πŸŒ† Rise of mid-scale developers

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According to experts, Bengaluru’s real estate market currently has a 35 percent proportion of large-scale developers, up from 25 percent two years ago, and a 25 per cent share of medium-scale developers, up from 15 per cent.

What’s it about? Due to a severe credit crunch, mid-scale or category B developers were forced out of the market in the state following COVID and the introduction of the Real Estate (Regulation and Development) Act, 2016. However, recently, with a 30–40% increase in the city’s demand for inventory, they have started to slowly recover.

  • According to ANAROCK Research, Bengaluru had 26,030 delayed housing units worth β‚Ή28,000 crores as of May 2022.
  • Investors said that the backlog and the state’s real estate regulator’s lengthy order processing timesβ€”often up to three yearsβ€”had affected consumers’ preferences in the city. According to experts, Bengaluru’s postponed projects have provided possibilities for the city’s medium-segment developers.

Unique from others: In terms of obtaining completion and occupancy certifications, Bengaluru is unique from other parts of the nation. It is simpler for a builder to obtain plan approvals and inspections for occupation and completion certificates for smaller projects with a maximum of two towers than it is for bigger ones. Smaller developers may easily obtain these, which has led them to begin completing projects quickly.

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