5 Major Urban Locations to Enhance Real Estate Development in Bangalore

To get the heat off of Bangalore, the government is developing towns and improving connectivity through expressways on the peripheral of the Bangalore City.  In regard to this, the Karnataka Urban Infrastructure Development Finance Corporation (KIUDFC) under the influence of Bangalore Metropolitan Region Development Authority (BMRDA) has planned to develop a ‘city cluster development project’ comprising an area about 8,005 sq km.

Mr. Suresh Kumar – Minister of Law and Urban Development Department said that BMRDA has intended to construct five satellite townships and expand them as self-reliable cities and the state government has approved the proposal of Bangalore Metropolitan Region Development Authority (BMRDA) in June 2006.

Currently, the proposal in presented before the Centre for approval and Mr. Kumar also explained that the ‘city cluster development project’ is designed majorly keeping 5 towns that include Bidadi in Ramnagara Taluk, which will developed as Knowledge City; Ramnagara will emerge as Healthcare City; Sathanur in Kanakapura Taluk will come-up as Textile/Apparel City; Solur in Magadi Taluk will be developed as Manufacturing City and Nadagudi in Hoskote will emerge as Hardware/Manufacturing City.  Furthermore, to improve the accessibility to these towns, a four-lane expressway will be proposed that will connect the Outer Ring Road (ORR) of Bangalore to these regions.

The minister also added that some of the significant plans under the ‘city cluster development project’ particularly the launch of International Airport in Devanahalli and the completion of peripheral road will definitely aid in the fast development of numerous urban areas such as Doddaballapur, Nelmangala, Malur, Vijayapura, and Hoskote.

The minister in addition stated that the ‘city cluster development project’ has also gauged the scattered absorption and recognized the five corridors for the growth of the real estate in Bangalore.  The five corridors that will improve the BMR development are Bangalore-Whitefield Corridor; Bangalore-Hosur Industrial Development Corridor; Bangalore-Nelamangal-Tumkur Corridor; New Internation Airport Corridor; and Bangalore-Ramanagara-Bidadi Corridor.  In accordance to this, the Asian Development Bank has also recognized the Bangalore-Tumkur-Mysore City Cluster as one of the rapid growing urban regions in India.

For more articles on real estate business sector visit Builders Reviews and Ratings official Blogs Page.

The Time Is Good To Enter Commercial Real Estate

It is believed that the commercial real estate, which is seen as an indicator of economy is currently facing a declining trend. It has also been noticed that the bigger cities are left with a glut of office space which is seen pushing the vacancy rates. The question that props up in the minds of the people is that should investors continue investing in real estate presently.

Well, currently it is believed that commercial markets in majority parts of India have bottomed out. Hence, this is being considered as the good time for high net worth individuals to invest in commercial real estate.

Many people wonder as to why should people considering the slowdown and high vacancy level invest in commercial real estate over residential real estate. It is believed that the annual yield in residential properties is between 2-3.5 percent across the country. Moreover, in commercial today, one can expect returns anywhere between 9-11 percent.

There are some people who wonder if they are in the midst of a buyer’s market and whether investors can get good deals and negotiate. Well the answer to this is yes. It has been seen that today, many tenants are using this as an opportunity to move into either consolidate within one’s premises or cheaper locations also looking at renegotiating with existing landlords.

The 3 do's to invest in commercial property are taking into consideration the capability of the developer, 1) the kind of projects he or she has done before, 2) the kind of quality of finishes, 3) the way he manages his property.Also make sure there are no legal issues and the building is of sound quality.

The top 3 Negative points to be avoided in investing commercial real estate are:

(1)Don't follow a herd mentality.
(2)Keeping a close watch on vacancy is advisable.
(3)It is advisable to not go after the 25th best buildings in that particular micro market which one is looking at.

Bangalore requires 80,000 crores to deal with infrastructural demands

With time, there is growth and for bigger cities, the growth percentage would be more. Development is always a positive thing, yet at times, finance could be a concern. This is what is happening currently with Bangalore, as the authorities are in doubt about generating the requirement of a whopping 80,000 crores in the next five years. The amount is solely for infrastructural developments including road development, drainage works and other works.

It is expected that every city would grow by twenty percent on an average, therefore, in Bangalore, such a growth which is a certainly would lead to a population of 204 lakh. Currently, the IT city is home to about 95 lakhs people.

And, the government can’t go beyond an investment of 20,000 crores. There has been an increase in private investment but certain constraints specifically, those regarding policies deter authorities from spending the money in an effective way.

And, realty is not just the one, there are several sectors requiring urgent investment. It is equally important for authorities to allow funding in these sectors as well. Therefore, generating this much amount solely for realty sector is not an easy task.

This is where the smart city council, an initiative by Dr. A Raveendra, CSD (Center For Sustainable Development) Chairman becomes imperative. The councils were started as an effort to speed up smart city innovation and overall development.

The council has members in the form of corporate leads and leading businessmen in various sectors.

In a nutshell, the government and all related organizations have a tough task ahead in the coming years. 

For more articles visit Properties Reviews Bangalore official website.

CREDAI CONCLAVE Event on 13th – 14th December 2013

CREDAI to arrange a National Conference event called CREDAI CONCLAVE with a topic as ‘Housing the Game Changer - Leading to Double-Digit GDP Growth’ at New Delhi on December 13 and14, 2013.

