Sky is the limit for property prices in city

Sky is the limit for property prices in city

The Hindu


BANGALORE, JAN. 2. The middle-income families that have been moved into the Garden City are usually dumbstruck with the mounting rentals here. The property rates are soaring, thanks to the IT boom and the mushrooming BPO centres.

P. Madhuri, working in a private firm in the city, shudders while recollecting her experience of house hunting in the city soon after she moved in from Pondicherry. "The rentals in the city have increased exorbitantly after the city became the IT hub. The IT professionals have no hassles in paying so much because their salaries are high. But this has created chaos for the middle-income families who find it extremely difficult.

"It almost becomes a hand-to-mouth existence for us," laments R. Narayanamurthy, whose landlord has increased the rent to keep pace with the existing trend.

"The rent that we used to pay some five years ago was reasonable and we can manage the family.

Now, it has become difficult with a single earning member at home. Bangalore being a city with a high cost of living has made life impossible for the middle income groups," he says.

Prices double

Ask a real estate agent who requested anonymity and he says that real estates and rentals in Indiranagar, Koramangala, Whitefield, Bannerghatta Road and Electronic City have gone up 100 per cent after the surge of IT industries.

The rent and real estate prices are now on par with Mumbai for commercial and residential purposes. For commercial purposes, the real estate prices work up to Rs. 30 to Rs. 40 a sq ft. and with interior fittings it is Rs. 50 to Rs. 55 a sq ft.

High rents

Residential two bedroom houses are available for Rs. 7,000 to Rs. 8,500 a month with car parking facilities and three bedroom at Rs 11,000 to Rs. 13,000.

Initially in 1994-95, the rentals were Rs. 3,000 to Rs. 3,500 for two bedroom houses and not more than Rs. 4,000 to Rs 5,000 for houses with three bedrooms.

The IT professionals usually look out for areas surrounding a radius of 9 km from City Railway Station.

Those on the look out for less rates have no choice but to get to the outskirts of the city —

Yelahanka, Sarjapur Road, Tumkur Road (beyond Peenya) and Bannarghatta Road. The land price in these areas is Rs. 600 to Rs. 1,000 a sq ft.

The rents here range from Rs. 5,000 to Rs. 6,000 for two bedroom and Rs. 7,000 to Rs. 8,000 for three bedroom houses.

Those with car parking and fully furnished interior fittings may demand Rs. 10,000.

Those in need of the so-called "reasonable rents" and a decent quality should travel not less than 15 to 20 km from the city.