The Bangalore real estate market has entered a transformation phase in 2018, after demand of structural reforms in 2017. The industry has absorbed the changes in RERA from 2017 which includes implementation of Real estate Regulation and Development Act(RERA) and GST which has caused an longed disruption in the real estate sector.
The increase in Demand on lieu of strong commercial office spaces recently in Bengalore, the residential real estate market has seen a wide change in the sales volume. The implementation of RERA act is a positive and long terms aspect which will lead to the recovery of consumer’s sentiments, correction in the inventory and changes in the fragmented industry.
Some of the trends which are evident and favorable in the market include relatively stable demand for every use, creation of affordable projects and mid income categories for decreased and stable participation of investors who were waiting for the capital appreciation in their projects henceforth, Creating a strong demand of the premium segment for completed projects which owed indirect taxes on properties.
The ICRA for the operational performance of the Bangalore’s real estate indicates that sales volume in 2017 is lower in comparison to the previous years because of disruption created by demonetization, the RERA Act and implementation but it cleared all the black money present in the market. There was an urgent need of these policies to provide affordable homes to the buyers as because of black money, there was a huge increase in the prices of properties. After demonetization, the property prices fell down because of no black money and everyone who were dealing in black money, started working legally to avoid any legal proceedings.