02 June 2020

Table of Contents for Realty Biz

Realty Biz

Garden cheer


A reduced inventory is a sign of business picking up in Bangalore’s real estate sector. 


From a real estate business perspective the mood in India’s Garden City has considerably improved. While concerns were raised about the number of unsold inventory – placed at 100,000 — in Bangalore late last year a pickup in sales combined with fewer launches have significantly reduced the number of unsold residential inventory to just 2.2 per cent as per a study conducted by JLL for the Confederation of Real Estate Association of India's (CREDAI) Bangalore chapter. The report is in a sense a vindication of the stand that the city's real estate market is not as gloomy as is sometimes portrayed to be. Many are wont to say that Bangalore is comparatively better off than Delhi NCR and Mumbai. The main reason for this drop in inventory in the southern city is that a majority of developers got the ticket size right and gave the end users value for their money.


If the mood has brightened a bit it is also on account of investments starting to trickle into Indian real estate. Global real estate consultancy Cushman & Wakefield in a recent report entitled ‘Opportunities for foreign investors in Indian Real Estate’ has reported that the total private equity (PE) investments from foreign funds in Indian real estate increased 33 per cent from $1,676 million in 2014 to $2,220 million in 2015. The three large cities which continued to attract the highest investments in India and accounted for 75 per cent were Mumbai, Delhi-NCR and Bangalore.


The Bangalore based Ozone Group has been a beneficiary of such funding. In October the real estate firm whose offerings range from residential condominiums,  hotels, resorts,  business parks, integrated townships to retail malls announced that it would be raising funds through a mix of private equities and debts to fund its first residential project in Mumbai. A little before that within a span of one year the company had raised more than Rs 1,000 crore from private equity firms such as Piramal Fund Management Pvt. Ltd and Aditya Birla Realty Fund to finance its two township projects in Bangalore and Chennai.


Ozone Group, which has more than 15 million sq. ft under construction, is currently developing a 40-acre township Metrozone in Chennai and is also in the process of delivering the third phase of its 170-acre project located adjacent to the Bangalore International Airport, in North Bangalore. The real estate developer has ambitions to develop 2 crore sq.ft. of space in residential and commercial projects including– townships, IT parks, hospitals, hotels, schools and shopping malls – in four cities across India. The developer recently bagged the mandate to construct a four star hotel in its township, Ozone Urbana in Bangalore.


Ozone Group's key differentiator has been abundant infrastructure in all its projects. It addresses the most basic needs of projects like water, power and security besides providing high-end conveniences and creature comforts. Every project has well designed infrastructure such as wide internal roads, adequate car parks for residents and their visitors, large open green spaces with water features, effective security systems, besides carefully chosen high quality building materials. The company also invests significantly to make its projects environment friendly, through rain water harvesting, solar heating and lighting, waste management and other similar eco-friendly features.

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