Is real estate in Bangalore facing an irreversible slowdown?

Bangalore has remained one of the safest realty bets in the country. This is saying a lot as the market for homes and other properties has not been at its attractive best in the last few years in a fair majority of the country. But even the city of Bangalore which has been a shining beacon of realty hope has had its fair share of knocks in the last year or so. Let's look at some of the reasons why this slowdown has taken place here and if this should concern buyers looking for real estate here. The city like any other big metro around the country had its fair share of unsold inventory. Though it might not have been in the range of the likes Mumbai Metropolitan Region and Delhi National Capital Region, the overhang was enough to weigh this city down. The burden of the unsold inventory added with the weight of demonetization which took place the closing half of 2016, saw to the stalling of new real estate launches in the city. Another factor that seems to be working against the city’s once vibrant real estate sector is the over all slowdown of the Indian Information Technology sector. The economy of the city depends on this industry through and through. Hence it comes as no surprise to see the realty sector take a hit. But all does not seem to be lost for the capital of Karnataka. There are a few things which are coming to it aid and the over all picture seems to be improving a bit. The strangle hold that demonetization had on the country has been eased now. This has eased some of the pressure endured by the realty sector in Bangalore. Governmental policies have also come into play and eased buyer grievances to an extent. Those who previously sceptical about buying plots or apartments in Kanakapura Road and other such localities will be able to do so without tension weighing them down. This is in large part thanks to the Real Estate Regulatory Act. The Goods and Services Tax has also helped reduce the burden on the buyers. Though there is nothing that can be done about the Information Technology slowdown for the time being, other factors have come in to take up the hole left by this event. Bangalore is well on its way to becoming a smart city. This will raise the city's profile even further. Receiving the smart city tag will make the city more attractive to investors and buyers, thereby ushering in more demand for apartments in Kanakapura Road and many other micro markets around the city. Connectivity is also improving with metro connectivity being extended to cover more micro markets in the north of the city. Though this might not fully make up for the Information Technology slowdown, these factors are a good place to being with if realty in Bangalore has to remain afloat. There has been an ever so slight improvement in the numbers coming out of the city in the first half of this year. So Bangalore might not be a lost cause after all.