Monday, April 17, 2023

Luxury Homes In Demand As Bangalore Real Estate Market Soars In 2022-2023 : CREDAI


The real estate market in Bengaluru has displayed an impressive resurgence in the financial year 2022-23. Despite the obstacles created by the COVID-19 pandemic, the city's real estate industry has exhibited a remarkable rebound.

The market has observed a noteworthy decrease in inventory while displaying an increasing demand for luxury homes. As per CREDAI Bengaluru, there has been a surge in the aspiration for larger homes while the demand for affordable housing has taken a backseat. Furthermore, the trend of ready-to-move-in properties has been gaining momentum among prospective homebuyers.

"Bengaluru’s real estate market has witnessed a significant shift towards luxury homes in FY 22-23. With a high demand for larger, ready-to-move-in properties, homebuyers are showing a willingness to invest in premium homes that offer comfort, style and luxury. This trend is expected to continue in the coming years, making luxury homes a lucrative segment for real estate developers in Bangalore,” said Bhaskar T Nagendrappa. President, CREDAI Bengaluru.

Despite the rising costs of construction, labour, statutory fees, and raw materials, the real estate sector has seen a significant growth. The desire for home ownership has been on the rise due to the uncertainty created by the pandemic, resulting in a surge of investments in the real estate sector.

Post pandemic, the psychology of homebuyers has shifted significantly towards luxury homes. According to CREDAI, the uncertainty and upheaval caused by the pandemic have made people prioritize their mental health and well-being, leading them to seek comfort and security in their homes. This trend is not just limited to those with high disposable incomes, but also those with more modest budgets. The pandemic has made people realize the importance of having a home that can serve multiple purposes, such as a workspace, gym, and entertainment center.

"The pandemic has altered the way we look at our homes. People are now seeking more than just a place to live - they want a sanctuary that can cater to all their needs. Luxury homes are designed to offer just that - a space that is not just aesthetically pleasing but also functional and equipped with state-of-the-art amenities. The shift towards luxury homes is not just a passing trend, but a reflection of a broader change in the way people view their homes. The pandemic has accelerated this trend, but it is likely to continue even after the pandemic subsides,” he said.

The sector has also witnessed an upswing due to the drop in interest rates and higher savings among potential homebuyers. These factors have collectively contributed to the growth and sustainability of the real estate market.

"The pandemic has redefined the role of our homes, from mere living spaces to multifunctional sanctuaries. It has been transformed into hospitals, offices, restaurants, and entertainment venues. This shift, combined with reduced expenditures and increased savings, has empowered individuals to invest in their dream homes,” he said.

The IT/ITES sector has emerged as the major homebuyer in Bangalore. People prefer staying closer to their offices due to the city's heavy traffic. The most sought-after locations by the home buyers are xxx, xxxx, xxx. (Need the locations from CREDAI).

Real estate companies are turning to digital and social media platforms to connect with potential homebuyers. Technology is also being implemented by developers to elevate the living experience of homeowners. From using AI to analyze data to incorporating mechanical tools like vacuum cleaners and monitoring devices for plant inventory, real estate brands are enhancing the customer service experience. These tools simplify home management processes while increasing efficiency, resulting in a more streamlined and customer-friendly experience. This technological transformation in the real estate industry has provided homeowners with more convenient and hassle-free ways to manage their homes.

On the encouraging outlook for the Bangalore real estate market in FY 22-23, Nagendrappa, said, "Despite the challenges, the real estate market in Bengaluru has shown resilience and growth potential. The sector's customer-centric approach and adoption of innovative technologies have contributed to the market's success. We are optimistic about the future of the Bangalore real estate market."

CREDAI BENGALURU

Established in 1999, CREDAI Bengaluru are the organisers of the Real Estate sector for the Bengaluru Chapter. With 233 dedicated, reputed members, it has been key in making Real Estate more authentic and simple.CREDAI Bengaluru is part of State Level Federation and National Confederation. CREDAI Bengaluru work towards creating a more transparent, corruption free market for both builders and consumers.CREDAI Bengaluru closely work with government representatives, policy makers, investors, finance companies, consumers and Real Estate professionals.

For more details log on to https://www.credaibengaluru.com/

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