Real Estate Guide

Today, Bangalore is truly an 'International City', with prefixes such as Silicon Valley, most preferred destination etc. being common place. A far cry from the tranquil days of the late seventies when terms such as Garden City and Pensioner's Paradise came to mind when one spoke of this metropolis. And yet it is precisely within the parameters of these few 'keywords' that one can trace the unprecedented growth of trace the unprecedented growth of the past 15 years leading to the present, and which would in turn give an indication of the direction in which Bangalore is headed.

The unprecedented boom of the early 1980's saw the real estate market turn topsy-turvy. Prices went through the rood. Projects started mushrooming all over the place, the skyline of Bangalore changed permanently. Fortunes were made overnight. Suddenly, property development and real estate became the field to be in, a glamour profession.

But such a vertical growth oriented market cycle could not be sustained indefinitely, being intrinsically unsould in nature. And as anyone in the profession will vouch, any structurally unsould edifice will come crashing down on itself. And so it proved, with a drastic reversal in the late 80's. The glut of project launches slowed to a trickle, a lot of opportunistic operators in the profession went out of business and prices came down. And yet the turmoil proved to have a silverlining after all. For the 'weeding out' of the players out to make a quick buck meant that only the committed, truly professional organizations, the ones who were in the market on a long term bases, were left.


This in turn has a positive impact on all aspects of projects both residential and commercial. Suddenly, the ideal package that comprised the optimum mix of pricing, quality and timely completion assumed paramount importance. The hitherto sellers' market had indeed come full cycle. The following years, all the way till the late 90's were not easy ones for the real estate sector. And yet the inherent strengths of those who made it through those difficult times stood the industry in good stead. Fewer projects were launched across both residential and commercial categories, but these were quality projects with the utmost emphasis on servicing the client's specific requirement on a proactive basis. For it was very much a buyer's market and those who accepted the reality of this fact showed healthy returns. Rates were steady (even to the extent of being stagnant during certain periods), and it was food for the real estate development sector.Which brings us to the present, and also shows us a glimpse of what lies ahead in the near future.

There has been a distance revival of rates, which has been looking up across the board and all categories of projects that have been commenced, completed and delivered. And yet, for the present trend to sustain, there needs to be that ideal blend of various factors to synchronise into one harmonious whole. For one should realise that the property development profession has to from hand in hand with a number of other parameters, if the hard won gains of the immediate past are to be consolidated. Prime among these are the oft-repeated ones on infrastructure, of lack of it, and the perennial power shortage, It is encouraging to see that both these aspects are being addressed on a priority basis, with the healthy progress of the outer ring road and the signing of the few power purchase agreements being too small but significant steps in this direction.

Today, most if not all commercial space in the central business district has been taken up. The demand will now move towards the suburbs and it will be IT driven. The emphasis will be to build-to-suit projects with a minimum lead time, and those who are geared up to service this trend will reap major gains. There has also been an increasing trend among IT organizations to move to independent, campus type facilities with luxurious landscaping and minimal ground courage. The Infosys facility in Electronics City the Golf View Campus on the Wind Tunnel Road and the WIPRO Corporate Office on Surjapur Road and three of the more visible examples. On the residential front, present and future demand is being driven by the Rs 12 20 lakhs sector, with a major percentage of this originating from IT professionals.

The most obvious spin-off of the IT revolution and indeed one of the main causes for the revival of demand for quality housing. Here again, the typical buyer looks at a ready project or one in advanced stages of completion before committing purchase. There is a marked preference for spacious two and three bedroom flats in the 1,000 1,200 sft and 1,500 sft to 1,800 sft. Demand is also strong for row houses that combine all the comforts of an independent house with none of the security hassles, with the advantages of community living, for which the user is willing to pay an additional cost. And indeed, there are a lot of incentives, financial and otherwise to encourage a prospective buyer to commit. Rates are realistic, and quality property across a wide spectrum of projects is on offer for the fenuine, discerning buyer.

Housing loan interest rates are at their lowest in many years, and housing loan applications are processed professionally and speedily. Moreover, quite a few developers offer incentivised/special booking rates for new projects at the launching stage. So what can the real esate developer do to take advantage of the upbeat market prevalent today? The key mantras would be professionalize and be proactive. This would be reflected in studying and understanding the prevailing market trends and having a clear vision on the future.

Projects should be designed and developed around and client and not vice-versa. Product packaging is also important, for ultimately one is also marketing and lifestyle and indeed the dreams and aspirations to the end user. There are but a few of the complex mix of factors that have made the city's real estate scene what it is today. The immediate as well as medium term outlook appears good, one can look forward to the future of the real estate market in Bangalore with cautious optimism, so long as the present encouraging trands are nurtured and maintained.