Emerging Real Estate Trends in Bangalore
What does 2021 have in store for Bengaluru’s real estate industry? While the year 2021 had a significant impact on the real estate industry, it surprised everyone with its resilience and robust potential for recovery. The real estate sector in India has always been characterized by rapid growth, with Bengaluru being a frontrunner in the same. As 2021 is poised to be a year of recovery for the sector, several new trends have emerged. Here are 5 emerging real estate trends in Bengaluru!
Technology adoption
This trend should come as no surprise, as almost every sector in the world is undergoing a massive digital revolution that promises to transform its practices and products. Digital technology has positively impacted all real estate offerings - from residential complexes to commercial properties. Smart home technology is definitely rising in popularity, and properties with pre-installed devices are likely to rise in demand. Technology has also improved construction practices, and agile practices are likely to enable quicker completion of projects. Proptech, precast technology, 3D printing and digital construction are some innovations that are likely to transform the sector in upcoming years.
Shift in preferred localities
The advent of work-from-home has changed the manners in which individuals view home ownership, and a shift in their preferred localities is one such change. When buying or renting a house, a short commute between one’s home and office is often a top priority for individuals in a city like Bangalore, leading to localities like Whitefield, HSR layout, Electronic city and Marathahalli seeing high demand in pre-COVID times. However, with the combination of work-from-home and individuals wanting to stay with their families, this trend is seeing a shift. Individuals are now looking to buy and rent properties with more amenities and space, irrespective of its distance from their workplace. As a result, areas like Horamavu, RT Nagar, Yelahanka and Hebbal are growing in popularity.
Preferred residential formats
The increasingly popular trend of affordable and mid-segment properties is likely to continue this year, and ready-to-move-in properties are likely to be the most preferred option. Trends also point towards a rising demand for 2.5 BHK and 3.5 BHK apartments, as the extra space can be converted into temporary work-from-home spaces. Aside from the growing interest in flexible housing formats, the rising need to stay at home has also generated new interest in integrated townships, such as Brigade Cornerstone Utopia and Brigade Orchards, in which all facilities and amenities are available in proximity.
Digital home buying
The trend of digitalization does not stop with digital technology in homes, but rather, extends to the process of buying a house as well. As the pandemic struck, developers created avenues for home seekers to explore their options through digital platforms. This shift is likely to continue being prominent in the future as well. Home buyers can now virtually visit the properties of their choice from the comfort of their homes. Features like online payments, digital signatures, video conferences and digital sales have served to make digital home buying a reality. This made it particularly convenient for NRIs to invest in property in India. Brigade too has conducted several successful virtual property expos that have enabled many home seekers to find their dream home, virtually!
Tax benefits and private investment formats
The budget 2021 has created avenues for people to enjoy tax benefits on affordable housing and private investment formats, such as REITs. The decision to extend tax exemptions and deduction of interest on home loans till March 2022 has definitely been a welcome development for potential home buyers. Additionally, the tax exemptions on affordable rental housing formats increases the accessibility for migrant workers. The finance minister further took steps to make private investment formats such as REITs and InvITS more accessible to the common man through exemptions on TDS (tax deducted at source). This, when combined with the proposal to include foreign portfolio investors, is likely to increase private participation in the real estate industry.
In conclusion, things definitely seem to be looking up for Bangalore’s real estate industry, with the real estate growth rate moving in an increasingly upward direction. The city is home to several innovative upcoming real estate projects, that cater to latest updates and changes in the industry. From technological developments to financial policies, real estate trends definitely point towards the time being right to take the plunge and buy your dream home.
Sources:
https://www.financialexpress.com/money/budget-2021-hits-and-misses-for-real estate /2187721/
https://roofandfloor.thehindu.com/real estate-blog/bangalore-realty-market-poised-for-recovery-in-2021/
https://www.99acres.com/articles/expectations-from-the-bangalore-real estate-market-in-2021.html
