Drop in prices give a boost to Bangalore residential market
The new government with a clear majority and interest rates dropping seem to have given a boost to the Bangalore residential market. In the last couple of weeks the market has witnessed a surge in bookings, especially in the mid-segment market. What is interesting is that this surge is being driven by mid-level businessmen.
In May alone bookings have been done for about 22 residential apartments in the Rs 60-80 lakh segment. And about 60 per cent of this has been bought by businessmen. About a couple of months back however, though this segment showed interest, they were putting off the buy state. Drop in interest rate and the hope of several pending contracts being approved with the establishment of the new government.
Given that property prices here have been relatively stable in the past few years, makes Bangalore attractive for this segment. With the IT segment not willing to open its purse strings as they used to do previously, it is this mid-segment of businessmen who are now driving the market.
It is not that the Bangalore market is no more IT driven, but in the short term, the small and mid-segment businessmen from the manufacturing segment and other businessmen with a turnover e
of approximately Rs 15 crore annually, are currently opening up their purse strings. The expectation that ongoing projects should be completed and delivered on time has given an impetus to this segment.
Realtors expect the Bangalore market to grow further. In fact developers predict an impressive growth in the latter half of 2013.
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