Real estate in metropolitan India, has been an investment and continues to be. It’s always been a relatively safe bet to put your money into Brick And Mortar and given the huge population of our country, it’s all very liquid — there is inevitably supply and demand.
Let’s look at Bengaluru specifically. It has been the fastest-growing city of India. IT has been the major growth driver and is responsible for aggressive real estate development in the city. Bengaluru has social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure.
All this, along with the factors mentioned below are contributing to the capital appreciation and rental potential in our city:
- Growth in the IT Industry and a rapidly increasing number of High Net-Worth Individuals, and movement of expatriates.
- The proposed infrastructure by the Government (Peripheral Ring Road, Metro Rail, Signal Free ORR, High Speed Rail Link, Mono Rail, Elevated Expressway).
- The proposed SEZ and IT parks in North Bangalore. (ITIR in Devanhalli, Aerospace SEZ, Devanhalli Business Park, Airport city)
The first quarter of 2015, two significant market movements have been observed in Bengaluru’s real estate market — an increase in new launches as well as a rise in the net absorption of units. While 13,400 units were newly launched in the first quarter of 2015, the corresponding figure stood at 11,170 units in 2014.
Bengaluru also saw a net absorption rate of 8,310 units in the first quarter of 2015 compared to 7,210 units observed in the corresponding quarter of 2014, which is an increase of 15% in total sales year-on-year. This is huge and many factors have led to this year on year increment in sales. Consumer perceptions, expectations and behaviours have changed in the recent times and the realty industry has to address this change in order to sustain and grow.
Internet And Information
Very simply, if you asked yourself where you “discovered” a new property the answer is probably google maps; online. You may have driven past something and then wanted to learn more — chances are you aren’t going to stop outside and walk inside but are going to google it the next time you’re in a traffic jam. It is important to maintain a strong online presence on multiple platforms so you don’t miss an opportunity or an audience. A website is the first place people look when they are looking for the builders portfolio. In addition to that it Is important to maintain a social media presence to generate leads, build brand awareness and drive website traffic by targeting ads.
Traffic
Traffic is a genuine problem in Bangalore with ever increasing commute times. It’s not easy to pop across to have a quick look anymore and almost all your travel needs meticulous planning. Hence, the growing trends of “realty exhibitions” — a place where potential buyers come where vendors all display their property. This allows an end consumer to stake out a whole range of different options very quickly and effectively comparing it all.
Educated Consumers
People know what they want. Reality providers need to cater to this by giving consumers a lot more information than ever before. The consumer is truly sold on a project when the price point meets liveability and convenience. This ranges from amenities provided in the building itself, such as parks, recreation and activities centres, play areas for kids and ease of access for seniors and the handicapped to other factors such as supermarkets and daily shopping, parking and security. External factors like healthcare facilities, proximity to the CBD, connectivity to the metro and other public transport and educational institutions are also scrutinised in the buying decision.
Growing Middle Class
The growing IT sector means more people in Bangalore are in a position to invest in a home. Capitalising on the first home buyer segment has been the game changer for Bangalore’s real estate market.
The sensibilities of the Middle-class come with a higher level of expectation that go beyond the purchase itself. Here, instilling a sense of goodwill by providing after sales services and maintenance is necessary to grow the brand and leverage word of mouth marketing.
Our hypothesis is that these five external factors have contributed heavily in the way real estate is being sold and companies are investing in technology to help them; even if they overriding notion being felt is that land sells itself.
