What Makes Bengaluru Realty Crisis Resistant?

At a time when most other cities are still reeling under the impact of demonetisation, property markets in Bengaluru are seen making a progress. According to a PropTiger DataLabs report for the third quarter (October-December) of the financial year 2016-17, the Karnataka capital, together with Mumbai and Pune, accounted for 60 per cent of the total absorption. The report further showed that new launches in the city increased 15 per cent over the previous quarter, while property prices increased three per cent on an annual basis. Among the developers launched new projects in the city in December were House of Hiranandani, another monthly report by PropTiger DataLabs shows. All this indicates Bengaluru and its real estate are faring well amid a slowdown.

What is behind the growth?

More than anything, the city's brand image is helping it grow.

The image factor

Reports by several think tanks have all good things to say about India's information technology city. Sample this.

Bengaluru was recently listed as the world's most dynamic city leaving behind other major cities of the world.

In a joint report by the Urban Land Institute and PricewaterhouseCoopers (PwC) , Bengaluru was ranked 12th among top global cities for investment prospects and at the 15th position for development prospects.

A leading real estate consultancy company recently listed Bengaluru among the top-20 technology-rich cities globally.

The city's positive image along with the upcoming infrastructural developments have been the reason why Bengaluru real estate did not get severely affected after Prime Minister Narendra Modi declared about 86 per cent of the Indian currency as illegal on November 8.

High absorption rate

Bengaluru is overshadowing cities such as Mumbai and Delhi, with a high absorption rate in both commercial and residential real estate. This could be largely attributed to comparatively affordable real estate in both segments. This has also encouraged developers, including Godrej Properties and Mahindra Lifespaces, to launch new residential enterprises in the city.

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