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  • 1. A WHITE PAPER PRESENTATION ON FACTORS AFFECTING REAL ESTATE PRICE IN INDIA FACULTY GUIDE MRS. SAPNA MODI SUBMITED BY: PUNEET SONI ROLL:55
  • 2. OBJECTIVE
    • The objective of this research is to find out the relationship between price and demand in real estate sector
    • To check whether real estate reflects the economic growth of the city
    • To check what are the other factors which affect price in real estate.
  • 3. OVERVIEW
    • IT boom in Bangalore
    • Technical hub
    • 60% of all software that India exports
    • More than 1500 software company
    • Density more than 29000/sq.km
  • 4. RESIDENTIAL
    • Eastern belt (airport road, brooke field, whitefield, sarjapur road)
    • Southern belt (jayanagar, jp nagar, koramangla, hosur road)
    • North western (bellary road , malleswaram, sadashivnagar)
    • Residential formats (high end villas, row housing, township, apartment complex)
  • 5. PRICES
    • Ranges from 2900/sq. ft. to 6400/sq. ft. 1 st half of 2006
    • In central region prices were 5000/sq. ft. increased to 6800/sq. ft. in 2 nd half in 2007
    • In kormangla 4200/sq. ft. in 2 nd half of 2006 to 4800/sq. ft. in 1 st quarter of 2007
    • Places like jayanagar from 3800/sq. ft. in 2 nd half of 2006 to 5300/sq. ft. in 1 st quarter of 2007
    • Quality development by Total env. , sobha, HM construction)
    • Demand is 25.3 ml. sq. ft. while supply is 22 ml.
    • Residential price moving up since 1999 to 2005 with an increase of 36%
  • 6. COMMERCIAL
    • Office space is available 28 ml. sq. ft. in which 38% is in class A & B
    • MG road is prime CBD in city
    • Secondary BD is hosur road, whitefield and airport road
    • New locations for CBD is ring road
    • Demand is 7 ml. sq. ft. supply 6.5 ml. sq. ft.
    • Vacancy level fallen 5% in 2006-07
  • 7. PRICES
    • In whitefield/airport road in 1 st half of 2006 prices wee 3500/sq. ft. which increase to 4600/sq. ft. in 2 nd half of 2007
    • In MG road 5300/sq.ft. in 2006 to 7200/sq. ft. in 2007
    • Shortage of space lead to increase in rentals in 2004-05
    • Top rent rose to 10% in prime CBD
  • 8. LITERATURE
    • Godrej properties launches residential projects in the name of woodsman estate-INR news (sep-04-2007)
    • Regularization of unauthorized developments & construction in Karnataka-INR news (sep-13-07)
    • Demand for office space grows in Bangalore-Business standard(APR-22-07)
    • Office absorption in Bangalore surpass previous record-Economic Times(DEC-20-06)
  • 9. RESEARCH DESIGN
    • Hypothesis
    • H0: Real estate development reflects the growth of the city
    • H0: Price directly proportional to demand in real estate sector
    • H0: Supply constraint lead to hike in price in real estate sector
    • METHODOLOGY
    • Research type: Descriptive
    • Data collected: secondary
  • 10.
    • SCOPE
    • 1. Beneficial to realtors and builders in analyzing the factors for development and new construction in residential and commercial segments in Bangalore
    • 2. scope of this research is also for individual for accessing the right place to invest
    • 3. This research revealed the factors leads to hike in price in real sector in Bangalore
  • 11. LIMITATION
    • 1. This research is restricted to Bangalore city only
    • 2. This research is based on only secondary data
    • 3. This research is restricted to residential and commercial segments.
  • 12. TENTATIVE CONCLUSION
    • City is expected to witness vigorous leasing activity in current year
    • CBD rentals are likely to move up by 5% due to supply lag
    • Rentals are likely to move up by 10% for commercial for excess demand
    • IT/ITES companies will continue to dominate for commercial space due to new demand for office space
    • City is likely to see new developments due to new entrants of IT/ITES