Can real estate in Bangalore recover?

Bangalore is an Information Technology of great importance. It is without a doubt the undisputed premier Information Technology hub in the country. As such much of the economy of the city depends on this sector. So it would only be fair to say that the real estate industry here is also dependent on the Information Technology sector to bring in a fair chunk of its business.

The realty business here has been going through a slowdown. This is a result of the slowdown witnessed by the entire country. There have not been that many takers for properties across the nation. Multiple factors such as affordability, lack of transparency, accountability and long drawn out delays have been quoted to have hindered the growth of the sector.

So in such a scenario it is not very hard to see why luxury apartments in Bangalore and any other such residential property would be fetch a good price. Another factor that has played havoc with the realty industry is demonetization. The verdict is still out on whether the Indian government’s drive to eradicate the menace of black money from its economy did what it was intended to do. But the one industry that it did have an impact on was real estate.

The real estate business has always had a reputation of not being fully transparent. It is one of the sectors where black money gets routed into. When demonetization became a reality, it was known that there might be some short term losses incurred by the sector. This was seen in Bangalore and many other parts of the country. With there being drastic limits to how much cash a person can have, buying studio apartments in Bangalore was the farthest thought in one’s head.

Besides the fall in the sales of studio apartments in Bangalore, there was another segment which also felt the brunt of demonetization. Luxury apartments in Bangalore took a hit due to this process. For those in the know, this will not come as a surprise. The luxury real estate vertical along with land transactions and resale homes is where most of the black money looms in this business.

Though demonetization has taken a toll on the housing sector now in the long run it is expected to act as a saviour. Everyone involved in this business right from builders to consumers what the sector to grow in a healthy manner. So such policies though they give some trouble initially are welcome because in the long run they are what is needed the most for the sector.

The real estate landscape of the country and that of Bangalore might not be at the ideal point right now. But the real estate sector is a cyclic being. While it is experiencing this low now, it will turn around and see a high soon enough. There are already signs that recovery is around to corner. With government aided policy changes such as RERA and GST coming into play, the realty sector has plenty to look forward to.