rates in the city are cheaper as compared to Mumbai and Pune.

He said the real estate market in the country in general and Bangalore in particular, was on the rise. It had seen some stabilisation in the last seven to eight months with the market maturing significantly. This coupled with the higher interest shown by the NRIs and reduction in home loan rates, was leading to a positive sentiment.

Overall, the real estate sector in the country was set to create nine million jobs in the next five years of which a substantial percentage would be in Bangalore. In addition Karnataka’s government agencies, on their part, were set to build several satellite towns. Accordingly, investment in the city would continue to flow into the city.

News Published Under:   Real Estate India |

Comments