The Big Bangalore Boom

I recently got an interesting Did you know mail from my aunt in the U.S. about Bangalores astonishing International fame, it said

"Bangalored" is a verb which recently got added in the dictionary. Most certainly it's an ah ah moment! A person is said to be Bangalored if he lost his job because the work got outsourced to Bangalore or any other city in India. Yes indeed, Bangalore is now the envy of the world, first identified in the world map and now in the dictionary. Isnt it a wonderful transformation of our home town

Asia's fastest growing city, houses hundreds of multinational companies and a huge number of Fortune 500 companies and these reputed companies attract more and more companies to Bangalore thus creating an enormous demand for corporate space. Real Estate Research firm Lang LaSalles states that 32 per cent of the total demand for office space in all the metros in India is accredited to Bangalore.

The huge demand is largely due to the I.T. Companies, the backbone of the Economic Development in Bangalore, which are estimated to have acquired a total space of 20-million sq. ft land between 2003 and 2006. With the escalation of commercial ventures in the city, there is an increase in the requirement of residential, hospitality and health care facilities. Eateries and entertainment zones have also become essential. Thus major projects that are now taken up include malls, hotels, resorts, hospitals, educational institutions, housing developments, service apartments and so forth.

This manner of overall development has attracted, to the city not just IT professionals from various states but also several budding and reputed builders from within and out of the city. Developers like Prestige, Brigade, RMZ, Salarpuria, Mantri, Adarsh, Sobha, Puravankara and the like have rapidly changed the face of the city. From cool new malls to sizzling new pubs Bangalore seems to be getting it all, and at a rapid pace.

This kind of speed in development has only been possible because of the legitimate requirement for this quickness of growth by the end users. No sooner is an office building reaching the final stage of construction there are a group of buyers and renters interested in it. Even apartments cant seem to be put up fast enough as purchasers seem to require.

Gone are the days when super luxury apartments or villas of one or two crore rupees were few and far between, today they enjoy a more constant demand and supply. Housing developments have now enormously expanded their scope, encompassing more and more luxury apartments, villas and townships. As per a recent report, prices of residential property in prime areas increased 50% or more in 2004-2005. Nevertheless the increase in demand for such properties is unfaltering.

Banks and other financial institutions have played a key role in facilitating with this

progression by making loans easier to acquire to all segments of people and charging reasonable rates of interest. There are enormous efforts being made by the government to allot land at a swift rate to IT firms and other industries for the purpose of technology parks and integrated townships. Various private developers have also added their bit into the land pool which hopefully should help regulate these rising prices and help fulfill the growing need for land and building in the city.

Indias flexible FDI rules have created a more encouraging atmosphere for overseas patrons to invest with more ease and safety in both private and business ventures which has helped Bangalore gain more investments in real estate. Statistics declare that Investment in India yields huge dividends. 70 percent of foreign investors in India are making profits and another 12 percent are breaking even truth being as such Foreign investors also seem to be rushing to get a piece of the action in this case a piece of real estate. Foreign construction and housing groups have also joined the various collections of Indians taking up projects in Bangalore.

Vancouver-based Royal Indian Raj International Corporation (RIRIC) is said to be investing an overwhelming amount of US$ 2.9 billion in a single real-estate project named Royal Garden City in Bangalore. Morgan Stanley Real Estate has also said to have announced an investment of approximately US$ 68 million in Mantri Developers Private Ltd, a Bangalore real estate developer.

Bangalore is experiencing a real estate boom, no doubt about it, but will it last When questioned experts will give you varied opinions declaring that this is just the beginning or pronouncing that over saturation is already setting in. Off late the banks seem to be getting more careful while giving loans to commercial ventures though their housing loan policies are still relaxed. The fear that the boom has caused an excess of construction in the city, a situation which could crush the economy on the loss of high profile companies from Bangalore is always present at the back of the mind. The true result of this situation perhaps, only time will tell.

As of now Bangalore real estate is a good option to invest in to reap premier rewards. Risk, as in any investment is also present but the effect can be minimized by taking certain precautions. While investing in commercial property opt for areas more towards the centre of the city or in the I.T. belt. Stick to investment safe areas like Sadashivnagar or Indranagar while purchasing residential accommodations instead of investing in the up and coming areas in the outskirts of the city. Residential sites got directly from the Bangalore Development Authority and Karnataka Housing Board is a sure bet for a huge profit on investment.

Despite the supposed risk, Bangalore real estate would definitely be my choice for investment in real estate. Having watched the city develop from what it was, to what it is now, an ever growing city with novel super malls springing up ever so often, gigantic I.T. parks, extravagant housing developments, high-quality infrastructure and the most important the talented human resources who demonstrate a harmonious coexistence of diverse customs and cultures all combined with the Government support in the cool climate of the cosmopolitan city there is no doubt in my mind that this is the Big Bangalore Boom and it is not going to end, at least not anytime in the near future