After realtors struck gold in 2011, realty intelligence firms predict that next two years would record dramatic rise in demand, but this time from NRIs
Realty intelligence firms across the globe are taking note of th city's realty success story, since 2011 proved to be fruitful for realtors, as demand and success almost hit equilibrium.
Several such firms predict that the next two years would record another dramatic rise in demand - this time by NRIs.
The city's IT capital status has resulted in Bangalore housing a sizeable NRI population and foreign companies are pushing for expansion in the city.
Global Real Estate Solutions firm Cushman and Wakefield concluded, based on an extensive survey, that 'Bangalore has become a clear preference for NRI investment in real estate.'
The survey conducted by the research wing of the firm brought out certain statistics that will delight realtors, who planned properties years ago with NRIs as their target audience.
"Bangalore has progressed as the prime preference for many sectors like office and retail. The real estate industry will see the highest demand for office space between 2009 and 2013, which may cross 34 million square feet," was the conclusion arrived at in the survey.
Realtor's prediction "Sceptics doubted our plan to focus our business towards the South Eastern part of Bangalore initially. This was our reaction to the IT boom in the early part of this decade and it has proved fruitful.
Demand is rising and we are close to delivering," said a prominent realtor from the city. Meanwhile, other realtors, who put their trust in the growth of the IT sector and began operations in North Bangalore are going to be enjoying the benefits of this predicted growth.
"We are looking at a villa project in the next financial year since NRI investors look at two things primarily - strong rental income and strong appreciation. Both of these are being offered here," said a senior official from DLF.
Further, many real estate firms predict that other segments would also face ripple effects.
"With the demand for office space rising, other segments like residential, retail and hospitality would face a ripple effect. Bangalore is a good option because product quality and pricing is apt.
We believe Bangalore will continue to attract NRIs and we will have to wait and see how this pans out in the next three years," said Karun Varma, managing director, Jones Lang LaSalle India (Bangalore).
Further, Dhaval Ajmera, director, Ajmera Realty and Infra India said, "The real estate market in the city is quite promising and NRI audiences like the climate and the IT boom has worked wonders for the city.
Our project in Electronic City targets those looking for high-end villas. The project is a combination of the benefits of a villa and a bungalow," said Dhaval.
While the city is openings its arms for NRIs looking to invest, agencies opine that although today, NRI investment accounts for 20-30 per cent of business for real estate developers, that could clearly rise to 75 per cent for super premium properties in the next few years.