Though the primary aim for developers in Bangalore is to make more affordable homes, the luxury housing sector is on the rise as well. The yearlong slow growth in the luxury and resale market is now followed by rapid growth after the initial influence the economic reforms had. Future homeowners who were once skeptical are now showing more interest. The developers too are eager to bring in new projects to meet the increased demand from the industry.
A realty agent from Bangalore, Aman Agrawal said “Although developers with financial bandwidth sustained the economic turmoil, many postponed their announcement, awaiting the sentiments to improve. However, now when the market has regained stability, a reclamation is expected in the offing. Besides, with government initiatives in the luxury segment, private players are also anticipated to make big announcements.”
Recently after the success of the project in Alur, tenders has been called by the Bangalore Development Authority (BDA) for their latest project at Dasanapur, off the Tumkur Road. The upcoming project is to be 4 BHK high-end villas and will be sold at a forty percent discount than their other projects. Competitive pricing and strategic location will be the main reason for the rise in demand for housing. This project is good for home buyers who are looking to invest Rs 50 lakh and above. Additionally having the project in close proximity of the highways such as NICE road and Tumkur road is another bonus.
Even with the potential homeowners concentrating on high-end properties ranging from Rs 60 and Rs 80 lakh, the resale market has seen its fair share of rise in demand as well. The number of sales has increased after Real Estate (Regulation and Development) Act and Goods and Services Tax (GST). The cause for the shift from the primary market to the secondary market is due to buyers being more interested in the high end projects at relatively lowers prices.
Cash being a major component during the transactions, the industry was shaken during the demonetization and continued to affect the demand and supply in its wake. The situation has now changed though. Both buyers and sellers are gaining from the regulated cash in the community. The buyers get to control the stamp duty burden by showing a lower value at the registration office and sellers get to set off capital gains. The market has got back its equilibrium now that there are no abnormalities in the cash flow.
There has been a 45 percent increase in demand from Bangalore’s premium market as of September 2017 from the time of demonetization. These numbers have improved as micro-markets such as Hoodi, Panathur in the East, JP Nagar and Banashankhari in the south, RMV Extension and Malleshwaram in the North Bangalore have been shown more interest. Lately the Non-Resident Indians (NRIs) or the elite buyer classes are the major customers for the luxury segment.
