Over the last two years or so, real estate prices in most metros have seen a sharp rise, with annual return of 30 per cent being quite common. Though there seems to be some steam left still, some experts predict that prices will either stabilise or fall in 2007.
If you plan to invest in 2007, remember that it is a high-risk game, requiring you to stomach up to a six-year price downturn. Next year, go for long-term bets, basically areas that will surely appreciate in the next 4-5 years courtesy infrastructural developments such as metros, roads, bridges and airports. We map the areas with great prospects for price appreciation in the six metros of Delhi & NCR, Kolkata, Hyderabad, Chennai, Bangalore and Mumbai.
3. BANGALORE
The city's infrastructure is creaking now. But it has big plans to bring it back to its former shape.
Outer Ring Road: Currently, the prices are pegged between Rs 3,500-4,000 per sq ft on the Outer Ring Road, connecting KR Puram to Hosur Road. The prices are expected to rise 15-20%.
Airport: The airport being built in Devanahalli, in the north, is to be completed by March 2008. "The prices there are at Rs 2,000 per sq ft now. A rise to Rs 3,000-4,000 per sq ft is expected in the next two to three years," says Bangalore-based Shivaram Malaka, executive director, Habitat Ventures.
"In strategically-located Hebbal, near Devanahalli, the residential prices are around Rs 3,400-3,500 per sq ft and could go up by 60-70 per cent by 2008, if the developments take place as planned," says Praveen Kumar, vice-president, Trammell Crow Meghraj, Bangalore.
Satellite townships: The government has proposed five satellite townships at Sathanur, Bidadi, Ramanagaram, Solur and Nandagudi. The announcement has pushed up land prices from Rs 4-8 lakh (Rs 400,000-800,000) per acre to Rs 15-20 lakh (Rs 1.5-2 million). Prices in the outer ring, which are Rs 3,500-4,000 per sq ft now will see a hike of 15-20 per cent.
Elevated expressway: It will connect Tumkur Road in the north to Hosur Road in the south. Price of land along the corridor has moved up. The Bengarhatta road, Kanakpura Road and Tumkur Road have already seen an increase in land prices up to 300 per cent in the last two to three years. The prices along Tumkur Road are Rs 2,000 per sq ft on an average.
IT Park: Whitefield became the IT hub after industries moved to other parts of Bangalore. The corridor stretches to Indiranagar, Koramangala and Hosur Road. While the location is witnessing lot of action in terms of development and property prices, the spill of prices is being seen at Hosur Road.
Currently the residential prices at Hosur Road are Rs 2,000-2,500 per sq ft and they will escalate 10-15 per cent next year if the development is steady. "In Whitefield, the prices are between Rs 2,400-2,700 per sq ft and are likely to see a rise of 20-30 per cent next year," says Kumar.
5 comments:
This analysis is more for the selfish interest from the builders.
I can see a stagnation and decline in the Market in Bangalore. By 3rd quarter the prices will see a correction
yes i do agree the price rise is artificial by selfish builders and brokers
The forecast is not true... the prices are already down 10-15% in most places. Further its only gonna go down because of
a) Infrastructure issues
b) Tight credit policies by banks
c) Satelite towns to Bangalore
I agree with you guys...these all analysis is baseless...when there is a huge fear of recession in US which would directly impact markets all over the world and esp the real estate in India, these types of trends can be only predicted by selfish real estate agents and builders...a mass cheating!
Thanks for sharing the information it helps a lot. If your searching for Open plots and Luxury villas for sale in Hyderabad. JJ Infra is the No.1 Real estate company for Investments
Post a Comment