Sunday, November 27, 2005

Land around Arkavathy Layout is hot property

Land around Arkavathy Layout is hot property

The Hindu

The layout is being developed over an area of 2,750 acres in 16 villages

# Prices shot up in 2003 and again at the start of the year
# As BDA layouts have civic facilities the demand is more
# Upward trend in prices is expected to last for some more time

BANGALORE: Land prices around 16 villages where Arkavathy Layout is going to be developed will escalate, say real estate developers.

K. Subramani, chairman of the Builders' Association of India, Karnataka centre, says that prices in the area will definitely go up. The Bangalore Development Authority is charging around Rs. 192 per sq ft in the area while private developers are charging over Rs. 250 per sq ft. "Prices may even go up by 120 per cent in the area. It has become hot property once again," he says.

The 20,000 sites of Arkavathy Layout are being developed over an area of 2,750 acres in 16 villages coming under Yelahanka and K.R. Puram hoblis of Bangalore North taluk and Bangalore East taluk.

Mr. Subramani says the prices in the area shot up in 2003 and again at the start of the year with the prospect of allotments taking place. Once the stay order was issued in May, the price of land came down a bit, around 5 per cent.

Another builder says like all areas surrounding a BDA layout the price of land in these areas will also go up. "It happened in Banashankari and Visvesvaraya Nagar. There is no reason that it will not happen once again," he says.


The builder says the prices are bound to shoot up because every BDA layout will have civic facilities, including parks and grounds. "Because of the presence of these facilities, the land value goes up in surrounding areas. Open spaces and parks have become such a rarity in the city that many people are willing to pay more to be able to be in the vicinity of parks," he adds.

Prathap Reddy of Hanu Reddy Realty also believes that there will be an upward trend in prices that will last for another year-and-a-half.

He says that a lot of real estate developers are looking to develop weekend getaways and villas in these areas. "Real estate developers are looking to build villas with swimming pools and gymnasiums in these areas. That always costs a lot more."

But real estate developer Suresh Hari does not believe that land prices can go up anymore in the city. He says the city has already become too expensive for most people and no one will be willing to buy for higher prices.

"There is no rationale against the current prices so pitching higher prices will not do any good," he says.

Mr. Hari believes that there will be some "desperate" selling of land by some people in the area of Arkavathy Layout.

He says people having small tracts of land between sites acquired by the BDA will be eager to sell it even if the prices are not very high.

"There is not much value for small sites sandwiched between the layout," he says.


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