GRI Club India: Bangalore’s Resi Market
GRI Club India
High-level content and networking, shaping the present and future of the real estate market
Yesterday, November 19th, marked the first edition of Bangalore’s Resi Market, GRI Club India’s new residential real estate event, held at The Leela Palace in Bangalore. The city recorded the highest growth in residential property prices among India’s eight major cities, providing the ideal backdrop for discussions on the sector’s opportunities and challenges. 🏙️
Leading developers, investors, and stakeholders convened to address the future of Bangalore’s residential sector, with the event opening on a high with a presentation on housing trends in the city and across India.
🔸 The session "Rising Residential Prices in Bangalore - A Barrier to Luxury Property Sales?" highlighted infrastructure as a critical growth driver, with metro connectivity and micro markets playing transformative roles.
While residential prices have doubled since 2020, the luxury market demands greater differentiation through exceptional aesthetics, premium amenities, and branded residences, which are increasingly catering to post-pandemic buyers seeking meaningful experiences.
🔸 During the session "The Next Generation Home: Developing Beyond the Conventional", discussions centred on future-ready residential concepts shaped by urbanisation and shifting buyer expectations.
Developers are embracing next-generation living through service-oriented innovations, from tech-enhanced senior living spaces to intergenerational communities. Features like pet parks, sports arenas, and staff quarters are fast becoming standard as developers respond to the evolving needs of Bangalore’s homebuyers.
Look out for a full report on the event, coming soon to the GRI Hub News!
What could US elections mean for India’s economic future?
With Donald Trump’s return to US presidency, India is poised to strengthen its position as the largest market for Trump Towers outside the United States. Tribeca Developers, the licensed partner of the Trump Organization in India, has announced plans for six new real estate projects across key cities, encompassing a total of 8 million square feet, with an impressive sales potential exceeding INR 150 billion.
🏢 This expansion builds on India’s existing position as the second-largest global market for Trump-branded real estate, with four completed projects spanning approximately 3 million square feet. In a notable step forward, the brand is entering India’s commercial real estate segment, with its first Trump-branded office complex set to debut in Pune by mid-2025.
The election outcome, however, brings broader implications for India’s real estate and economic landscape. A pressing question arises: how might changes in US interest rate policies under Trump influence foreign institutional investment (FII) in India?
🔹 While US interest rate adjustments often lead to capital outflows from emerging markets, India’s strong economic fundamentals, favourable demographics, and pivotal role in global supply chain realignments position its real estate sector as an attractive destination for international investors.
Adding to this, changing immigration policies under Trump, such as tighter H1B visa norms, are prompting Non-Resident Indians (NRIs) to invest more in Grade A commercial properties and luxury residential markets in major Indian cities, further encouraged by regulatory improvements and the rising convenience of digital transactions.
🏭 Trump’s trade protectionism policies, while challenging, could also create new opportunities for Indian exporters. Sectors such as auto components, solar equipment, and chemicals could gain from increased competitiveness as tariffs on Chinese goods redirect demand. Simultaneously, Indian oil and gas companies stand to benefit from lower global energy prices if Trump’s fossil fuel strategies reduce China’s consumption.
Meanwhile, economic uncertainties, such as a stronger US dollar potentially leading to capital outflows and inflationary pressures, cannot be overlooked. Despite these risks, India’s economic resilience, strengthened by strategic partnerships with the US, positions it well to adapt and thrive in this environment.
🤝 Donald Trump and Prime Minister Narendra Modi share a friendly connection, with Modi being one of the first to congratulate Trump after his win. During Modi’s visit to the US last year, the White House highlighted shared goals in defence and commerce, reflecting India’s strategic role as a counterbalance to China.
Despite trade policy differences, Trump has praised Modi as "fantastic" and recognised India as a key global partner. Irrespective of changes in political leadership, this robust partnership continues to evolve, driven by shared strategic interests and mutual economic priorities.
Cost of construction rises 11% annually in 2024
The Indian real estate sector continues to face significant pressure from rising construction costs, which have increased by approximately 11% over the past year, according to a recent report by Colliers.
Recommended by LinkedIn
🏗️ Contributing to this trend are moderate price hikes in materials such as sand, brick, glass, and wood. Key materials have shown some respite, with cement prices declining by 15% and steel recording a marginal 1% decrease.
Labour costs have been a particularly major contributor to this escalation, surging by 25% annually and accounting for over a quarter of total construction expenses. Over the past two years, they have risen by 80%, and compared to 2019, the increase is a staggering 150%.
📈 This has had a pronounced impact on the residential segment, where construction costs have risen by 11% year-on-year, followed by commercial real estate at 6% and industrial developments at 3%, forcing developers to reassess their strategies to maintain financial viability while delivering high-quality projects.
Amid these rising costs, the Supreme Court’s recent ruling on Input Tax Credits (ITC) has offered a much-needed relief to developers. ITC enables businesses to reduce their tax burden by allowing them to deduct the GST (Goods and Services Tax) paid on goods and services used in their operations from the GST they owe on their sales or services.
📝 By enabling developers to claim ITC on construction costs for commercial buildings intended for rental purposes, the ruling aligns taxation policies with business needs, effectively reducing tax liabilities, and providing critical financial relief to developers grappling with escalating material and labour expenses.
To counter these challenges, developers are also increasingly turning to strategic solutions that balance efficiency and management. Investments in workforce training and automation technologies are addressing skilled labour shortages, enhancing productivity, and improving project timelines.
🔄 Additionally, efforts to optimise supply chains, through diversifying suppliers and sourcing materials locally, are helping to contain expenses. Developers are exploring circular economy practices, which not only reduce costs but also align with sustainability goals, an area of growing importance for the sector.
On December 10th, GRI Residential India 2024 will convene senior decision-makers in the housing market in Mumbai. A key discussion session, “Deep Diving into Costs, Margins, and ROI for Residential Real Estate,” will address the challenges of rising development costs and highlight the innovative strategies developers are employing to adapt and sustain strong returns.
Other News:
Corporate Radar:
If you’re enjoying your GRI Insights content, don’t forget to subscribe!
War Lord & Landlord,Presently Handling the SALE of his Fabulous Bungalow Plot in BANER,PUNE INDIA
1moFOR OUTRIGHT SELL: UP-MARKET LUXIROIUS RESIDENTIAL PLOT IN BANER Pune (INDIA)IDEAL FOR GCC/ HNI/UHNI. Area 550 SQM (APPROX 5920 SFT) “Vaastu Shastra” Compliant. HIGH Reckoner Rate! FSI is 1.10. price of Rs 11.50 Cr. (USD 1,450,000) Contact: Maj Uday SATHE, VrC WA: +918275536829 usfinrealtycom08@gmail.com Hare Krishna