Property buyers do a quick rethink

Property buyers do a quick rethink
The Times of India

Bangalore: Just 10 days ago, Krishnan was planning to pick up a flat in HSR Layout with the objective of renting out the property. But after seeing that layout’s woes in the past few days, Krishnan thinks it may make better sense to invest in a property on the way to the upcoming international airport, where the government is likely to be more serious about infrastructure development.

Krishnan is just one among many who are rethinking real estate investment decisions following last week’s deluge. Some of the hottest locations of yesterday no longer look very inviting. And in some of the worstaffected areas, property prices are already moving south.

“People are sure to reconsider, and over time, there will be an impact on property demand and prices in areas like Hosur Road, HSR Layout and Puttenahalli,” says Zahed Mahmood of Silverline Realty.

Mayank Saksena of Trammell Crow Meghraj Property Consultants says buyers are likely to be particularly wary of low-lying areas around lakes. He also thinks buyers and developers will now pay greater attention to the planning and design of a property to protect it from a deluge. “I noticed that in the same location, some basements got flooded, others did not. Obviously, the latter had done a much better job of designing the place,” says Saksena.

Satheesh Kulkarni, south zone head of ICICI Home Loans, makes a similar point: “People have been chasing projects as they thought they could make money on them even in a short period of time. They were bothered only about the property, not about the infrastructure outside. That will change in future,” he says.

Some say the change in mood is a temporary phenomenon that will reverse itself, particularly if infrastructure improvements are put in place in the affected locations. Girish Puravankara, director in Puravankara Projects, says his company is very keen to partner with the government to upgrade the Puttenahalli main road, including the drainage system. The Brigade Group has submitted a proposal to the government to upgrade another road in Puttenahalli. Maybe, if the government acts on such partnership proposals quickly, there could yet be some respite for the affected locations.

Realtors help out

Several property developers appear keen on developing roads and sewerage systems in parts of the affected areas. The Puravankara Group wants to partner with the government to upgrade Puttenahalli main road, including the drainage system.
The Brigade Group has submitted a proposal to the government to upgrade another important road in Puttenahalli.