The real estate sector has been witnessing a significant lull period since a few years now. There has been a significant dip in the property sales as well as new launches – both housing and commercial. However, 2015 is expected to be a period of stabilization and revival. Campaigns such as ‘Make in India’ have brought the real estate market into the limelight again. Certain potential areas, especially in cities such as Chennai and Bangalore, have already seen a rise in the demand. Some of the properties include luxury villas in Devanahalli, Bangalore, and many residential property projects in Chennai.
- Proportional expansion due to the rise of IT hubs
The new government policies target the expansion of the manufacturing and IT segments; thus ensuring a significant rise in the real estate market in specific areas in the country. In this regard, South India has noticed a good response while North India is yet to pick up. Some of the cities with a rising real estate graph include Bangalore and Chennai. The prime reason for this is the existence of IT-ITES companies in these regions. Both the cities have witnessed a growth in absorption by 1,462 per cent and 512 per cent, respectively till March, 2015. Many high-end residential projects, including the House of Hiranandani, have expanded its market considerably in the southern cities of India. Owing to this positive impact, potential buyers are focusing on purchasing luxury villas in Devanahalli, Bangalore. Thus, the increasing demand for commercial real estate has led to the rise in ROI, from both rent and sale, of the residential property projects in Chennai.
- The expected growth
2015 is expected to see an increasing demand in the services and BFSI sectors. This, in turn, is expected to stir up the commercial sector and housing establishments too. A growth of 15% is expected in office space absorption area by the end of 2015. Companies are expected to focus on cities like Bangalore, Mumbai, Chennai, etc. to expand their market, thus initiating a lot of migration in the mentioned areas. In view of that, an increase in the demand for residential properties is also likely. As a result, buyers are taking an interest in investing in high-end properties such as the super luxury apartments in Bannerghatta, Bangalore.
Moreover, expectations of investors in such residential complexes would revolve around luxurious facilities. Notably, the human resources involved in the IT sector will be responsible for the growth and certainly look forward to comfortable and high-end amenities. As a result, ROI for residential properties is expected to take a sharp rise in such areas. According to experts, the consecutive cuts in interest rates will further give a push to the sale of the residential complexes in various pockets of India.
It is wise to invest in properties such as the luxury villas in Devanahalli, Bangalore from the reputed House of Hiranandani for a luxurious experience. By keeping in view all these positive changes in commercial and housing property markets, the demand for real estate, both rental and on sale, is expected to grow significantly.