The unprecedented occurrence of the pandemic in the past year has brought a new realisation to people, especially in the Indian Subcontinent: the value of owning your own home. The sudden increase in customer awareness has caused a significant shift in the real estate market, especially in Bangalore.
Launch of new projects
Bangalore has the lowest real estate inventory overhang among the country’s top seven cities, allowing for the development of new projects. If the sales trend from the third quarter of 2020 is taken into account, Bangalore is poised for a sales rebound, which may also aid the real estate industry’s recovery from the early months of 2020. The addition of new ventures is set to be a blessing for the industry in this situation, as more and more people are searching for a permanent home.
The Karnataka Stamps Bill
The Karnataka government made the timely decision to reduce stamp duty rates from 5% to 2% for properties costing up to Rs 20 lakh, and from 5% to 3% for properties costing between Rs 21 lakh and Rs 35 lakh, just as the pandemic was peaking. This cut was made to increase the number of property registrations and help homebuyers during the pandemic. According to an article published in The Hindu, “The move brought about a positive sentiment for properties with stagnant prices and unsold inventories.”
Improvisation and Innovation
The pandemic has posed several challenges to companies, pushing them to find new ways to stay afloat. As a result, the real estate sector has had to undergo several changes. Since being on site was not a choice, many builders launched a virtual tour of their properties. This trend is expected to continue into 2021, as more and more people prefer virtual and interactive tours to site visits.
Upcoming Localities
People prefer protection and safety in the presence of their family members, so Bangalore has seen an increase in reverse migration. The demand for plotted projects and luxury villas offering greener space will rise in the outskirts and suburbs, as social distancing has become a lifestyle. Bangalore, which is known for its traffic, has seen a change in demand when it comes to location, as people are now searching for homes that are located in quiet areas rather than homes that are closer to work. The new trend in 2021 points to the inclination of buyers towards areas like Whitefield, Thanissandra and Hennur Road. Keep a lookout for these areas as new projects are being developed there at a rapid speed.
Preferred Property Types
In 2021, home buyers continue to prefer affordable,mid-segment properties which are ideally ready to move in. The greatest traction has been observed in 2.5 & 3 BHK homes, with a minimum of 1800 sq. ft. area within the range of 1 Cr. This trend is likely to continue well into 2021 since independent townships and low-density developments are also attracting the attention of property seekers in Bangalore.
Conclusively, because of the high demand, real estate in Bangalore is expected to flourish in 2021. Despite the unpredictability of the past year, Bangalore’s real estate market has only seen a 5% drop in price as compared to other markets, and as we begin to regain a sense of normalcy, the real estate market in Bangalore is also expected to recover.
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