Property prices to stay at its peak due to high demand
With the onset of the festive season, a number of doors get open for potential property buyers. According to realtors and bankers, home prices will continue to witness the upward trend this year, regardless of the present market scenario in other metro cities.
Although the prevailing economic factors raises the question as to how appropriate the present condition is for a potential homebuyer, Bangalore continues to witness consistent activity in the real estate sector.
On the basis of the present scenario, comprehending the market movements is a hard nut to crack. Experts advise that it will be a wise decision to analyse such factors that influence the price movement in the long run in the realty sector and decide accordingly.
Bangalore is growing at a fast pace and holds potential to home more number of people, entering the city in search of business opportunities and jobs. On account of its IT/ITes driven economy and a perfect dias for innovative entrepreneurs, a number of residential localities have emerged near the IT belts in Bangalore.
Why Bangalore is an exception?
The key markets in the nation, such as Navi Mumbai, Gurgaon, Noida and Kolkata experience a bleak environment in terms of housing launches. Till July 2013, the number of launches in these key markets have taken a dip by 38 to 59% in comparison to the fiscal year 2012-2013. However, Bangalore has a different story to tell and has been reported to have an increasing number of launches in 2013.
Due to delivery levels, the inventory level has risen significantly across the major cities. Delhi has an inventory of 23 months, while Mumbai has 48 months. In comparison to other cities, Bangalore has an inventory of 25 months, much less than other prime markets. In addition to the good news, around 36669 units were launched in the city before July 2013, which is 31.2 percent higher than last year. Bangalore offers the perfect dias for IT’s and MNCs, and hence enjoys the consistent demand from first time buyers.
Experts View
Inflation in the city has been periodic and has brought with it its different phases. Due to inflation, the RBI had to take a hard stand towards the monetary policy. Regardless of the inflation, Bangalore continues to witness a rise in property prices due to consistent influx of people from different cities.
A price correction during the slowdown does not alter the fact that the demand for residential units in the city will continue to climb up. In addition to it, the prices will also step high on the back of demand.
Property consultants suggest that the festival season is the perfect time for buyer to book for properties and apply for home loans. Festive season calls for a number of schemes and offers that will help a potential buyer to crack a good deal. Furthermore, festive season is the time when projects are launched in galore and prospective buyers are thrown open to a number of options within their range.
