RESIDENTIAL PROPERTY MART- ROBUST GROETH                  next news>>

There has been an unprecedented demand for residential property across all micro markets in Bangalore with hard pricing for all categories of properties ,though price have stabilized now , according to market sources . In particular, the demand for independent luxury homes and high end apartments is high ,with gradual rise in disposable income . The market upbeat has lured established developers from cities like New Delhi , Mumbai and pune to enter the city.
The south and eastern part of the city grew fast so far and due to international airport and IT corridor , development is now inching towards west and north . A plethora of amenities ranging from open space , privacy , up market specifications and ultramodern security are the criteria that tilt the balance .

Among the major reasons attributed for the sudden spurt in demand by several sections in the realty sector include migration of people , competitive home loan interest rates , flexible lending norms and fiscal sops.

The homes loan market has been growing at 25 – 30 per cent in Bangalore . According to housing finance company source , 24 000 - 05 in Bangalore . Both HFC and banks disburse home loans on as average RS 650 crores every ,month, according to a senior executive loan size in the urban areas is RS 10 RS 15 Lakhs and in the rural areas it ranges from RS 6 lakh RS 7 lakh . High value loans account for 10 – 15 per cent overall home market . The average loan size for high end apartment is RS 20 lakh - 50 Lakh . Incidentally , there is a strong demand for home loans in the region of RS 1 crore and above as well . A majority of homebuyers is hailing from the IT sector which has played a key role in pushing the demand up in Bangalore , feels Pradeep Ranka , director ,Ranka group.

Due to spurt in land price by at least 60 per cent in the last 18 months , there has been a home buying exercise dearer . With the result , apartment price are up by 10 – 15 per cent across all micro markets in the last six months alone . In fact the price resistance for apartment above RS 40 L is visible , feels Prasad vijayapuran of Nakshbatraa sales marketing . One alternative option is to go for township project in suburbs if adequate infrastructure facility is in place , He added , At least four township project are under progress with new joint venture Keppel purvankar lunching its maiden condominium project in JP nagar.

The real estate developers revolvers around south Bangalore and white field whereas it is said to be speculative in north Bangalore . unlike earlier, the demand for housing for housing is believed to be driven predominantly end user rather than speculative investors . The influx of existing companies and the expansion of existing companies are instrumental in driving the demand for residential property in and around Bangalore , say housing fiancé source too . On an average one software or hardware company is being founed in Bangalore every day , according to BDA commissioner MN Vidayashankar. With the increase in supply level , the difference in apartment price between CBD project and suburbs is becoming narrower , says Hemang in apartment Rawal , managing director , samruddhi Realty pvt Ltd . Today the cheapest option for a two bed room apartment is priced at RS 20 L.

In suburbs demand is equally encouraging with the shopping malls under various stages if construction , homebuyers can get their options within 2 km radius . However , with the increase in supply level , realtors feel that there the market source are any indication , then between January and July this year apartment price zoomed by 20 – 25 per cent . “ Residential property price have gone up marginally in the last six months . With the increase in supply , price have now stabilized except in areas like white field , Devanahalli and Bannergatta road , says M Natesh , deputy general manager , marketing skyline construction and housing pvt Ltd.

Apartment price range from RS 3, 500 to RS 4000 per sft in the CBD areas , RS 3000 - RS 3500 per sft in cooks town and Fraster town , RS 3000 - RS 3500 per sft in Kormanagala , Indirnagar , and in the peripheral areas RS 2,200 - 2,600 per sf.

AREAS UNDERGOING DEVELOPMENT

Among areas undergoing real estate development specific mention must be made about Mysore road Sarjpura road belt, satellite township are being planned in areas like Nelmanagala, Accrording to market source, 6 developers put together are building a stock of 15 000 apartment . Realtors caution new entrants to take note of impending supply level before venturing into new project.

DEMAND FOR SITES UP

The demand for developed sites allotted by BDA and private sector is also growing with investors reaping rich dividend.

BAN ON PROPERTY REGISTRATION

The government of Karnataka had issued an order on 23 rd April 2005 banning the Registration of certain properties thus bringing the registration of over 80 per cent of the properties , particularly in Bangalore , to a grinding halt . Though the government had maintained that the ban was imposed to prevent land grabbing by developers , the untimely move came in for sharp criticism as no conversionof agricultural land for nonagricultural purpose was putting genuine land sellers and buyers in to severe hard ship . The government will issue a fresh set of guidelines regarding earmarking place where the ban can be withdrawn , it is said.

While the property market is virtually perplexed with the sudden twist in the market , there are other who fell that the government should in fact encourage land purchase by people . ‘This will lead to development when people are encouraged to move out of the city thereby decongesting the city in the long run , feels R Balaji , Chief operating officer , shriram propcare India Pvt Ltd.

Even people who had bough the units earlier are put into lot of inconvenience , say realtors . those who could not register the units complain that registors are even refusing to endorse the non – registration when requested to do so as a matter of record to convince the clients . For instance, gift deeds of immovable property are also not registered if not approved by the BDA . The registration authorities are tight lipped and do not want to comment on the issue . While this may have detreed dubious transaction, it is unfortunate that genuine transaction are also held up dampening the enthusiasm of the investors keen to enter the market , feel lawyers and realtors.

WHITE FIELD LURES HOME BUYERS

Among the areas fast catching up with investors , specific mention must be made about white field where leading developers have already marked their presence. Besides established veterans in white field like chaithanya projects and Adarsh , others who have recently entered with large scale project include Sobha, Prestige and Brigade group . While most of them are developing apartment project , Sobha is coming up with high end row houses. With the entry of more developers , land is in short supply and price have trebled in the past three years . Land price hovering between RS 300 and RS 500per sft during 2003 are now Apartment price are quoted at RS 1850 RS 2200 per sft where hifh end homes range from RS 80 L to RS 2 crore

EXPATRIATES DEMAND UP

The demand from expatriates is on the rise but they are area specific and availability of amenities . The spurt in the number of MNC entering Bangalore and the resultant increase in the demand from expatriates for quality has led to a new wave of demand . The preferred residential areas area Lavelle road , Richmond road and white field . ‘ Though independent villas their first choice, apartments with amenities like swimming pool and gym comes in next for occupations and they do not hesitate to commute to suburbs in search of better commotions and tranquility, says Sujath , regional manager , global Adjustments , affirm that focus on expatriates housing requirements .Rentals range from RS 75 000 to RS 1.5 L per month for a 3 bhk furnished apartment , she added.

OUT LOOK

The demand for all categories of residential property continues to be consistent the upbeat among property developers is any indications. However , with increase in supply level and fierce competition brewing up among various property , there will be pressure on price, while value addition will be resorted to thwart competition, market source do not rule out the possibility of amino correction to price in the coming month .

- V. NAGARAJAN