Bangalore real estate prices to increase in the coming quarter
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The steady pricing that Bangalore real estate has maintained so far is expected to change. The Bangalore real estate market is expected to shoot up from the next quarter, beginning September. One major reason contributing to this is the increase in cement and steel prices in the last couple of months.
“We are faced with a situation today where the price of products like cement and steel are increasing steadily. And in the future, these prices are expected to grow further, thus increasing the investment of developers to such an extent that it is no more possible to sustain the current rates in Bangalore anymore,’’ remarked R. Nagaraj, President, CREDAI-Bengaluru.
Speaking at the launch of the CREDAI BENGALURU REALTY EXPO 2012, to , he further elaborated, “Bangalore developers have held the same price line for over a year now, these are no longer sustainable in the future. We expect these prices to appreciate by about 15 to 20 per cent around September-October.’’
Two other influencing factors likely to contribute to the increase in real estate pricing include the increase in expat purchases and the mind-set of the average Bangalorean.
“Expats find the price-points extremely affordable and a more reliable place to dock their money as Bangalore has a relatively clear set of guidelines for apartment complexes and independent houses, as compared to certain other upcoming metros,’’ observed Nagaraj. “Given the global economic scenario a number of Indians have comeback home and prefer to settle in Bangalore due to work-related reasons. This factor is also a contributor to the expected price rise ’’
With the latter half of the year classified as the `festival season’, developers are hopeful of an increase in real estate growth.
“With the coming of the festival season, considered auspicious, people are likely to invest in real estate. Hence the residential market space is expected to pick up further around mid-September,’’ said Tapan Mandhani, Spokesperson, B H Developers. “This is the time that all those who had put off buying property in the beginning of the year, are likely to loosen their purse strings and go for a buy, targeting property, at least in the outskirts.’’
The areas likely to record increased rates include Electronic City, Whitefied, Koramangala and the Kanakpura road segment.
“Unlike other cities, Bangalore has managed to develop land within about 20 Km of the CBD, on all four directions. This is a major advantage, as end-users have a wide choice to pick from, whether they chose to be in South or in the North or North East of Bangalore,’’ observed Nagaraj.