There is a mismatch in demand and supply of residential and commercial projects in Bangalore.  Currently, supply far exceeds demand and inventories of homes run into years of sales. Home prices need to fall significantly for these inventories to clear. This expected fall isn’t happening, or at least not as fast as people are expecting. The builders are holding the price level tight created a mafia syndicate with political contacts and launch new projects with all gimmicks and freebies (which are useless).  This mismatch coupled with real estate developers holding on to astronomical prices is leading the call for a bubble burst in the real estate sector.

Investors must be cautious,  better not to jump into the bandwagon of these builders.  Approximately 50% of the properties have discrepancies and defects in their titles and violation of conditions levied is beyond astronomical levels.

Many new projects are still on paper and  top builders have not obtained any clearance from the Government bodies and have sold it to buyers  and investors.  According to the study by Assocham, About 75 per cent of 3,540 live real estate projects with outstanding investments of more than Rs 14 lakh crore remained non-starters as of 2014-15, -15,” said an Assocham study.
while over 2,300 projects in the realty sector is never a STARTER, while 964 project, domestic private sector accounted for 95 % share in projects facing delays and on an average, real estate projects in india re facing a delay of 33 months in completion, said Sri.D.S.Rawat, Secretary General, Assocham, while releasing the report.

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