Sunday, November 26, 2006

Real estate prices continue to hit the roof

Real estate prices continue to hit the roof
New Indian Express

BANGALORE: Time is money. Time is of the essence. And the time is now, to buy land or house in Bangalore. With the hi-tech city attracting people from all over the country and the world, every square inch of land is coveted, every property is a gold mine.

The city has a number of multi-billion dollar projects in the pipeline like the international airport at Devanahalli, Metro Rail, Bangalore-Mysore Infrastructure Corridor and others.

These developments have only escalated the prices of property in and around the city. Insiders in the real estate industry say the prices of land in the city are inflated by up to 30 per cent. Victor of Beary’s, a premier realtor in the city, said land in the central parts of Bangalore is the most expensive.

‘Property on places like Lavelle Road, Richmond Road, Infantry Road is selling from Rs 12,000 to Rs 15,000 per square foot. Koramangala, Sadashivanagar and some other areas are also expensive, with each square f00t selling anywhere between Rs 7,000 and Rs 15,000.

Sources say land in areas like Koramangala would fetch high pricestoo, but many land records are under litigation. The few properties that have clear records come with exorbitant price tags.

On the other hand, parts of north-east Bangalore are not much in demand. Land in areas ahead of Hennur, Hosur Road and others sell at anything between Rs 700 and Rs 1,200 per square foot, says Victor.

Owners of land along the areas where major infrastructure projects are coming up are literally sitting on gold mines. Devanahalli and land around it are going to be prime land soon. So is land on Bellary Road and Whitefield and Outer Ring Road. The selling rate is between Rs 1,300 and Rs 3,200 per square foot, but is steadily increasing with every passing day.

The realtors estimate the prices to be increasing at 15-25 per cent per annum. Inflation of prices are high too in almost all areas. The feel-good trend might well create a feeling of euphoria in the market. A crash in prices is not likely, at least immediately. For now, the owners have it good. It is a good time to sell. And a good time to buy, before prices increase further.


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