The information technology capital of the country is set to see annual investments exceeding Rs 12,000 crore during the next few years in real estate. The funds will go into constructing 50,000 dwelling units a year.

This is against the 1.5 lakh flats and apartments which are currently under construction involving an investment of Rs 45,000 crore. According to Mr Balakrishna Hegde, president, Karnataka Ownership Apartment Promoters Association, Bangalore remains the prime attraction for real estate following the impressive strides being witnessed in the country and the city in particular.

He told newsmen on the eve of the Koapa Reality Expo slated for 8 and 9 December here, that out of the $50 odd billion foreign investment that was waiting to come into the real estate sector in the country, as much as 30 per cent would be accounted for by Bangalore alone.

Dismissing reports of a dip in the real estate sector, he said between 1996 and 2007, it had seen a growth of 20 per cent. Judging by the way new companies were being set up in the city, accompanied by the over one lakh jobs that were expected to be generated here, the prospects could not be better.

Already, he said the city had over five lakh people in high income generating jobs in over 1,900 Indian and foreign companies representing a host of sectors including IT, BT, real estate, research and development.
All these people had huge disposable incomes which they were spending on purchasing real estate in addition to consumables and related products.

Similarly, he added, Bangalore with its unique position continued to be an attractive market. For example, flats in central areas of the city which cost anywhere between Rs 4,000 and Rs 5,000 per sq ft in September 1995 were available today for Rs 6,000 sq ft or so. Also, the rates in the city were still not high when compared to Mumbai and Pune.
He said the real estate market in the country in general and Bangalore in particular, was on the rise. It had seen some stabilisation in the last seven to eight months with the market maturing significantly. This coupled with the higher interest shown by the NRIs and reduction in home loan rates, was leading to a positive sentiment.

Overall, the real estate sector in the country was set to create nine million jobs in the next five years of which a substantial percentage would be in Bangalore.

In addition Karnataka’s government agencies, on their part, were set to build several satellite towns. Accordingly, investment in the city would continue to flow into the city.

This explained KOAPA’s efforts to cash in on the opportunity by organising a two-day exclusive reality show in which about 47 well known developers would participate with the idea of attracting buyers from within and outside India. Source: thestatesman

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