Bengaluru’s diverse housing options cater to various budgetary needs and offers property options from affordable apartments, luxury villas to eco-friendly buildings in both central and suburban locations. Mayank Saksena, Managing Director - Land Transaction, ANAROCK Property Consultants Pvt. Ltd shared his perspective, “The residential real estate sector faces unique challenges, as projects take 3-4 years to complete and require accurate anticipation of future client demands. Given, the current scenario, professionals in this field must focus on improving fundamentals to deliver timely and relevant products to their clients.”
Srinivasan Gopalan, Chairman, ArisUnitern RE Solutions, agreed, “During the pandemic, we identified a significant gap and while providing professional services to developers, it led to the establishment of our company to address this lacunae. In just over three years, we've successfully analysed and resolved numerous stuck projects, validating our abilities and purpose.”
Sharing his opinion on the city's demographic shift and its influence on the demand for various residential property types, Farook Mahmood, CMD, Silverline Group; Chairman Emeritus & Founder President FIABCI-INDIA, said, “In 1979, I embarked on a career in real estate, once deemed a lesser profession. Over time, the industry evolved and robust relationships and client satisfaction became critical for success. Bengaluru's progress is due to quality-focused developers providing value amid rising costs and an informed customer base that has played an equally significant role. The pandemic reshaped individuals' priorities, resulting in increased investment in luxury housing and improved living conditions. Despite escalating expenses, demand grows due to better lifestyle choices and enhanced public infrastructure. Ultimately, India's expanding economy will pave the way for a decade of real estate growth despite various challenges.”
In response to evolving client preferences, Kishore Jain, Managing Director, Jain Heights, discussed strategies for maintaining product appeal in the Bengaluru housing market and the fundamental factors to consider for current clientele. He stated, “Since 2000, Bangalore's real estate landscape has undergone a significant transformation, marked by towering structures and innovative design acceptance. Vastu principles have risen to prominence among millennial who view it as a natural law in property development. In the post-COVID era, preferences have shifted towards more spacious accommodations and eco-friendly living, with smaller, fully air-conditioned homes being rejected. Developers now focus on providing high-end amenities to meet the changing aspirations of customers. The idea of sustainability, once unfamiliar, has come to the forefront due to government efforts and public awareness, influencing a shift towards environmentally-conscious designs and net-zero objectives. Efficient space utilization is a characteristic of the Bengaluru real estate market, prompting customers to seek creative solutions for horizontal and vertical living. This evolution has led to the exploration of novel concepts such as double-height duplexes and triplex penthouses.”
Sharing the factors behind Provident Housing Ltd.’s impressive performance in product quality, delivery, sales, and promoting affordable housing, Mallanna Sasalu, CEO, Provident Housing Ltd, articulated, “The affordable housing segment since 2006 has evolved with various government schemes and classifications. Today, the term "affordable housing" covers a wide range of property values, from 45 lakhs to 1.10 crore rupees in metropolitan cities. Provident is focused on providing value to customers within this price range by creating liveable spaces rather than continuously reducing unit sizes. The market has shifted towards increased demand for properties valued between 50 lakhs and 1 crore rupees and the proportion of cheaper affordable housing below 50 lakhs has decreased.”
Highlighting the luxury residential trends and offering an insight into what home buyers are expecting, especially given the level of amenities and standards, Rajendra Joshi, CEO – Bangalore, Lodha Group, stated, “Lodha is renowned for luxury, yet its significant presence in mid and affordable housing segments is often overlooked, which currently accounts for 35-40% of our business. In the growing Bengaluru market, which has evolved immensely in recent years, we identify great potential within the higher-end segment worth 2.0 crores and above. Bengaluru’s well-informed customers prioritize quality, delivery, and service levels during construction and, most importantly, post-handover maintenance. Lodha takes pride in exceptional design and construction, proven by India's tallest residential tower and premium units worth 250 crores. However, our key differentiator lies in providing exceptional service at every stage of the customer journey. We have established a robust hospitality and property management teams to deliver world-class amenities maintained to the highest standards.”
