The Metro Rail is a new landmark. It is as significant a factor as IT is for the economy of the city. The boom in many spaces is attributed to a significant push from the IT sector. In the months ahead, the Metro too will be a major contributor. To use a phrase much-bandied-about these days, the Metro will be a game-changer. A sector that will benefit hugely from the Metro is real estate.
There is much happening in Bangalore on the infrastructure front. The elevated roads over Hosur Road and Tumkur Road added a new dimension to the localities around. The elevated road over Bellary Road promises the same in north Bangalore too. Just as the Outer Ring Road pushed the pace of real estate development in the city earlier, these infrastructure projects, especially the Metro, promise another significant thrust.
If the global economy and its impact on domestic markets was the question prospective homebuyers had, infrastructure and its impact on realty is the answer. There is no other factor that has such a decisive impact on the property market. This is more so in the case of Bangalore with the large number of people moving in year after year. The need for housing is ever increasing.
The Metro, and other connectivity projects, promise to create a potential environment for economic activity. This will lead to more jobs, and therefore career-seekers from other locations moving in. It will lead to entrepreneurs coming into the city to tap its vast potential. A basic requirement for any economic activity is a suitable space. The many options available in both residential and commercial spaces are geared to meet the anticipated demand.
Increasingly, the domestic economy is bucking the global trend in some spheres. The strong consumer base here is fuelling demand. The huge shortfall of homes in urban locations will keep demand buoyant. Also, the phenomenon of rapid urbanisation will mean more demand for homes. Housing will always be in demand here.
There are indications that home loan interest rates are at their peak levels. From here on, they will most-likely move downwards. The inflation rate dropping will also lead to a drop in the home loan interest rates. In the meanwhile, costs of construction are going up. In such a scenario, a prospective homebuyer will do well to make his move early.
Even as the Metro demonstrates its effect on connectivity in the Reach I corridor, the impact will be felt across the network. The convenience of speed and comfort will make many destinations virtually ‘heart of the city’, commanding a premium value. Likewise, property options in the localities connected better thanks to the elevated roads and widened Hosur Road will command higher prices.Infrastructure, not global economic developments or market sentiments, is driving the city’s property market.
Source: Times Property in The Times of India, Bangalore
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