Land ahoy?

Land ahoy?
New Indian Express

BANGALORE: The abnormal escalation in land values in the city hasn’t adversely affected the real estate business, but has the middle class really worried.

IT and BT proffessionals are still eager to own sites and flats. But the middle class feels the city is beyond its reach, with the only hope being farflung outskirts.

On land developers and real estate businessmen, the new guidance value has had little effect.

Though there were some objections in the initial period, they seem to have died down now.

The city has been the hub of India’s IT business for a long time now. It will soon have an international airport. All these factors have played a critical role in the recent hike in prices.

After the new guidance value came into being, lands on Hosur Road, Mysore Road and Kengeri have seen nearly 100 percent hike in value.

Same is the case with Whitefield and Sarjapur Road. Adding to these difficulties, the registration fee and stamp duty have also seen a steep upward revision.

Now, to buy a land worth Rs 35-45 lakh one has to pay nearly Rs 1 lakh as stamp duty.

According to the land developers, the buyers have accepted the situation quickly.

‘‘Any land investment in Bangalore is worth the money. Whatever happens land rates will not come down,’’ says Ashok, Project Director of Pride Land Developers.

Though middle class investors are the worst-hit, those who are all set to invest won’t go back, he says.

IT professionals of the 25-35 age group are target customers for land developers.

‘‘This had to happen. After Mumbai, Bangalore is the costliest city at least with regard to lands’’ says Prashant, an IT professional.