Year 2015 has come to a close and the overall market can be considered as moderate. People who stayed invested will be the winners during this period, for the raise is steady and also the demand has not been fully met.
During the year many initiated developments that have helped the sector look forward to a greater growth had happened. One of the prime movers will be the Metro connectivity across all four lines. During mid 2016 the effort of connectivity will be felt and one should look for opportunity of pick in these sectors. The second phase of connectivity will see extended areas of Metro connectivity picking up.
As regards policy initiatives, the introduction of RERA bill and Land Acquisition bill will mark marked shift in the way the Industry progresses? The members affiliated to the Association have welcomed this move and have already aligned in line with the proposed regulations. The Industry expects fair playing field for all concerned. The acquisition act need to look at more realistically on the market mechanism.
The Industry had placed certain important submission to both State and Central Governments. Rationalizing existing legislations, in order to make ‘ease of doing business’ is on important request by the Industry. Smart City and REITS policies will have positive effect on the Industry.
The Industry expects better fund at manageable cost and also customer getting competitive interest from Banks for their borrowings. The Industry has been seeking simplified but effective ‘Single window clearances’ for the projects for a long time. The time is ripe to implement this long standing demand from us. Faster clearances translate into better cost management which in turn benefits the buyers. If the ‘housing for all by 2022’ has to be achieved, the Industry’s genuine demands need to be addressed.
For a real home user, the areas listed are all good and one should choose accordingly to their work area comfort.
Response from Mr.OmAhuja, CEO, Residential, Brigade Group
In 2015, Bangalore become the best city nationally on following fronts:
In this fiscal, Bengaluru city takes the lead compared all other cities of India on four fronts (1) Best City in terms of Office Leasing – Demand of Office space is the best in India (2) Best City in terms of Residential Sales – Number of Units sales has exceeded compared to Delhi NCR & Mumbai MMR (3) Best City in terms of Job Creation – In the last four years, Bengaluru city has leased over 12-13 mnsqft of office space and thumb rule of every 100 square feet generates one job, over 1.2 mn new jobs are generated every year in the city (4) Best city in terms of Affordability – Cost of living is far more affordable when compared to cities like MMR & NCR. For example, apartment price per square feet is cheaper when compared to Thane (suburb of Mumbai) and Pune city. Bengaluru continues to be the best destination for doing business, attracting talent and above all being cosmopolitan is it biggest advantage.
– Highest commercial leasing – over 13 mnsqft leased
– Top city for Residential Demand – over 60,000 units sold
– Start-up capital of India
– Only affordable metro city of India
The Government of Karnataka has done commendable job in uplifting the standard of living by introducing consumer friendly policies and providing affordable houses to masses. Very few cities in India have the possibility that fresh employed individuals can afford homes within 3 years of starting the career. With consumer friendly policies, Bengaluru provides opportunity to homebuyer opportunity to buy home between Rs.4,000/- to Rs.7,000/- per square feet from A Grade developer within the city limits, which is not possible in any other Metro city of India.
Industry is optimistic that Government of Karnataka will help these cities to grow on following fronts by working on following initiatives:
City Key Challenges Government Initiatives that can boost further growth in the city
Bengaluru – Strengthen Public Transport
– Water Supply
– 24 x 7 Electricity
– Garbage Disposal & City Cleanliness
– Single Window Clearance Metro Phase I full roll early 2016 out will bring lot of relief to the common man in the city . Metro connectivity to Whitefield, Airport & Electronic City will bring considerable relief to common man and reduce number of vehicles in the city and improve the environment and pollution scenario.
Many parts of the city still survive on water tankers. Government can bring in industry friendly policies for initiating PPP projects on creating structured process for water supply from the reservoirs neighbouring the city.
It’s bare minimum that any global city needs to grow. Evaluate the possibility of ensuring the industry/residents are not at inconvenience of bearing further costs for activating generators.
Many steps have been initiated but more capacity addition will help in making the waste convert to electricity and solve multiple problems in the city. Recent imitative of TenderSure is a great initiative by Government and needs to be scaled up further to bring Bangalore right at the top for being the best organized city in India.
Karnataka Government is known for many firsts in terms of polices. Bengaluru can be the first city to introduce single window clearance for Developers to help save costs and improve delivery timelines.
Response from Mr.GautamShetty, Vice President Sales, Vaishnavi Group
• Commercial real estate has done really well this year in the city, with the inventory moving considerably. In fact, there is now a closer gap between demand and supply.
• Rental rates have gone up considerably in the year, with the opening of multiple segments of the Metro.
• With the opening up of FDI, developers have better means to boost their portfolio.
The Bangalore market has been looking up this financial year. As per a report by JLL, Bangalore features among agile higher quality cities such as Warsaw, Shenzen and Colombo among others. What this means is that the city has an attractive business environment, scope for development as well as populations that are generally well educatated.
Though the city may continue to have commutation problems for a little while longer, the population has been able to effectively make use of the several legislations on property taxes and user fees, all in their favour.
Interest in global investment in Bangalore has been on the rise with the city featuring among the top 20 tech-rich cities internationally this year. This has increased the demand for commercial real estate especially in the form of business parks and office spaces.
There were several interesting policy and regulations that came up during the year:
• Several tax benefits and interest rate reductions by the RBI and the Indian Government gave the real estate industry and the potential consumer much needed relief.
• Real Estate (Regulation and Development) Bill (RERD Bill) 2013: If this Bill is implemented, it will ensure that a real estate regulator comes in that will be independent of the government. It will bring much needed regularization into the real estate market. There is immense pressure on the government for this Bill to come into action.
• Housing for All initiative: An initiative by the Prime Minister, NarendraModi that works on multiple levels and has opened out the market to several opportunities.
• The Securities and Exchange Board of India (SEBI) in relation to Real Estate Investment Trusts (REITs) regulations has now introduced a way for foreign investment to come into the country with minimal hassles.
• Smart Cities and Homes also received a boost with the Presidential acceptance of The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
• Changes in FDI rules for the construction sector now ensure that there is a reduction of minimum built-up area and capital investment.
• The Real Estate (Regulation & Development) Bill too is being discussed intensely in the government corridors and there is hope that it will come into play soon.
* Demand for office space and commercial property will remain consistently high through 2016.
* Residential demand will go up in the city in a big way and we may even see the boom of 2007 repeating itself.
* There will be a steady decline in demand and supply of property and this will work really well for a market which has seen more downs than ups recently.
