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April 25, 2014

Real Estate Post

India Post 39

Bangalore No. 1 market for luxury homes BANGALORE: When it comes to luxury homes - units priced above Rs 5 crore - Bangalore is setting benchmarks to emerge as the country's top luxury home market, says a report by JLL India, an international property consultancy firm. Quality of construction, design, ventilation, floor-to- ceiling height, amenities, floor plans, building elevation and configuration aspects are among the factors fuelling Bangalore's rise to the top, the report says. Most importantly, pricing of luxury residential properties in the country's IT capital is seen to be far more reasonable and realistic than Mumbai and NCR, says JLL's report, shared exclusively with TOI. "Luxury properties in Bangalore are 20% to 30% cheaper. While luxury apartments that cost between Rs 6 crore and Rs 30 crore may seem exorbitant, they are in fact very reasonable when compared to the rates going in premium locations of established

cities like Delhi and Mumbai," notes Om Ahuja, CEO-residential services, JLL India. Citing research data, Ahuja adds: "A luxury apartment in Indiranagar or Koramangala is still an attainable reality with

Realty developers banking on post-poll stable govt MUMBAI: The real estate industry, may very well re-enter the market in good which has been going through a rough numbers," Nair said. patch for the last few years, believes that a ASK group managing director Sunil stable government after the ongoing na- Rohokale said, "Investors, both domestic tional elections will revive the investment and global, want to invest in the real estate sentiment, a report said. in the country, but due to lack of clarity on "The real estate sector is holding its policy front and challenges on supply side breath for the potential optimism which is they are deferring their decisions. expected to boost investment sentiments. "The new government will have to deal The next government's economic and em- with increase in governance in asset class ployment policies will be key drivers to and bring in ease of investment and exits. growth in the real estate sector for the next We believe we will have a stable governfive years," Jones Lang LaSalle's Ramesh ment which will address these issues." Nair said in a report. Shriram Properties managing director M "The business community is looking at a Murali said, "We have seen the Ahmedabad stable government with a new Prime Minister and a new Finance Minister. As "The new government will have to deal an industry, we have been with increase in governance in asset bringing to fore the need to address the issue of class and bring in ease of investment housing on a war-footing. and exits. We believe we will have a "The new Prime Minisstable government which will ter and Finance Minister will decide the future and address these issues." we expect positive things to take place in the coming years," Rustomjee development model. It is necessary that such group chairman Boman Irani said. models are replicated in other parts of the counAccording to experts, investment senti- try as well. We believe once we get a stable ment in the realty sector is likely to improve government, the sector will see a boom." post-elections. He, however, maintains that with the The country received less than 1 per cent boom, the sector needs to regulate itself and of total USD 130 billion invested in the real should not wait for any regulatory bill to estate sector in the Asia Pacific region in govern it. "The government will also have 2013. "Fence-sitting investors and home to take steps to ensure effective implemenbuyers will remain spectators during this tation of the various reforms and policies election season. Election results do not formed by the outgoing government," make or break a market, but they are likely Murali said, adding "policies related to land to reinstate confidence and uplift home buy- acquisition, rehabilitation, clearances, real ers' sentiment. Post-elections, if the road to estate regulation bill should be implemented recovery is unhindered, property buyers efficiently".-PTI

prices ranging from Rs 9,000 to Rs 12,000 per square foot. No other premium locations of other major Indian cities offer such prices in the luxury segment." While Bangalore reports sales of close to 100 luxury units - including villas - on a quarterly basis, Mumbai and NCR, in comparison, see only around a dozen such sales. Data shared by the consultancy firm LJ

Hooker shows that Bangalore has around 5,400 luxury units under various stages of construction and planning. After Mumbai and NCR, Bangalore is the third largest market for luxury property sales and product offerings. It is also the third largest real estate investment hub for high net-worth individuals (HNIs), but tops the list in terms of investments from NRIs looking at settling down in India. While much of the city's luxury homes demand is fuelled by millionaires from the IT/ ITeS sectors, the demand is also being driven by Kolkata and Chennai-based HNIs. JLL estimates Bangalore to have over 10,000 dollar millionaires. In terms of product, JLL reported that luxury residential offerings in Mumbai and NCR fall more or less in the vanilla category when compared to products in Bangalore. "In Mumbai and NCR, location aspects such as sea view or PIN code tend to define the flair and profile of a property far more than the positioning of the product in terms of luxury and design parameters," says Ahuja. Demand across all metros for luxury residential products was subdued over three to four financial quarters, but has picked up in the past 60 days, say analysts tracking the real estate sector.


Voice of Indians Worldwide


Voice of Indians Worldwide