In recent times, a noteworthy transformation has occurred regarding the significance of legal dimensions within the realm of real estate. Sudheer Madamaiah, Partner, Khaitan & Co., informed, “We were involved in a property transaction in Whitefield before the COVID-19 pandemic, which took almost six years to finalize due to various factors. These included regulatory and approval issues, involvement of government bodies, and the mutation process with corporations. This gives an idea of the extensive time period one real estate project deal takes to complete. To understand the situation better, let's discuss Karnataka's land laws, specifically regarding Karnataka Scheduled Castes and Scheduled Tribes (Prohibition of. Transfer of Certain Lands) Act, 1978. The legal restrictions limit developers' abilities to freely acquire land from SCST owners. Additionally, the Land Reforms Act and subsequent amendments further hinder developers and non-agricultural buyers. Despite advancements in RERA, SEZ policies, FEMA regulations, and FDI policies, there are still obstacles preventing clear land acquisition.”
DYNAMICS BETWEEN DEVELOPER & BUYER
The dynamics between property developers and purchasers have evolved due to alterations in regulatory frameworks. Mayank Saksena expressed, “It is imperative for developers to adeptly manage and mitigate legal complications after project completion. Ultimately, the ability to adapt to the shifting real estate regulatory environment will prove essential for sustaining the industry's long-term prosperity.”
Srinivasan Gopalan concurred, “The real estate industry must prioritize technology integration to enhance transparency and customer experience. Utilizing technology on the CRM side can streamline processes, lower costs, and improve overall efficiency. Developers must seek partnerships and maintain a customer-centric approach, as customers are the central equity in the business.”
Rajendra Joshi added, “Sustainability, though currently popular, has not been widely implemented in the real estate industry. In this regard, Lodha leads this movement in India, ranking first in the Dow Jones Sustainability Index and third worldwide. The company aims to be net carbon neutral by 2050 and encourages the industry to prioritize sustainability.”
Kishore Jain expressed, “Indian government has pledged to achieve net-zero by 2050 that emphasizes the importance of sustainable development. Despite facing challenges such as increasing costs and balancing innovation with cost control, the Bengaluru real estate market presents opportunities to create net zero developments.”
Farook Mahmood was of the view that the critical element is the human factor, as it is the driving force behind any technology and decision-making. “Despite advances in digital tools, human interaction is necessary for facilitating transactions in real estate. Purchase decisions are influenced by trust and confidence built through personal interactions. Currently, investing in properties in Bengaluru and other parts of India is favourable due to increasing property values and the presence of reliable developers.”
Anticipating emerging trends and market shifts in 2024, Mallanna Sasalu said, “The residential market growth trend is expected to continue due to urbanization, with sustained growth over the next few decades. Challenges in land acquisition and project completion will prevent rapid growth, resulting in extended wait times for prospective homeowners. Housing prices will likely increase moderately but consistently, surpassing inflation rates of around 6%.”
Sudheer Madamaiah wished for greater ease of doing business in the coming years, “The long gestation periods of a project arise from the countless sanctions and permissions required. Hopefully, the processes will get more transparent and easy to navigate with increased technology adoption among all stakeholders.”
Despite advances in digital tools, human interaction is necessary for facilitating transactions in real estate - Farook Mahmood, Silverline Group
Changes must be implemented to ensure clear land can be acquired and developed without hindrances, ultimately benefiting customers with transparent property ownership -Sudheer Madamaiah, Khaitan & Co
Ultimately, we strive to create an enduring legacy for customers by catering to their needs today while preserving future generations' experiences- Rajendra Joshi,Lodha Group
The market for affordable housing in 50 lakhs to 1 crore range now accounts for approximately 55-58% of the country's total market, with most developers participating in it- Mallanna Sasalu, Provident Housing Ltd
The next five years sector should focus on technology investment to keep up with changing demands and evolving markets- Srinivasan Gopalan, ArisUnite
To succeed, developers must maintain customer-focused strategies and efficiently manage resources in a rapidly changing environment- Kishore Jain, Jain Heights
Bengaluru’s discerning customer base is largely from the IT/ITeS sector. They look for a developer that has technological prowess and has transparent processes, offering a lifestyle product- Mayank Saksena, ANAROCK Property Consultants Pvt. Ltd
.jpg)
