Dear land: It’s now Rs 10,000 per sqft

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Dear land: It’s now Rs 10,000 per sqft
City Centre Sees Prices Go Up By 50 Per Cent In Just One Year
The Times of India

Bangalore: Property prices are softening in many parts of Bangalore, but in the city centre, it’s a different story. The continuing demand, combined with a severe shortage of supply of space, has pushed the price of land, and topend flats, to Rs 10,000 a sqft, the first time the city is seeing such levels.

A year ago, the land price in the central business district was about Rs 6,500-7,000/sqft. In other words, an increase of nearly 50% in the last one year. “I’m in the process of closing a land deal in Castle Street for Rs 10,000 a sq ft,” says Sudeep Chandran, partner in Terrafirma Developers. “In Sadashivanagar I know somebody who is quoting Rs 11,000 a sq ft. In the same area, in 2002, I remember I had done a land deal at Rs 1,800 a sq ft.”

Places like Cunningham Crescent, Palace Road, Ulsoor Road, Lavelle Road are all witnessing actual deals or quotes at similar rates.

Farooq Mahmood, managing director of Silverline Realty, says there’s great demand for space in the CBD, but few sellers. “I have an NRI client from the US who is prepared to pay Rs 3 crore for a 3,000 sq ft premium apartment in the city centre (that’s Rs 10,000 a sqft). He’s moving to Bangalore and his kids are studying in a city centre school,” he says.

A lot of the demand is coming from people like these — returning NRIs. But there are also others, including politicians, businessmen and top Indian executives, who are prepared to pay these prices. There is also substantial demand from MNCs for commercial space in the CBD.

The severity of the traffic congestion is one reason why some prefer the CBD to living in a premium gated property in the city periphery. “Besides, many want to be close to places like the Bangalore Club. And the city centre is where the best restaurants and schools are,” says Nitesh Shetty, MD of Nitesh Estates.

Bangalore CBD rates, however, are still way below those in Mumbai’s prime areas. Stock broker Rakesh Jhunjhunwala recently bought a flat in Mumbai’s Malabar Hill for Rs 58,000/sqft. Generally, the rates in locations like Nariman Point and Malabar Hill are in the Rs 30,000-40,000/sqft range. But then, Mumbai is a different story.

Places like Cunningham Crescent, Palace Road, Ulsoor Road, Lavelle Road are witnessing actual deals or quotes at similar rates. A lot of the demand comes from returning NRIs, politicians, businessmen and top Indian executives.