Bangalore Real Estate Development Is A Key To Infrastructure Projects

Bangalore is rapidly growing to cater the demand of its burgeoning population

, infrastructure plays a major role in defining its growth track. Union Budget soon coming in month or so, the time remains to be seen whether the allocation for infrastructure will exceed the Rs. 1.73 Lakh crores setting aside last year (2011-12). Year 2011 shows the increased allocation was a gigantic 23.3% over 2010 11 a fair percentage of this supported the real estate sector.

The infrastructure includes construction of roads, emphasis on sustained high growth in the GDP and thrust on housing needs which reflects well for the realty market. In Bangalore the various residential development are having a tremendous impact on the growth of the residential property of Bangalore market.

Over the previous year 2011 one has seen some interesting patterns of growth and improvement in Bangalore. To conquer a sentiment in the second half of the year which may appear to be counter intuitive to the continued growth led by the engineering, infrastructure and health care sectors. The first half of 2011 witnessed the dynamic leasing activity and the second half was more restrained. Highlights that the growing domestic needs for economic push seem to have had an effect.

RESIDENTIAL MARKET:

The macro-economic conditions will keep investor sentiment steady both in terms of foreign direct investment (FDI) and foreign institutional investor (FII) inflows. Inflows of FDI are currently muted because of the slowdown in the country's GDP growth rate which provably remain stable in the short term. As said by analysts, economy continues to show its resilience in 2012 foreign investors will gain confidence and India will become attractive among competing investment destination.

Therefore, the residential property developers will continue to tackle the current liquidity crunch due to high interest rates. As demand improves, sales will benefit developers who will focus on execution of their on-going portfolios. However, the connectivity and infrastructure of residential projects on Bannerghatta Road, Whitefield, Kanakapura Road, Yashwanthpur and Devanahalli will urge in demand for residential property of Bangalore along these localities.

COMMERCIAL SECTOR:

Annual end report of the real estate consultant Wakefield and Cushman records an increase of 8% in the total commercial space absorption over the previous year of 35.5 million sq ft in 2011. there has been a decline of 20% in total supply entering the market in year 2011. Has helped marginally reduce the demand-supply gap in the office market space. Area in Bangalore will see heightened activity in commercial property leasing will be fringes of the Outer Ring Road towards the international airport and along the Metro Rail corridor.

by: lokeshmanu24

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