The virtual explosion of the housing market in the greater Bangalore metropolitan area in the last decade just goes to show you that bubbles in real estate aren't confined to the United States and the other industrialized western countries. The price of houses and apartment rates in Bangalore in particular have experienced a meteoric rise in recent years for a variety of reason. For one thing, the economy of the city is doing incredibly well due to the homegrown IT industry in India, as well as foreign companies setting up shop in town. It's not a big surprise, considering the environment. Cheap operating costs, a highly educated populace feeding the workforce, as well as a favorable business environment make it an attractive locale for science and industry. Multinational corporations like Siemens, SAP, Oracle, Wipro, Infosys, Google, Dell, and Amazon, as well as many major Internet Service Providers all have campuses in Bangalore, making it the epicenter of the high tech sector in India. This boom in wages and earning power of the local residents has inevitably led to an increase in the cost of living. With so many up and coming workers vying to join India's growing middle class consumer population, this puts upward pressure on real estate prices and drives the market to be more expensive. It's not surprising then, that this situation opened up the window for developers to take advantage of the situation. Driven by the increase in prosperity due to the IT sector as well as major industrial manufacturing operations, Bangalore became known as the Silicon Vally of India, and rightly so. All that cash flying around led to land going up in value at an astonishing pace. A relatively small home plot ended up going for up to 5 million rupees and above. This major increase and land prices made apartment housing far more attractive and popular. Apartments and flats in Bangalore are attractive for a variety of reasons, price notwithstanding. Gated apartment complexes provide safety and security, are relatively clean and comfortable, and provide generally reliable electricity and water services. In addition, many provide additional perks like tennis courts, fitness clubs, playgrounds, and other recreational amenities that one wouldn't have access to at decent price in a private home. Many builders have moved in to fill the demand for upscale living quarters. This has led to a diverse array of construction outfits courting potential tenants and buyers with high quality real estate, with all manner of benefits and perks. Contractors like Adarsh Developers, Kristal Group, and Sobha Developers are putting up units as quickly as possible, but with demand exceeding supply, real estate prices continue to rise far above the percentages that are typical in more developed nations. This positions India, and real estate in particular, as an extremely good bet for overseas investors, however the market pans out elsewhere.
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