Now atleast for some time we can Enjoy the Sweet Home.
Bangalore: It’s not only apartment prices in Bangalore that are falling. Land prices and rentals too are.
Mayank Saksena, VP in Jones Lang LaSalle Meghraj, says land prices in Whitefield have dropped 25-30% in the past six months alone, and about 10% in other parts. “Developers are not keen on picking up land since they think prices will fall,” he says.
One industry observer notes that the two Reliance groups (Mukesh and Anil Ambani) and HDFC together had picked up nearly 100 acres near the Devanahalli airport in January this year at Rs 2.25 crore an acre. “They thought it would hit Rs 3 crore by December. But I know a neighbouring plot that’s today going for Rs 2 crore an acre,” he says.
Mukesh Pradhan, who picked up a second flat (a premium three-bedroom place) on the outer ring road, was hopeful of getting a monthly rental of at least Rs 25,000. But even after months, he has been unsuccessful in finding a tenant to pay that figure.
Hardly surprising, considering there are hundreds of flats lying vacant in what is described by some as “ghost complexes”.
Property consultant Geetha Naresh says a three bedroom villa at a prime residential property that went for Rs 1,30,000 a month last year today fetches just Rs 75,000.
So is it a good time to buy property? Most analysts advise some more waiting. Real estate analyst Ankur Srivastava says some time in 2008 may be a good time to buy. So does Saksena: “It will take 6 months to 1 year for the excess supply to get absorbed.”
Source : TOI