H1B shortage drives up property prices in city

H-1B visas run out, property booms
With Dream Of Going To US Dwindling,Techies Buy Land In Bangalore
Times of India

Bangalore: The news last week about the H-1B visa quota getting exhausted on the very first day of the new year appears to have had an unlikely beneficiary — the property business in Bangalore. With their primary dream of going to the US less likely to be fulfilled now, many of the techies here are trying to fulfil their secondary dream — of owning a house.

“We have seen a distinct increase this week, as much as about 25 per cent, in enquiries and bookings following the H-1B announcement, compared to the week before,” says Jackbastian Nazareth, vice-president (sales & marketing) in Sobha Developers, one of Bangalore’s biggest property developers.

The explanation goes thus: The priority of many techies is to go to the US, and it is when they are there that they take some major decisions in life, including whether they would like to change jobs and stick on in the US. Even if they have no intention to settle in America, they would normally plan to use the extra income they earn there to buy a bigger house in India.

“Now, with their chances of going to the US itself becoming bleak, many are looking at buying property right away, given also the boom in property prices. From our enquiries with people who are booking now, we do get the feeling that this is the driving reason for many,” says Nazareth.
The H-1B visa provides the passage for skilled professionals to work in the US. This year, for the first time, the entire full-year quota of 65,000 visas was filled on the very first day that the allocations opened.

Farooq Mahmood, proprietor of property agency Silverline Realty, also underscores the distinct increase in sales this month. “We have seen a 18 to 20 per cent increase in demand this month, compared to last month. The H-1B phenomenon could well be part of the reason,” he says.