The honorable chief minister of Karnataka, tabled the State Budget 2017-18 in the assembly on March 15, 2017. Below are the key provisions that may have a direct or indirect impact on Bengaluru’s real estate sector.
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Colliers Research view
In line with the central government’s agenda to provide ‘Housing for All by 2022’, Karnataka’s state budget 2017-18 too emphasises housing for the poor. In our opinion, the provision to construct 1 lakh houses in Bengaluru is a welcome move, to resolve urban housing shortage in the city. However, the key lies in its on-ground implementation.
With the city’s physical infrastructure under the spotlight due to unchecked urbanisation, measures to enhance connectivity have also received due attention in the budget. We believe, the infrastructure planned along Outer Ring Road, is likely to provide impetus to the real estate sector in nearby micro-markets such as KR Puram and Hebbal.
Initiatives, such as the construction of an arterial road between Mysore Road and Magadi Road, as well as a new township at Nadaprabhu Kempegowda Layout, will enhance the attractiveness of Kengeri. Development of Tumkur as a satellite city, will also bode well for inviting new industries and stimulate the creation of the new industrial corridor underway. A new innovative township at Kondasapura will further enhance attractiveness of peripheral locations and help in the development of an organised housing market in the surrounding district.