REAL ESTATE BOOM IN BANGALORE
Bangalore is a city growing by leaps and bounds in India. After the rise of companies like Infosys, Wipro, HCL and others, the real estate has seen an upward trend. According to the experts there are approx 2,43,000 units of houses which will be supplied in the next five or six years (untill 2020). The city is a monument of great IT companies and attracts workforce from far and near. As per the study conducted by the global real estate consultancy Cushman and Wakefield (C & W) , the supply of the houses will go to the companies like the MIG, HIG and the LIG. Residential housing is always on a upward trend and approx 6 lakhs units with 50% in the MIG (Middle Income Groups) and 31% in the Low Income Groups are coming up. According to the high requirements in the city, the demand is always going to challenge the supply. The gap between the demand and the supply will be more than 2 lakhs.
Bangalore has remained focused on the people who are from the middle income groups, due to the large scale influx of mid level and low level IT professionals arriving in the city. The need for the luxury homes is going to rise significantly in the comming years and the people like VP, AVP, CEO, CFO and others will be targetted. The demand for the urban housing in India has risen to approx 25 million units by the end of year 2020. Top eight cities in India is going to have more than 50% share of the units.
The revenue generation will be due to the rise of MIG followed by the rise of LIG (Low Income Groups) and they are expected to generate huge returns to the real estate companies. The existing supply of residential units including the existing is estimated to be approx 1.45 million which is also expected to be delivered across eight cities in India. The bulk of the units has already been sold to the prospective buyers. The MIG (Middle Income Groups) will play a vital role in the total supply of houses to the top eight cities in India like Delhi, Mumbai, Kolkata, Chennai, Noida, Hyderabad, Bangalore, Kochi and others.
According to Sanjay Dutt, Executive and Managing Director, South Asia, Cushman and Wakefield, The private sector housing which is largely responsible for creation of housing in India, has been suffering with various issues such as rising input costs, expensive land acquisitions, land valuations, outdated building norms, restricted access to the funding, unwanted delays in registration process, improper regulatory procedures, uncertain economic conditions, recession in industries resulting in poor or low turnovers has always been a challenge for the real estate segment in India. Hence demand and supply have been completely affected in India on a large scale.