Bangalore has been hailed as the evergreen market of property by both investors and builders. The city has managed to survive the downturn of the economy and slowdown of the property sector over the past few years. This year, it has been at the helm of sales throughout the year; and therefore has builders from all across the country converging here to offer numerous types of residential properties. The city also does not have an expansion constraint. There is no geographical hindrance and as a result, the Bangalore of today is almost twice the size of Bangalore that existed two decades earlier.
The main city and the electronic City have now become two major nodes and properties are being developed around the two. It is only a matter of time that the area in between will also evolve to form a “Greater Bangalore” of sorts. Apart from paying guest in bangalore, the city now boasts of villas and other luxury accommodations as well. All of this is a result of the constant economic development that has gone on in the city for decades now. At the helm of this economic growth is the IT sector.
IT Sector as Driver of Growth
Bangalore found its affinity towards the IT sector in the seventies. IBM had become the first multinational company to establish offices in the city. However the company closed its office in the late seventies from Bangalore and left the country because the new economic policies were adjudged to be detrimental to its growth. By this time, many employees of the company were well versed in the emerging field of Information Technology and they started their own businesses in the city. The ever aware populace of the city found requirements for these IT services and as a result, many more such businesses were setup here. Wipro was a small start-up that was established during this era.
Through the eighties and with the right environment in the nineties, Bangalore led the IT services in India. The city also received its first SEZ; which was also a first in the country.
The job creation as a result was the driver of demand in real estate development in the city. Today, most of the technology savvy global companies have their offices established in Bangalore. The net revenue from the IT services exceeds those of Hyderabad and Pune by a margin of over 10%. Till date, the property sector of the city has been driven by IT. It is the employees of these IT companies who buy apartments in Bangalore.
Knowledge Intensive Customer Base
The residents of Bangalore have never feared experimentation, particularly when it comes to technology or services which are futuristic. This is the reason why any new technology related service is accepted quickly here. Housing.com has not only been able to offer services related to searching houses and flats in Bangalore but also has successfully introduced its rental agreement service which allows all property owners to create and deliver a rental agreement to their tenants without having to leave their homes! This is perhaps also the reason why Tata Value Homes chose the city to launch its maiden affordable homes project.
The IT services of Bangalore have helped develop a culture in the city which makes its residents and consumers tolerant towards all new forms of products and services. This is also why the property markets here are user driven.