The Hindu : Karnataka / Bangalore News : ‘Bangalore’s growth can impact economy’

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Saturday, Aug 23, 2008
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‘Bangalore’s growth can impact economy’

Special Correspondent

BANGALORE: Bangalore has emerged one among global cities whose growth can affect the economy of regions beyond it, according to Pamela Hannigan of New York University. Such “competitive cities” can and do affect the economy as a whole, because their growth drivers, the information technology in Bangalore’s case, created a high income workforce, change the demographic profile and lead to geographical spread, she said here on Thursday.

“Bangalore has exceptional potential for planned growth. There could be a temporary demand: supply gap in housing as a fallout of rising prices of cement, steel, timber and other inputs. But the long-term potential for the realty sector’s growth will not be interrupted,” Prof. Hannigan said.

New York University’s Schack Institute of Real Estate, teaches “real estate economics”. She said: “A mass transit system like your metro rail does take time to build.

Prof. Hannigan said the overcrowding and slow traffic in the Central Business District (CBD) was not unique to Bangalore and New York, London and Paris faced similar situations. Some like London, charged £8 on each vehicle that entered the CBD and some other global cities banned traffic altogether.

Ashish Purvankara, director of Purvankara Group, said the demand for higher quality housing, the preference for self contained residential projects and the newer jobs all being offered by the “knowledge industry”.

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