Bangalore Property Market: Now With the Goodness of Public & Private Funding..!

Bangalore Property Market: 

Now With the Goodness of Public and Private Funding..!

by Ms. Vineeta Tiwari 

Bangalore realty market shining bright with success and the foremost reason behind the grand achievement is the high migration rate. The city experiences a raise in the number of people from different Indian localities every quarter, at a good rate. And why not; Bangalore has everything that can satiate the professional as well as housing needs of an expat.

IT hubs, manufacturing industries, aerospace and aviation domain are some of the arenas that are booming at the moment and the employment market is rippling with some of the best paying jobs here. This has not met the dead end yet as the public and private corporate bodies are raising and planning funds to boost both residential as well as commercial zones.

Government of India and private level financial institutions have raised funds from abroad and from own treasury to elevate the standards of the property market of the city to a much higher level.

Why Taking Interest Anyways?

Well this is quite a feasible question that why Bangalore, anyways? There are many other cities that high in rank of development and urbanization but Bangalore still tops the billboard. The industrial revolution that gave birth to the tag of ‘Silicon Valley’ for Bangalore can’t be ignored and the very contribution has led to the IT revolution and stationing of industries catering to different domain, altogether.

Bangalore is developed in all aspects and when it comes to the employment or economy market watch, there is no competition. The very fact has managed to pull in a slew of foreign investors and has coaxed government as well to incur in funds for raising the standards of the realty market of the city.

Here are some of the episodes that offer clarity on this:

Funds For the City: For Good!

1.     Initiatives From the Government of India

Bangalore is a city that encapsulates a range of IT Hubs and industries that operates in several different firms. Given the demands of the employment market and the entrepreneurial suitability factor of the city, the state as well as the central government has planned to incur in a whopping amount worth around Rs. 10,000 crores that will enable stationing of tech giants and startups. 

The government and the industry specialist feel that the techies here in India are making products but for especially for foreign clients. Therefore, they feel that innovation should be here. The funds will be for electronic development on a whole. The new realty revamping will definitely help the property market in Bangalore to grow, leaps and bounds.

2.      Revised FDI Norms

The new ‘Modi’ Government has actually brought in ‘ache din’ for different domains and realty market is one of them. According to the new government policy, the FDI norms have been eased to an extent that the foreign investors can easily enter the market now and put in their capital. They can now easily sell assets or transfer their stakes as well as repatriate proceeds right before the completion of a project. 

There are other benefits mentioned in the Union Budget 2014 that can be reaped; one of the most important ones is the allocation of Rs. 4000 crore for National Housing Bank (NHB) so that the flow of cheaper credit for affordable housing can be widened.

The Bangalore realty market is definitely taking advantage of this updated policy and this can be seen in new and improved residential as well as commercial zones in the city.

3.      HDFC Property Funding

HDFC Property Fund, the private equity arm of Housing Development Finance Corp. Ltd has planned to raise 250 million dollar with the aid of an offshore development. The treaty also involves another fund of whopping 150 million dollar by the end of the year. 

Bangalore is one of the chosen cities to take advantage of the heavy amount and it is expected that the Bangalore realty market will witness a boom with this. The planned fund amount will be incurred into the residential space and expects to earn an internal rate of returns (IRR) of 23-24%.  

The real estate arena in the dynamic city of Bangalore will have a good push and this investment will take the success graph of the comfortable housing options beyond the threshold level. The residential components in Bangalore will be benefitted from the property funding schemes.

The Last Sweet Words

Bangalore’s property market is going through a good path. The capital collection either from the foreign operating bodies or the government itself will have a very positive impact on the commercial as well as residential units of the city.

Author Bio:
Ms. Vineeta Tiwari is a keen writer on Global Economy and Realty market. She has written articles on Global realty market and ongoing trends and tips for investors. An ardent reader, she is happy to pen down research based write-ups for global audience. Currently, she is professionally associated with leading realty portal, 99acres.com.

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