The North part of Bangalore is set to witness growth explosion in the next few years. This region boasts of world-class infrastructure, amenities, and finest residential townships. This region is also home to a booming industry and is the right time to invest. You can stay up-to-date on market trends and live business news by downloading the Economic Times News App. Here are a few tips to invest in the North Bengaluru real estate market.
North Bangalore
As the future of the city develops, North Bengaluru will have an upsurge in real estate demand. This region will witness 18 to 22% appreciation in property prices over the next five years. This is primarily due to new job creation and infrastructure developments. Approximately 1.5 million new jobs will be created over the next five years through various projects in this region. At least 15% of these new jobs will be based in the vicinity. The influx of people will drive the demand for 225,000 new units in North Bangalore. In addition, other real estate industries will flourish as well.
Besides being convenient, North Bengaluru also offers a low cost of living. The land prices are very low in North Bengaluru, making it a cheaper alternative to buying in the city. Several new businesses have already relocated to the area. Developers are trying their best to cater to varied tastes and needs of their customers. Moreover, the proximity to major commercial centers and airports is another factor attracting homebuyers to this area.
The growth of North Bengaluru is evident from the wide roads and excellent connectivity from the ring road. The area also boasts of various IT parks, such as the manyata, the Ecopolis, and the ITSEZ. North Bengaluru is home to a large number of residential projects developed by renowned developers like Bluejay, Embassy Group, Provident Housing, and Godrej Properties. These projects offer a variety of housing options ranging from Rs 40 lakh to 16 crore. The growth of the economy and real estate in this region is likely to spur its growth.
Apart from the booming IT sector, North Bengaluru has a very stable residential market, with a balance between luxury and affordable housing. This is why North Bengaluru has become a preferred destination for both home seekers and businessmen. As a result, the region has excellent connectivity and is home to several reputed developers. The area is also ideal for people of all income levels, as the area offers a wide variety of properties suited for different needs and budgets.
The new international airport has also added to the connectivity of the area. With the new metro line on the way, the area will soon become the future of real estate in Bangalore. The Outer Ring Road provides even more connectivity. With such connectivity, North Bengaluru is the future of real estate in Bangalore. So, make sure to invest in this region today. You’ll be glad you did! Its Investing in Real Estate in North Bengaluru
Whitefield
With a growing population and increasing business activity, it is not a surprise to see more people flocking to Whitefield for their next home. This prime location offers great amenities and services to residents. Whether it is the great schools, renowned restaurants, or shopping zones, Whitefield has something for everyone. Most homebuyers are also looking for social-infrastructure services. The influx of tourists to this neighbourhood has fueled a boom in real estate.
It has recently been named the most preferred residential locality in Bangalore. It is the fastest-growing zone in the city and has become a major business and IT hub. Its infrastructure is well-developed, and the appreciation rates are high. This area offers excellent value for money for buyers. If you are considering a real estate investment in Bangalore, consider Whitefield. It is a great place to buy property as the prices will grow in the near future.
The micromarket in Whitefield boasts all the amenities and connectivity you would want in a city. While traffic can be a nuisance in this area, upcoming metro-rail connectivity is expected to provide much-needed relief. The extended Purple Line is expected to open at the end of 2022, with 13 stations spread over 15 kilometers. Even with the extensive transit options available, the area has poor air quality.
It is surrounded by IT-sectors and is well-connected by the Purple Metro Line. It also has numerous IT parks and Bagmane Technology Centre, two of the major job destinations in the city. Recreational malls have added to the area’s appeal among the working class and youth. The neighborhood has many residential options, and demand for these spaces is rising steadily. You may even be able to buy a ready-to-move-in property in Whitefield if you work in this area.
Located against the picturesque Nandi Hills, North Bengaluru is experiencing a real estate boom. Home buyers in this region seek the serenity of the green surroundings, and developers are creating modern apartments and charming row houses. A new trend in the North Bengaluru real estate market is the plotted development. Plotted developments are being designed with the environment in mind, and strike the perfect balance between luxury and practicality. These plotted developments are attracting far-sighted investors who want to purchase these homes.
ITPL transformed Whitefield. It replaced fields with tiny English houses and narrow alleyways with luxury villas. During the IT boom, IT companies were moving to the area, creating a boom in residential and commercial development. But the infrastructure did not keep pace with the increasing number of people living there. Eventually, whitefield grew into a highly populated, highly-developed area. The future of Whitefield lies in this neighborhood.
Thanisandra
Thanisandra is an affordable locality in the North of Bangalore. The community has excellent transport connectivity. The area is close to many facilities, including the airport, shopping malls, and hotels. The community is also near the Manyata Tech Park. In terms of real estate value, Thanisandra has a higher potential than other localities in Bangalore. This thriving locality caters to a large community of working professionals and offers rental returns that are attractive.