The event will be attended by many eminent dignitaries like Dr. Girija Vyas - Minister for Housing and Urban Poverty Alleviation, Mr. Akhilesh Yadav - Chief Minister of Uttar Pradesh, Mr. Bhupindir Hooda - Chief Minister of Haryana, Mr. Sukhbir Singh Badal - Deputy Chief Minister of Punjab, Sri Rajnath Singh – President of BJP, Dr Montek Singh Ahluvaila - Deputy Chairman of Planning Commission, veterans from Banking Sector, like Ms Arundhati Bhattachraya – Chairperson of SBI, Ms Naina Lal Kidwai – Head of Indian operations of HSBC, and Mr. Uday Kotak - Executive Vice Chairman & MD of Kotak Mahindra, and some major economists and many others will take part in the event and will discuss subjects, such as ‘Urbanization: Dream of Young India’, ‘Road to Recovery’, ‘Building a Nation - Contribution of Real Estate in National Economic Growth’, ‘The Game Changer’, and provide essential drive for policy change and transformation.   

The broad Agenda of Conclave - 2013 will include the following discussions:

• Government of India and CREDAI dignitaries will inaugurate the session
• Eminent corporate personalities and veteran policy makers will address on ‘Unshackling Growth' in the keynote session.
• Vision and values of progressive India - Policy reforms and Governance
• Creating a platform in Indian real estate market to global investors
• Bridging the great urbanization divides in tier II and tier III Indian cities.

CREDAI objectives - 2015

• Every developer should join CREDAI
• Aid the government to implement changes in policies in tax, land, administrative and fiscal areas to attain more affordable housing and higher GDP
• To set up organization of excellence and research
• To share, learn and create knowledge platforms through conferences

Vision of CREDAI CONCLAVE - 2013

The event aims to organize developers with high degree of reliability, to connect the reliability by gaining respect from every stake-holder, to aid the government to accomplish superfluous housing status, to create ample of urban infrastructure, to contribute considerably to the country’s GDP by facilitating growth in skills.

The CONCLAVE -2013 will thus lay pathway to recognize the great potential, which the realty industry sector contributes for the country in accelerating and reviving the growth of the country, as the economy has declined from a high of 10.5 % in the fourth quarter of Financial Year 2006 to a low of 4.8 % GDP growth in Financial Year 2013.

For more update news on real estate news go through Property Reviews official website.

Increase in Private Equity Investment Brings Relief for Realty Sector

The latest report on Private Equity investments (PE) on India in 2013 by Cushman and Wakefield places Bangalore at the top in view of a declared investment of INR 1,979 crores. This figure indicated a whopping 79 % increase compared to last year largely resulted by huge leased amounts for office space. Behind Bangalore are cities like Pune and Delhi with transaction volumes of around 780 and 612crores respectively.

What has been disappointing is the statistics on Mumbai. The city. Which otherwise attracted a steady investment showed a 43% reduction in the total volume of deals. However, the figure is expected to rise in the immediate future.

The report says that the total value of declared private equity dealings in the realty sector for 2013 (first 3 quarters)stands at INR 4,716 crores, observing an increase of 26%. There has been an increased demand for income-generating office space across India. With the planned implementation of REITs, the Real Estate Investment Trusts, things are set for an organized way of functioning. And there has been an effective utilization of offshore funds and capital funds. With REITs, the sector would get organized further, and investors were convinced of this trend, say experts.

This is really something to look forward to, amid the sluggish phase due to worldwide financial slowdown, inflation rates, lack of supply, discrepancies in project completion and less sales.

Roughly 65% of the total investment in 2013happened during the3rd quarter at INR 3,078 crores.  And, the total worth of funds in the office sector was estimated at INR 2,476 crores in the first three quarters in 2013, almost double than the previous years. Consumer interest in leased office structures were on the upward scale.

The housing segment also witnessed investment, yet, there was not any significant growth. However, launches in the first three quarters of 2013 seemed to increase by 5%. Nevertheless, the data is not impressive regarding sale of individual housing units.

Other related sectors like retail and hospitality have not been a great contributor. The cited reasons include less demand and inventory accumulation, altogether creating a dull situation.

For more articles on real estate business go to blog page of Real estate builders Reviews and Rating official website.

Boom Time for 1 BHK Flats in Bangalore

Are you in search of a property in Bangalore? Are your investment plans hindered by lack of funds?  Do you feel confused about going for a hefty loan? Then, a 1 BHK will be an option worth considering. 

Bangalore is witnessing an increased demand for 1 Bedroom flats from people of different categories. There are various such projects coming up across the city and even outskirts in different size and price ranges.

Bangalore is among the rapidly developing metro cities in India. With the advent of numerous software giants, the economic scenario has undergone a total transformation. The Silicon Valley is also blossoming as a hub for basic as well as professional education. And, high level immigration has been another causing factor behind boom in realty sector.

1 BHK is ideal for students, young couples, small families or working professionals. And, moreover they come at a lesser price and those in two minds about spending a huge amount can go for them.

In the preceding years, such apartments were centered around in emergent places such as Mathikere or, Madivala. However, the last few months saw leading developers coming up with such projects in various places in and around the city.

The luxury apartments in this category are also quite popular. More builders, realizing this trend has launched projects of 1 BHK. Examples include Pashmina, Prestige, Fortune etc.

One BHK homes located adjacent to premier educational organizations, attractions, key areas, transportation are obviously much in demand.

Sometime back, majority of takers for 1 BHK used to be people belonging to low-income group. Not any more, say experts. Many of the current buyers are looking for a viable second-investment as 1 BHKs offer steady rental income. Many are trying to reduce the loan amount by opting for 1 BHKs and the saved amount could go to other forms of investment. And, the changes in lifestyle look at small space as the ideal option.

For more articles on real estate business go through the blog page of Property Ratings and Reviews official website.