Prestige Park Grove

Prestige Somerville Prestige Kings County Birla Advaya Godrej Bengal Lamps Godrej Woodscape

Why invest now in Bangalore real estate after the pandemic?

There were many changes to the real estate industry during the pandemic like stalled construction, dropping demand, movement of laborers, financial insecurity, and many more. Along with all these, the buyers' sentiments decreased, too. There was a lot of fear surrounding rampant job loss. In that scenario, one can expect real estate agents to stop investing in the new projects, and instead start looking to dump the old stocks of unsold property they currently have.

The realtors would either reduce their prices by offering more discounts or keep them stable in response to this acute liquidity stress. This is what common sense says, but the reality is very different, as seen in all major cities in India, and Bangalore is no exception. With a remarkable surge in the sales of apartments, flats, and housing units, the real estate market has staged a comeback after the pandemic. Even though the number of apartments for sale has not increased, seven of the top ten property markets in the country have registered positive sales. Several factors contributed to this, including record-low interest rates, additional discounts offered by builders and developers, and a reduction in stamp duty in key markets.

The analysts felt that in Q1 2021, the major demand boosters were the bank rates being reduced by 6.7%, along with the stamp duty rate cut which qualitatively increased the perception of affordability, surging sentiments of buyers. At 8670 apartments, Bangalore was the only city that did not register a decrease in apartment sales compared to the previous year. Despite the buoyant market forces, there are quite a few new launches in India's top seven cities, as well as a few in Bangalore.

It is projected that if the current incentives stay in place, 2021's real estate market will be vibrant due to end users who will be the primary demand for apartments, condos and homes. Since Bangalore is largely driven by end users, the impact will be much stronger in Bangalore and this will boost demand for properties in the city, causing it to remain an attractive option for buyers in the years ahead. To make matters worse, Bangalore saw the second-highest reduction of its unsold inventory, hovering around 7%.

An obvious reason for Bangalore's remarkable recovery is the severe real estate situation at the time of the pandemic, and the extremely low buyer sentiments. The question is what made the situation change so dramatically in Bangalore's real estate sector. There were several factors which contributed to this. First, the government's measures like the reduced repo rate and the reverse repo rate helped end users obtain loans, and the cash reserve ratio also helped builders with credit facilities. In addition to providing extra liquidity to the real estate sector, these actions improved buyers' sentiments and increased their affordability.

In Bangalore, as well, there was price correction, and builders offered additional discounts with the extra liquidity, say real estate experts. The lower interest rate has already increased affordability in the hands of buyers with stable financial conditions. As a result of the price decreases and the discounted offers, the first quarter of 2021 saw a surge in sales. Other words, Bangalore real estate developers have no choice but to find ways to clear their stock, even at lower prices, and buyers have a lot of choices with greater affordability.

Bangalore's real estate market is currently a buyers' market, which is beneficial to buyers. Since it is not predictable how long the market will remain a buyers' market, the prudent thing to do is to buy now before the market changes into a sellers' market. That will surely happen in Bangalore faster than anywhere else. More info visit Prestige Park Grove

Contact Us

Contact Out Agent

Site Address

Bengaluru, Karnataka


Office Address