The main road in Thanisandra is undergoing rapid development, adding to its advantages. The 72-km-long Metro Rail Phase II will add to the value of the community. The city also has a number of entertainment and business centers. In addition to a world-class hospital, Thanisandra is close to several shopping malls, including Elements Mall and Lulu Shopping Mart. Other nearby shopping centers include the Orion East mall, RMZ Galleria, and Orion mall.
The area has excellent public transport and connectivity to other parts of the city. The area also has a lot of potential for future development. There are many business tech parks and industrial areas in Thanisandra, and it’s connected to the Peripheral Ring Road via a new metro rail node. There are also world-class medical and educational facilities nearby. In fact, it’s one of the few areas in Bangalore where there is significant potential for new residential developments.
The price of Thanisandra properties has increased by 3%-5% in the past quarter. The average price is Rs 4,142 to 6,241 per square foot. The area is located close to several business hubs and offers a mix of affordable and luxurious housing options. Apartments, ranging from 2BHK to three-bedrooms, are the most popular types of properties in Thanisandra.
The locality is located near many important places such as schools, hospitals, and shopping malls. Its good connectivity provides easy access to many parts of the city, including the airport. The area is perfect for both working professionals and families. Thanisandra is near Manyata Tech Park and is a great option for young families or anyone who wants to be away from the traffic of downtown Bangalore.
Thanisandra is an emerging residential locality in the North of Bangalore. It is surrounded by residential neighbourhoods and is easily accessible by road. It is also close to the Manyata Tech Park and Kirloskar IT Park. It has great transport links and a lake with a jogging track. And the future of real estate in Bangalore will be bright and prosperous in Thanisandra!
The city has seen steady growth in recent years, and the prices of residential properties in Thanisandra are expected to increase by around 55% in the next few years. As more companies are locating in the city, more people are looking for homes in the area. With rising demand, the prices will increase. That is good news for buyers and sellers alike. In fact, upcoming infrastructure projects are also contributing to the city’s real estate market.
The number of empty houses in China has grown rapidly, with the country presently overbuilding by 1.68 times the floor area of new dwellings. This level of construction is simply too high given the country’s population of 1.4 billion, and China needs a slowdown in its construction industry. New dwellings in China are typically 80sqm in size, making the number of empty units incredibly large relative to its population size.
China’s property market is cooling
While China’s property market is cooling, it is not yet a sign that the government’s reform measures are failing. China’s 70 biggest cities recorded price increases of 12.3% in October, a significant increase from the month before. Chinese officials still consider these figures a victory, although they have sounded the alarm bells for a long time. However, a slowdown in real estate in China is tricky to achieve without sending Chinese buyers packing.
The central government has been insisting on property not being used as a short-term stimulus, and has asked lenders to maintain order in the real estate market. But the property market has been cooling lately, as some developers have experienced credit problems. The government’s response to this is to bolster its housing supply and tighten its lending criteria. But the central bank is unlikely to do much more than this, and the impact of the curbs on the market is likely to be minimal.
Meanwhile, China’s property market has been cooling further in May. In May, there were no new land sales in many cities, and the construction of new homes fell by more than 25% year on year. In addition, developers are becoming increasingly constrained in their financing, making last-minute refinancing a desperate effort. Nevertheless, in May, 61 real estate companies announced plans to issue overseas bonds worth over $24 billion. The total number of bonds issued increased by 105 percent in May alone.
As a result, the People’s Bank of China said that risks to the financial system were under control. However, a disorderly series of defaults would send shock waves throughout the Chinese economy. According to the People’s Bank of China, as many as 30 million unsold homes in China are not being sold, the market has become oversupplied. However, the issue has only grown in recent years. As a result, prices are slowing down and stalling in more cities than before.
China’s population is expected to shrink in the near future
A state-sponsored think tank in China predicts that China’s population will peak in the next decade, but will stay above 1.4 billion in the near future. This comes as the country’s one-child policy has been abolished. The United Nations predicts that mainland China’s population will reach its peak of 1.44 billion in 2029. By 2065, China will have a population of 1.172 billion, which will be less than half its 1990 population.
Although China’s population is growing, it is not gaining in fertility. While this is an important factor, a low fertility rate is another cause for population reduction. This is why population projection models tend to underestimate the impact of certain factors, such as the number of children per woman. Some estimates predict that China’s population will decrease in the next two decades, but they underrate the impact of the current economic climate.
