The Bengaluru real estate market is booming and as per a joint report by real estate association CREDAI and domain experts Colliers and Liases Foras, is on the rise and saw a four percent rise in prices. The city has also seen a steep decline of 21 percent, compared annually, in its inventory overhang.
However, the heavy rains on September 5 which brought the city to a standstill with waterlogging in major areas raised the question of whether the city is actually ready for increased IT hiring and more global captive centres.
In an interview with CNBC-TV18, Nirupa Shankar, Executive Director of Brigade Group discussed the demand picture and the challenges for this market.
She said that there are talks of a master plan for drainage in Bengaluru and therefore the problem should be only read as a temporary setback.
“It is required in terms of the infrastructure – every time there is a new micro-market being created for the city, the urban infrastructure is very important. So there is a talk of a master plan being created relooking at the drainage system,” she explained.
Also Read: Why is Bengaluru flooded? Skymet warns of similar situation in these states in coming days
Karnataka Chief Minister (CM) Basavaraj Bommai accused the previous state governments of 'neglecting' Bengaluru. He said Rs 800 crore was spent on the remodelling of drains but that amount was not utilized properly, which is evident from the fact that the encroachment was not removed.
“We don’t expect to see a massive impact on the demand for housing. There is a lot of disposable income for the IT professionals in the city,” she said.
The company reported a healthy set for quarter one numbers and quarter two numbers are expected to be on the same line.
For the full interview, watch the accompanying video
(Edited by : Abhishek Jha)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
