PROPERTY MARKET IN BANGALORE
It is the common view that the real estate market in Bangalore presently is not on a very strong footing since a large number of residential flats and commercial places are lying unsold for a quite some time now.
Properties are developed not only by the reputed property developers, but also by not so reputed developers and by the entrants to the real estate industry. The development activities are mainly concentrated on the north and south of Bangalore in view of the existence of establishments of I.T/B.T. Sector as well as the fast track progress of infrastructural work in these areas with the hope that their end products could be sold at much ease to NRIs and the people connected with IT/BT sector.
In view of the recession in the past couple of years, most of the flats constructed have remained unsold and it is difficult to know the number of flats unsold and lying vacant since there is no agency to compile the statistics about the real estate industry.
Housing needs being one of the basic necessities, keeping in mind their financial capacity, many people have restricted their requirement to one bed room (1 BHK) flats instead of 2 BHK or 3 BHK flats though one bed room accommodation may not fully meet their requirements. Considering the demand for 1 BHK flats many developers have started concentrating on the construction of 1 BHK flats to meet the requirements of a large number of people. The rise in property prices could be result of the sudden spurt in property prices on account of boom in the real estate industry during the early years of the decade.
The situation in the beginning of the present decade was quite favorable for the real estate industry. However from the year 2007 the market started showing downward trend and the sale of developed flats and the commercial spaces was affected. Experts in the real estate market feel that the current year may be brighter for the industry in view of the growing demand for residential as well as commercial spaces.
Though some people say that the real estate market is showing improvement, nothing spectacular is seen nor is it likely to be seen immediately in view of the continued recession. In view of the rising prices of all the essential commodities it is difficult for the people to think of buying properties or commit for buying properties now.
The present situation seems to be dim, looking to the market condition, particularly of the essential commodities. People are not interested to commit themselves to invest in projects to be taken up or those which are under construction, by the developers. The reasons for this attitude of the people are plenty. The main reason is that the projects generally do get delayed or prolonged inordinately, and the developers do not adhere to their promised time schedules for completion of their projects while they insist on payment of installments according to the agreements.
If there is no progress in the work as promised by the developers the buyer cannot be expected to continue to pay the installments as per agreements. Both the buyers and the developers do not believe each other and the result is that the projects are not completed and also in some cases, the parties go to courts for resolving their disputes leading to further delays in completion of the projects. Only when the developer and the buyer resolve their misunderstanding, if any developed disbelieving each other, things may move in a congenial atmosphere.
Source : Bangalore Property