Millennial Workforce & Senior Housing Driving Bangalore Real Estate Market
By: Shruti Kaura, CEO, Veohm Projects | Friday, 20 May 2022
A woman entrepreneur, Shruti Kaura not only has a penchant for excellence but also a refined creative spirit to match. She has built Veohm from strength to strength, owing to her unique vision; to create exceptional living spaces that are a harmonious blend of comfort, joy and nature, homes that are a little slice of paradise in the buzz of our daily lives.Her hallmark developments include The World of Veohm building, Indiranagar, Century Infiniti, Sarjapur, Oorve, Cedar Woods.
The best investment on Earth is earth. – Louis Glickman
Everyone wants a piece of land. It’s the only sure investment. It can never depreciate like a car or washing machine. Land will only double its value in ten years. – Sam Shepard
The recent COVID-19 pandemic that struck has shown the importance of investing in houses and real estate. According to business industry experts, humongous growth and opportunity in the real estate market are predicted to be worth $1 trillion by 2030. Demand for residential properties has also surged due to increased urbanisation and rising household income. India is among the top 10 price appreciating housing markets internationally. * Organized retail real estate stock is expected to increase by 28 percent to 82 million sq. ft.
The increase in the millennial workforce in Bangalore is one of the biggest trends in real estate in India. This could also lead to an increase in demand for commercial spaces such as offices, co-working spaces, studios for start-ups, etc. However, not everybody can invest in massive commercial spaces that require hefty investments.
With the millennial workforce seeking more career opportunities in the Silicon Valley of India, there is an increasing trend of looking for sustainable housing in real estate listings. According to several studies, the millennial consumer behavior pattern involves seeking environmental-friendly options, be it daily essentials or investing in assets. Millennials and the public in general, have started to follow the school of thought that encourages “collective empowerment”. Hence, a rise in demand for sustainable living options in the Bangalore real estate market is visible.
The third trend in the Bangalore real estate market would be co-living and student housing options. Apart from being a lush green city blooming with flowers in spring, it also blossoms year-round with career and educational opportunities. College students and young professionals look for real estate listings near their educational institutions and workplaces. For students, the amenities in the college dorm may be limited and would come with restrictions. On the other hand, an apartment would make them feel safe, and help them feel “at home”.
Housing for senior citizens happens to be one of the biggest trends in real estate in India. Most children with elderly parents look to strike a balance between staying close to family and having their own privacy. Most often, children would feel reluctant to leave their parents at the senior homes and would look for apartments in gated communities and societies. The Bangalore real estate market is touted to be the most sought-after market as the city is known to be cool, calm and breezy. With the apartments packed with amenities like 24/7 security personnel, CCTV cameras, fire safety, etc. they guarantee a safe environment for seniors.
There are different types of investors who put their money in the real estate markets. Therefore, an understanding of the real estate markets has to be rooted in an understanding of the underlying participants as well as their motives. The most important feature based on which we can distinguish real estate investors is their investment motive.
End Users: This is the most common category of investors that you will find in the real estate market. Usually people who buy real estate are buying their own homes. They have the intention of staying in the house whichand they look at it as a lifestyle choice and not just a financial investment. Hence, factors such as lifestyle amenities available nearby as well as the distance it takes to commute to work become extremely important.
Lastly, we have the long term real estate investors. Like the “flippers”, these people too invest in the real estate market to make money. However, their decisions are not short term as they know that the returns steadily grow in value over a number of years. Many corporations are also present in the real estate investment business.
Flipping properties is never a good idea in real estate investor as there are significant costs associated with real estate transactions. These costs are called “transaction costs” because they are triggered when a real estate transaction takes place.
Brokerage is one of the most known costs associated with real estate transactions. The job of the broker is to make the buyer and the seller meet,to assist during the period of negotiations and to ensure that both the buyer and the seller are on the same page. To do so, they charge a fixed percentage of the transaction value from both the parties which is a substantial cost in high value properties.
Search costs are another commonly known cost that are associated with real estate investing. These costs include money paid to newspapers and magazines to advertise the property. Nowadays, online portals allow sellers to advertise their properties for free. However, serious sellers use the premium paid services offered by these websites. Apart from that, there may be costs associated with conducting a credit check of the potential clients to determine their credit worthiness.
The real estate business requires extensive paperwork as the costs of real estate are extremely high. Therefore when any person transacts in real estate,the legal chargesarehighastheyneed to ensure that the deal which has been agreed on in person also finds its way to an agreement.Thus, attorneys and lawyers have to be engaged in the process.
Financing Costs of the housing transactions is high nowadaysas most realestate transactionsare financed using borrowed money. As a result, there are some transaction charges that need to be paid to the lender as well.This charge is also a substantial sum usually accounting for 0.15% to 0.25% of the property value. Apart from the lenders also charge various fees to verify the title of the property in question and for a variety of other services that they provide.
The Rise of Women in Real Estate Industry
Real estate has always been organized to work around people's lives, rather than the other way around. That's precisely why it's one of the few professions today where a predominantly female workforce would do very well. Currently the numbers are minimal but in the last ten years the addition of female workforce in this industry has been substantial with a huge scope of growth.
Dottie Herman Richest Self-Made Woman in Real Estate Reveals How She Overcame Childhood Trauma and Turned Pain Into Power. On the surface Dottie Herman is one of the richest self-made women in America. As CEO of Douglas Elliman, last year alone she led her team to sell more than $27 billion in real estate.
Although it may seem that in India this is a difficult profession for women but slowly the real estate business is opening up to a female work force and more and more avenues within real estate like architecture.