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Bangalore is an end user’s market: Bijay Agarwal

No Comments Sub Category:Builder Speak Posted On: Oct 15, 2013

Founded in 1986, the Salarpuria Sattva Group has grown into one of the most trusted builders in the country today. It has a formidable presence in Bangalore, where it is headquartered , it is a well-known name in Kolkata, Pune, Jaipur, Vizag, Hyderabad and Chennai. The Group has plans to venture into more cities in the near future.

With 15 million sq.ft spaces completed and 30 million more in stages of development and planning, the Group is one of the premium builders of India today. The Group’s unwavering adherence to quality has given it the “trusted” tag among builders in the country. The group has also won prestigious awards including-The CNBC- AWAAZ- CRISIL- CREDAI Real Estate Awards for the best commercial and residential projects in India.

Behind all this is Mr Bijay Agarwal, the Managing Director and a man of vision, who has carried the Salarpuria Sattva brand to great heights over the last three decades. He is a creative thinker and an astute businessman whose vision for the real estate and development sector goes beyond commercial gains to a genuine contribution to the “Building of a new India. A commitment to sustainable development”.

Current real estate developments and its impact

Mr Bijay Agarwal speaks about his outlook on the Bangalore real estate market and put forth some insightful information about the real estate industry in an exclusive interview with CommonFloor.com.

(1)  What is your outlook on the Bangalore real estate market? From 3 – 5 years down the lane, how do you see the Bangalore real estate market?

The real estate market in Bangalore is very positive. Bangalore is a stable consumer’s market and the demand for housing is increasing. Your investment in 3-5 years will get a cumulative return of 18-20%.

(2)  What will be the impact of the following developments on the real estate market of Bangalore?

(i) Recent increase in repo rates (RBI Rates)

There will be no significant change as the increase is only 0.25 % , this will settle down quickly provided there is no more immediate increase. If there is a further increase it can effect consumer sentiment and effect the realty market.

(ii) Advice to banks for not providing loans under the innovative schemes such as “80:20″ or “75:25″.

This is a good move by the bank because some players have the tendency to divert the funds meant for projects, thus losing their focus and delaying the project. Only a few builders do this. This move by the market will build customer confidence and help the industry stay healthy.

(iii) New land acquisition bill

If the state policy has clarity then this is a positive move. Builders must have clearer guidelines. We are still awaiting the state policy.

(iv) Real Estate Regulatory bill, 2013

While the bill is welcome there are some procedural issues that have to be addressed by the government. Issues like deadline of the various Government departments to give clearances ( NOCs). Also, some issues have to be addressed within the builder community regarding the bill by the national bodies like CREDAI.

Clarity on built up area / carpet area will bring in more transparency and boost customer confidence.

For organized players this is very welcome. We are awaiting the final outcome of the bill.

(3)  With the economic slowdown and other recent developments, do you believe the property prices in Bangalore will decrease -Yes or No? Why ?

Bangalore has all it takes to attract people to buy property here.Bangalore is the job hub, IT hub, medical hub, education hub of India. Most importantly, it is cosmopolitan and has the best weather. Not only are people coming from all over India, even people migrating from across the world first explore Bangalore as an option.Large corporations and the IT industry have a huge presence here and the job availability and growth is high here.

The property prices in Bangalore are presently just right and growing steadily. It will only keep rising because there is a continuous demand for housing in Bangalore as also sensible pricing compared to other metros in the country.

The SalarpuriaSattva brand caters to the bracket between Rs 50 lakhs to Rs 1.5 crore and we see a steady and healthy demand from this section of consumers. We don’t foresee any slowdown.

(4)  Which are the good localities in Bangalore to fetch handsome returns and why? What are your upcoming projects?

7 KMS from within the heart of the Central Business District ( CBD) is a good buy. Areas that are connected to the amenities of the city and with access to the new infrastructure developing like metro and elevated flyovers as well as good connectivity to the airport and established development of Bangalore.

Hosur main road, Old Madras Road, Sarjapur road, Hennur road, Tumkur road, Hebbal (North Bangalore) will get very good returns and have very good potential.

We have 6 projects in advanced stages of development and 4 new projects launched last month. Greenage is on Hosur Road, Luxuria is in 8th Main Malleshwaram with good connectivity to the elevated flyover and International Airport, Magnificia is on OMR Road adjacent to the Byapanahalli Metro Terminus, Gold Summit is on Hennur Main Road, enroute to Bangalore International Airport Limited (BIAL) (tallest building with 32 floors ), Senorita is opposite the WIPRO Corporate Office on Sarjapur Road, and Melody is on Mysore Road.

Our new projects are Aspire on Hennur Main Road, Celesta on OMR Road overlooking the Krishnarajpuram Lake, Clarinet on Bannerghatta Road. We have also launched Phase II of Greenage and Senorita.

(5)  Bangalore is an end user’s paradise. Please provide us three compelling factors as to why even investors should invest in Bangalore.

1). ROI is high and assured in Bangalore.
2). The growth is going to continue -It is the hub for Jobs/Education/Health/IT
3). The weather and cosmopolitan culture will draw more and more people. Any slowdown is not going to effect this market.

(6) How do you see CRISIL ratings helping the users in taking an informed decision?

CRISIL ratings give an indication of the financial stability and capability of the builder to deliver projects. CRISIL ratings build consumer’s confidence as well as bankers confidence. This is important because they are able to identify the reliable builders.

(7) Can you please provide some investment tips to our users in Bangalore?

Now is the time to invest in Bangalore, because prices are stable. It is better than any other metro in India. The scenario will not remain like this for long because there has already been a 40% increase in construction cost, while property has only seen a rise of 10-15%. So this gap is going to be soon filled. The scenario has to change and prices have to catch up.

My advice is buy now before prices go up. It is never going down in Bangalore.

Looking to buy an apartment? Explore Salarpuria Sattva’s Ongoing projects!!!

This interview is conducted by CommonFloor.com, for any further queries mail it to aditi@commonfloor.com.


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