Bangalore’s realty lure continues to keep its lustre

Despite growing tension between political parties and IT industries over infrastructure woes, India’s IT capital Bangalore remains the most preferred destination for the real estate developers.

Rapid industrial growth, high-profile job opportunities, salubrious weather round-the-year, Cauvery drinking water, and life style on par with international standards hold the city top in the India real estate map. Anticipating the boom to continue on the back of expanding ’wealthy’ population, many foreign investments pumped in large investments in the Bangalore real estate market while many more are in the pipeline.

Industry sources said that foreign funds to the tune of $800 million to $900 million would be injected in the south Indian realty market within the next two years and Bangalore is expected to grab 60% of this investment.

Purchase of land has become a distant dream for individuals with land prices ruling between Rs 3,000 per sq ft to Rs 5,000 per sq ft in residential areas. This leaves flats and apartments as the only choice for lower to higher class segment, giving room for more investments from builders. Recently, Morgan Stanley invested $68 million to pick a minority stake in the Bangalore-based Mantri Developers. This deal comes close on the heels of New York-based Siachen Capital picking up an undisclosed stake in another Bangalore headquartered real estate company Nitesh Estates for $100 million in January this year.

Source: http://www.financialexpress.com/fe_full_story.php?content_id=125493