Bengaluru’s real estate landscape, CREDAI Bengaluru has joined forces with the state government to address several pressing issues affecting the sector. This collaboration aims to foster a more efficient and sustainable development environment, crucial for the city’s growth. During a recent media briefing, the President of CREDAI Bengaluru, marking his first year in office, expressed optimism about the real estate market’s prospects. He highlighted the ongoing efforts to implement reforms that would streamline the development process and alleviate challenges faced by developers.
Central to CREDAI Bengaluru’s reform agenda is the clarification and simplification of the Transferable Development Rights (TDR) process. Currently, acquiring a TDR certificate is a cumbersome procedure, often resulting in delays. By standardising the process and ensuring that Development Rights Certificates (DRC) align with prevailing guidance values, the reforms aim to provide developers with greater confidence. This would facilitate the acquisition of land for infrastructure projects while ensuring landowners are not disadvantaged. Another critical focus area is the streamlining of plan approvals. CREDAI Bengaluru advocates for a single-window system to expedite the issuance of No Objection Certificates (NOCs), a reduction in approval fees linked to guideline values, and the standardisation of zoning regulations. Simplifying these processes would enhance operational efficiency and promote ease of doing business.
The proposal also includes measures to alleviate financial pressures on developers. CREDAI Bengaluru has recommended lowering stamp duty rates for Joint Development Agreements and Mortgage of Title Deeds, which have recently seen a rise on an ad valorem basis without caps. Additionally, a staggered payment scheme for labour cess is proposed, acknowledging that construction is a prolonged process. The government’s response to these proposed reforms is expected to significantly impact Bengaluru’s real estate sector. The residential market is forecasted to grow by 10-15% in 2024, driven by robust IT sector expansion, a burgeoning start-up ecosystem, and ongoing infrastructure enhancements. Areas such as Bagaluru and Varthur/Gunjur have seen impressive price hikes, with Bagaluru’s residential prices climbing nearly 70% over the past five years. Sarjapura has also experienced a 50% price increase, reflecting strong demand.
Infrastructure developments, including new metro lines and improved road connectivity, are set to further elevate property values and quality of life in these emerging micro markets. To address the shortage of quality contractors, developers are focusing on in-house construction and adopting innovative technologies. CREDAI Bengaluru remains committed to advocating for its members and collaborating with government authorities to resolve sectoral challenges. The ongoing efforts aim to create a more favourable investment climate, ensuring continued growth and sustainability for Bengaluru’s real estate market.
