Karnataka is located in the southern part of India and it is at the coast of Arabian sea. This state is considered as a rich state of India. The major cities of this state are Bangalore (the capital city), Mysore, Belgaum, Bijapur, Chikmagular, Gadag, Hassan, Gulbarga, Kolar, Raichur and Udupi. These towns of Karnataka are well connected with different other places of India. There are also different tourism centers, which are located in this state.
Real Estate Scenario In the last couple of years, Karnataka has made very fast strides in this sector and the overall economical condition of the state is in flourishing phase. To make the most of this positive situation, various real estate companies are rushing into the state. The price of properties in the major towns of Karnataka have been increased several folds due to this booming phase. Different real estate players are trying to provide qualitative spaces to the customers at reasonable price. But, this reasonable price is also very high when compared to the price that was prevailing couple of years back. The main demand of property comes out from those section of consumer who belong to service class and also from NRIs, wanting to make India as their second abode.
If you visit Bangalore, Mysore, Gulbarga etc towns in Karnataka, then you can understand about the drastic changes that have already taken place in these cities. There are big flyovers, warehouses, storages, factories, industries, terminals etc. The proposed metro-rail has added a new dimension in Bangalore's real estate. The funds, which are vested in this regard are being provided by the union government, the state government and different indigenous and foreign financial institutions and banks.
Like other states of India, the real estate property of Karnataka can be divided into three categories. These three categories and their present status have been defined as follows:
Residential Real Estate In the urban areas of Karnataka, there is a peak demand for residential properties. Specially in Bangalore and its outskirt areas, Gulbarga, Mysore, Belur etc, there is an extraordinary demand for the residential properties. According to the raising demand, the price level of real estate is also leaping up. In some tourism places, like Belgaum, Hampi etc. strong potential of high growth in property is present. The real estate companies are enjoying financial leverage in these places as the value of the residential properties is appreciating there very rapidly.
Different real estate players have been catering to the requirements of residential needs. Adarsh Developers with a collaboration , has set up a wide range of villas and row houses. The big apartments and exuberant houses are the example of excellent growth rate of residential real estate in Karnataka. LIC Housing Finance Limited (LICHFL) is another key player which is continuously assisting the people of Karnataka to buy their own residences by providing them home loan at low rate and on easy conditions. The Karnataka government is also assisting the development of residential real estate very sincerely in the entire state.
Commercial Real Estate The commercial real estate was incepted in Karnataka state, and the evidence in favor of this fact is "The Nilgiri Chain", the first supermarket of India. It was established in the year1945. Country's first commercial mall, Spencer's Plaza was also established in Bangalore. The commercial real estate is moving upward in strong pace in different industrial and commercial towns and cities of Karnataka. Bangalore is the burning example of this development. Various IT companies have been operating in this city. The head quarters of Infosys and Wipro are also located in Bangalore city. The Indian Aeronautic Research Center is also present in the same city. These shows the strong root of commercial infrastructure of Bangalore city. Apart from these, a lot of luxurious and giant malls have been setting-up in all the major towns and cities of Karnataka. With growing demand and cost of the commercial real estate properties, the real estate players in this state are gearing up to offer the best option to investors. This makes the commercial real estate a worth idea.
Role of NRIs in Real Estate of Karnataka Contrary to other developed and developing states, Karnataka government is offering low cost operation base to the NRIs, who want to start their businesses in Karnataka. This attracts the NRIs to open their activities first in this state . The upcoming real estate projects are really costly in term of huge investment made by the NRIs. Multi purpose ventures are the other important projects from the NRI's point of view in the state's real estate business.
The Future Trend of Real Estate The future of real estate in Karnataka is very bright. Several reasons are responsible for this bright future. These are:
- Ready availability of an outstanding IT infrastructure.
- Availability of a large pool of professionals.
- Excellent weather condition.
- Strong support from the state government.
The Jawaharlal Nehru National Urban Renewal Mission (JNURM), has recommended Rs.22,536 crore for the upcoming real estate projects in the entire state.