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Bangalore real estate market seen buoyed by poll

By Sej Das

An uptick in Bangalore's real estate market is predicted after the election.
Photo courtesy of Amol Gaitonde

BANGALORE (April 17)—Purchasing a house still remains a far-flung dream for many buyers, while the endless dip in the housing sector has dealt a severe blow to builders. But according to real estate analyst Deepak Singh once the general election is over, situation might turn around.

Singh, who works for Noida-based construction firm Jaypee Greens and is also a freelance real estate analyst, said, “Although we all are waiting for the general elections, the real estate market is waiting for the possible optimism that is anticipated once the results are out.”

Election results do not make or break a market, but they do influence market emotions to a considerable extent.

Political uncertainty definitely has a concrete effect on the real estate market of Bangalore, and it is not easy to detach political ambiguity from wider economic aspects such as employment and interest rates.

According to a survey done by the Confederation of Real Estate Developers’ Association of India - Bangalore (CREDAI Bangalore), the Bangalore general election this year will intensify the scarcity of labor in the housing sector, putting more pressure on developers and builders and thus it will setback the delivery of nearly 1 million homes across the country.

According to Ishawar Bhovi, a freelance constructor, the labor shortage is one of the rising concerns in the industry.

Ishwar said, “Labor shortage is one of the rising concerns of the construction business, and the 2014 general elections will only make things bad for the residential sector as thousands of labors head back to their native villages to work out their franchises.”

Singh sees a gradual revival of Bangalore’s real estate market could be on cards post the general elections, which start Thursday.

Singh said that with a change in the nation’s politics, there certainly will be alterations in the country’s foreign investment policies and that will affect the way investments are made thereafter.

For those waiting to buy a house or sell it at a decent profit, the results of this election is expected to be a game changer.

According to Hansraj Rao, MD of Foyer Builders Pvt. Ltd., real estate prices are likely to go up due to high demand after the general elections in the city.

Rao said: “In the last few years, the real estate market has been going through an intense phase due to being marginalized by our policy makers. This scenario is possibly to change significantly after the general elections.

“A stable administration at the Center is anticipated to speed up the revival process. The consequence of which there can be an increase in housing sector demand and thereby in values as well.”

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