Any investment in property in the present quarter is good value for money, says Farook Mahmood, founding president of National Association of Realtors, India (NAR).
“With Bangalore’s down-to-earth pricing right now, buyers need not wait for a better time to invest,” says Mr. Mahmood pointing at peripheral areas that could see a phenomenal rise in the coming years.
However, prices are all set to increase in the next quarter, warns Nagaraj Reddy, president, CREDAI (Karnataka). “The last week has seen steel prices increase by 15 per cent. April saw an increase in all construction material costs, including cement by 6 per cent and sand by 20 per cent, and labour going up by 20 per cent. So the cost of construction will soon be 15 per cent more and the selling price will be nearly 20 per cent more,” he said.
According to CREDAI, the real estate market in Bangalore saw sales of over 45,000 units last year and this fiscal promises a rise of 25-30 per cent increase in sales. “Bangalore offers the best in pricing and proximity parameters compared to any other metro in India,” says Mr. Nagaraj Reddy.
“The average pricing stands at Rs. 7,000 sq ft for luxury; Rs. 4,500 sq ft for mid-level; and Rs. 3,500 sq ft for affordable housing, available in a 20-km radius from the core part of Bangalore, while in the central business district it varies between Rs. 15,000 per sq ft and Rs. 25,000 per sq ft which can be termed the “healthiest market”.
According to global consultants, Cushman & Wakefield, Bangalore saw robust new launches with 16,800 units in Q1 of 2014, recording a 22 per cent increase compared to the 2013 first quarter. Almost all corridors of Bangalore saw a capital value appreciation of 3 per cent to 7 per cent.
“It is a good time to invest in Bangalore provided you invest in the growing corridors as the non-speculative market of end-users here offers a variety of options at reasonable prices,” says Kalpana Murthy, Associate Director, Residential Services, Cushman & Wakefield.
Chandrashekar Hariharan, a green homes builder, puts it differently: “There hasn’t been a stampede in buying in the last quarter as the elections have been one challenge enclosed by an uncertain market. But ironically it has also meant that it is a good time to buy. That has kept some activity on the market. Investment-based buying has been high in the north between Yelahanka and Doddaballapur Road, for they hold the highest prospect of appreciation with prices being 20-30 per cent lower than South Bangalore.”J.C. Sharma of another builder firm says that Bangalore has witnessed radial growth.
Land banks are available in the periphery with development having progressed in a 50-55 km radius around the city.
With realistic land prices in all these pockets, Bangalore’s real estate is truly real.