The decline in working age population will affect China’s long-term economic growth. It will weaken the domestic demand for consumption, which has been a key driver of economic growth. As a result, the Chinese government should start formulating a plan to deal with the upcoming challenges. As a result, the number of working-age people will be decreasing and the country’s labor force will be reduced.
The birth rate has declined in China in the past five years. It fell from 12.4 births per thousand citizens in 2017 to 7.52 in 2021, the lowest level in nearly 60 years. The decline is related to the Great Chinese Famine that started in 1959 and ended three years before the second benchmark census. Thirty million Chinese died or were delayed due to the famine. A similar number of births are lost or delayed as a result of the famine.
While China’s declining fertility rate may pose an immediate threat to international peace, the changes in its demographic makeup will also impact the world economy. The country has long been the world’s largest manufacturing power, but its aging population is set to shrink in the near future. In the next decade, China will lose the title of world’s most populous country to India. This looming demographic crisis will redefine the country’s economic dynamics and define its role in the global economy. However, it also portends a growing crisis.
China’s real estate market is cooling
While home prices rose in the first half of 2019, they have since slowed. In August, new home prices rose only 4.2% from a year ago. While the July figure was higher, it was the slowest growth since March 2020. The tightening of credit has also weighed on home prices. But despite a slower pace of growth, the property market has continued to remain hot. In fact, China’s real estate investment rose 0.3% year-on-year in August.
The slowdown is likely to continue through the first half of this year and beyond, as a combination of tight credit policies and an impending property tax will weigh on demand. The sector has slowed sharply in recent months, as tighter regulations and government intervention are affecting sentiment. China’s property market makes up nearly a quarter of the country’s economy. Since its introduction in 1998, home buying and construction have boomed. While home prices remain high, there have been signs that the market is cooling.
While the cooling measures have helped stabilize the market, they are not enough. Some cities have implemented a set of rules aimed at stabilizing the market and limiting the size of discounts that developers are allowed to offer. Some local governments have also taken measures to shore up demand and ease liquidity pressure on developers. Harbin, China, recently issued a series of market-friendly measures, including loosening of presales revenue.
There has been a long period of overconstruction in China. In 2003, Beijing’s residential rent prices soared by 32 percent. Meanwhile, the overall inflation rate was only 16 percent. The government began to introduce cooling measures two years ago, and tightened lending standards. But it seems unlikely to slow down the flow of new product. In the meantime, the government is still warning investors against speculative buying and selling.
The Chinese government is ramping up its efforts to reduce financial risks in the real estate sector when the country’s 2020 economic growth targets are met. As part of this effort, it has already implemented the «three red lines» policy, which limits developers’ financial leverage and curbs the growth of debt. Furthermore, the financial regulators recently released a guideline aimed at limiting real estate loan concentration, which lays down numerical limits on the proportion of real estate loans vs. household mortgages.
China’s property market is cooling after years of oversupply
The Chinese property market has begun cooling off after years of oversupply, according to several recent statistics. According to the Hong Kong-based credit rating agency Moody’s, the country will continue to experience stable selling prices this year. However, the number of contract-based sales nationwide will decrease by 5% in 2019. This is indicative of an oversupply of new homes, which could lead to further price cuts.
This cooling in the Chinese property market is a result of many factors. For example, some local governments have relaxed restrictions for buying a second home. In Nanjing, for instance, single residents cannot purchase a second property, and some localities have banned property sales for resident households with two properties. In other cities, such as Hangzhou, the government has made down payments for second homes more expensive. In the city of Jinan, the ban on second homes has even been extended to families. Couples have been caught buying second homes by faking divorces to get a lower down payment.
In fact, the cooling of the Chinese property market is caused by a series of factors, including aging populations, an unfavorable global environment, and excessive debt. The country has an estimated 270% of GDP in corporate debt, and real estate accounts for 160% of it. The overall effect is to slow down the pace of real GDP growth while real estate investment is halted. As a result, the economy can resume growing relatively quickly after the cooling is complete.
According to the Rhodium Group, there are currently 90 million apartments unoccupied in the country. That’s nearly the population of Germany. The reason for the massive number of unoccupied apartments is due to oversupply in certain regions of the country and unaffordable housing prices in some cities. In these regions, developers are concentrating on smaller plots in the most desirable locations. This is one of the reasons why the flow of new homes is better than the stock.
The ratio of unsold space has decreased in most major tier-two cities. However, the inventory level remains high in the northeast region and in some lower-tier cities. In addition to the oversupply, there are other factors contributing to the cooling of the Chinese property market. First, the vast amount of unsold property remains unsold, resulting in a longer inventory cycle. Secondhand supply will be higher in these areas.
