Saturday, March 29, 2008

Changing skyline makes property a good buy

Changing skyline makes property a good buy
Bangalore is changing. An international airport, metro rail system, and many civic infrastructure projects are on the anvil. This is a good time to buy property in this commercial hub, says B S Manu Rao

An international airport in the making. A metro rail system being built. Another ring road on the anvil. All the characteristics of a city set to turn a corner. Bangalore is being reinvented. This time, it will be a more efficient model, and a prominent spot on the world map.
Bangalore is a dynamic city. It has been attracting a large number of people looking for career and business opportunities. The IT sector that has taken firm root in the city has fuelled an entirely new economy. It has changed the face of this city and is adding a new dimension every year.
In Bangalore, every major infrastructure project has scripted a new story. The Outer Ring Road brought new premium localities to the city. Inaccessible locations suddenly became soughtafter residential and commercial hubs. The city's far-flung layouts came close to the city centre. And suddenly, there were more options for both residents and those looking for a commercial base.
The new comprehensive development plan for the city - Master Plan 2015 - promises to add another dimension to Bangalore. Vertical growth and commercial development in residential locations is a new feature to the city. High density development along the metro rail route will mean availability of more spaces in areas that have been saturated for long. It also means further development of built spaces, and consequently higher yields from existing commercial complexes.
The commercial development in residential areas - on roads of specified dimension - will make living more convenient. The convenience shopping that it will create will make it unnecessary to commute long distances for simply daily needs. This, in turn, will lessen the pressure on the roads and lead to easier traffic conditions to some extent.
Such developments have been changing the dynamics of this IT city regularly. The salubrious climate, availability of skilled man power, and a cosmopolitan culture have been drawing people from all over the country. This has created a potential market for the service industry and retail in a large way. To cater to this burgeoning demand, chain stores, hotels and shopping malls have set shop all over the city and in peripheral locations. These too have added another facet to the changing dynamics of Bangalore. Property, the first need In a fast-growing economy the first need is property. For both the residents coming in to the city and entrepreneurs looking at tapping the potential market, property is a basic need. So, both residential spaces and commercial complexes will ride pretty on the back of this demand. This apart, the need for property as businesses expand operations will be felt. The next generation expansions in the IT sector are due now, according to industry watchers, and some more campus development can be expected. All this has fed a thriving property market in the city.
Climate good for buyers
Bangalore has been a good location for any property buyer. The city has recorded healthy capital gains on the one hand and seen considerable demand for rentals on the other. The large number of people coming into town has fuelled a market for rental accommodation. Most oranisations in the city rent a few residential properties to accommodate their executives. This apart, the many executive taking up jobs here settle down in rented accommodations before planning a house of their own.
Another factor that does good for the rental market in the city is the large number of foreigners who come here on short-term assignments. This is specially so in the IT sector. Large independent houses and high-end apartments find demand from this segment of travelers.
Every locality in the city has proven to be good for capital returns on residential property. In many localities, property prices have more than doubled in the recent past. The reason is simple, the demand far outstrips supply. Also, the civic infrastructure projects are making locations more convenient, creating more demand from those looking for a residential option.
With the sort of influx into the city, more commercial and shopping destinations are emerging. The IT-driven affluence is fuelling demand for property here.
Investment angle
This city is a fertile ground for investors. Property has always been a safe and secure investment option. With the limited availability of space, it is never going to lose in the demandsupply equation dynamics over the long run. The commercial story of the city has always been one of high growth. The demand for property here too will follow the same trend. Investors looking for rental returns or capital gains will find property in Bangalore a good option.


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