Few takers for vacant property here

Few takers for vacant property here
Despite Reduced Rates After Closure Of HAL Airport, Flats Lie Vacant
TIMES NEWS NETWORK

Bangalore: It’s been over two months since the new airport opened at Devanahalli. However, reduction in congestion on the old Airport Road and the relative quiet don’t seem to have helped property owners.
A number of flats and houses in areas like HAL II Stage, Murugeshpalya, Bimanagar, Doopanahalli and Thippasandra have been vacated by people and companies associated with the airport (including cargo companies), but few have found new occupants. This has resulted in a drop in property rates.
HAL II Stage Residents’ Welfare Association president Chandra Reddy says property rates have come down by at least Rs 500 to Rs 1,000 per sq ft. A typical 30 ft x 40 ft or 60 ft x 40 ft site, that once cost Rs 8,000 per sq ft, is now valued at Rs 7,000 per sq ft, he says. Even rental rates have dropped. “A twobedroom apartment going for Rs 15,000 earlier is now available for Rs 12,000,” Reddy says.
But despite the fall, there aren’t too many takers for these flats. Land value in places like Kasturinagar and Murugeshpalya has also come down by nearly 20%, says K R Ravi Chandran, proprietor of an interior decoration company. He thinks it’s partly because of the airport shift. Factors like rise in bank interest rates and fall in demand are other factors pulling down the rates.
Some fear the airport shift will isolate the area from infrastructure development projects, contributing to a longer-term price drop. However, A Balakrishna Hegde, president, CREDAI, said the current trend shows a dip in investor component, but with no decrease in actual user component. “One cannot be sure about the trends in the near future. Currently, more than calling it a decrease or increase, it will be more appropriate to say people are waiting and watching,” he said, adding this could be the reason why despite fewer number of buyers, property value in most parts of East Bangalore remain high.
Realtors also agree that some owners are not open to bringing down prices much. “I know of two flats for sale in Vigyannagar that come under the old airport zone. Despite no buyers for long, the owners have not compromised on the price and prefer to keep them locked rather than negotiate,” says Lakshmi, a real estate consultant.