Ever wondered a flat which was just 40 lacs few years back is now being sold at 70 lacs. Specially in cities like Bangalore which is expanding 360 degree wise why real estate prices have increased at alarming rate. Well there is demand & supply curve which plays an important role to control real estate prices. But these days this is also controlled/manipulated to some extent thereby leading to atrocious price rise.
Right from the beginning of his career an IT guy dreamed of owning a beautiful house(villa/flat). After few initial years of his job he somehow managed to accumulate the down payment and finally he was able to fulfill his dream. But soon he realizes his 2nd dream… another house may be a bigger one. And then another house… the 3rd one .. may be purely for an investment purpose. If his bank balances would have permitted he might have materialized his 4th dream and who knows a 5th dream as well. Given that rupee, wrt dollars, has already depreciated by 20-25% in last few quarters NRIs are finding hard time not to buy any property. Believe me, if situation is favorable then Indians are too good in that.
These days you might have noticed that project is in pre-launch state and you won't get flats of your choice. At least not in one go. Builder might try to sell you ground floor/non-vastu compliant units. When a project is launched they generally get into tie up modes with big real estate agents. These guys in-turn block some of the flat units at launch price which will pretend some manipulated hyped demand. Further with ongoing bookings these guys keep on raising prices.
These days places like Sarjapur, Electronic City, Whitfield(towards Old Madras Road), Kanakpura Road are witnessing new real estate projects which are basically joined venture of builder and land lords/owners. Builder mostly doesn't pay any money to landowners. Rather they are offered number of flats like 5/10/15 or may be more depending on how big their land was. Post construction these landowners will simply put all these flats on rent and will happily wait for 2/3 years or even more if its recession. Unlike builders they usually don't need immediate money to kick start another real estate project.
Investing in a plot and buying a flat are 2 different things which will have their prices going up but the driving force will be different in both the cases. A plot price appreciates because of land scarcity and not because of inflation. Until you've a house constructed on a plot, inflation will never come into picture as you have nothing in place like steel, bricks, cements, etc whose cost will increase due to inflation. But a flat price appreciates mostly because of inflation and to a lower side because of land scarcity as well.
If you have an independent house that too in a gated society then push will be from both inflation as well as land scarcity and put together it'll fetch you very decent price in coming time.
Both of these things goes hand-to-hand. Well just for name sake I mentioned it as "IT" industry. It can be any other industries like pharmaceutical, banking, retail, etc. These days cities are witnessing their expansion and what used to be suburb few years back are considered main downtown areas. Specially cities like Bangalore which doesn't have any geographical limitation is really getting pushed to expand its city limit.
Read out similar blogs related to Bangalore real estate:
- Real estate properties of East Bangalore: Potentials and Development
- Price trend in East Bangalore
- Pruksa silvana: FDI real estate villa/Row houses project in East Bangalore
- Investment in Sarjapur - ORR real estate good option or not?
- Bangalore IT hubs: Electronic City, Whitefield, Marathahalli and Bannerghatta Road undergoes slow real estate sales for 2011
- Points/Factors/Criteria to be considered before purchasing/investing in the real estate property
- Bangalore upcoming areas/suburbs to see real estate appreciation and development
- Sarjapur town/village Real Estate: Scope and development
- Hoskote to be developed as Satellite Town
- Bangalore Intermediate Ring Roads(IRRs) to push residential growth
Get a group discount on a Bangalore based property:
Want to get a group discount on any specific specific property (villa/apartment/plot). Then join this Bangalore buyers group and express your interest in the interested property. In-case you are looking for a property which is not present there then feel free to add that to the list.
Want to get a group discount on any specific specific property (villa/apartment/plot). Then join this Bangalore buyers group and express your interest in the interested property. In-case you are looking for a property which is not present there then feel free to add that to the list.
