Bangalore Property Prices!
Printed From: The Equity Desk
Category: Personal Finance & Lifestyle-Strategies & problems
Forum Name: Personal Finance - Startegies
Forum Discription: Discuss startegies for tax planning, insurance coverage, Retirement planning, Home loans car purchases or any thing that affects personal finance.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1444
Printed Date: 04/May/2025 at 4:06pm
Topic: Bangalore Property Prices!
Posted By: johnnybravo
Subject: Bangalore Property Prices!
Date Posted: 10/Dec/2007 at 11:35pm
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Marathalli, grhhh....its one of those typical sheepish areas on the outskirts of the city which one wants to avoid going (unless forced to go to work!). Marred by Traffic, potholed small main roads and ghati crowd, that's 70% of Marathalli. But it is totally glamorized on the periphery with top companies buying spaces all along the outer-ring road - because this road again connects the East and South parts of b'lore all along the periphery. One noteworthy thing about Marathalli is that it has been rightly or wrongly associated with an area of 'Second's or Factory Outlet stores' being host to a lot of shops (around 1000 sq feet) of Reebok, Nike, Lee etc. But 80% of b'lore wouldn't love to visit Marathalli - only those tech coolies staying closer would. Biyani is an ace land picker, all the stores that I have are extremely well placed from a crowd attraction perspective - I wonder what he saw in Marathahalli! |
Replies:
Posted By: omshivaya
Date Posted: 10/Dec/2007 at 1:02am
Maybe Marathalli is due to get a revamp, who knows?!! If it is so, then land prices around it should zoom. Go buy some decent plot there BGLRians  ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: PrashantS
Date Posted: 10/Dec/2007 at 10:49am
| om ji the whoel area is really expensive not coz staples but coz it is a major IT hub and all top companies are there .Prices are already very high.too much traffic.In a few years the prices will touh the roof.If someone would have bought land there 10 years back at x it is worth 90x . |
Posted By: PrashantS
Date Posted: 10/Dec/2007 at 10:51am
| personally i feel it is a sick area to live in ..still thigns have to improve..Jayanagar is the best i guess...thnx to Hyder ALi for building the lal bagh otherwise ye builders usko bhi nahi chod te. |
Posted By: basant
Date Posted: 10/Dec/2007 at 11:00am
90 times in 10 years this could put equities to shame.  ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: johnnybravo
Date Posted: 10/Dec/2007 at 11:09am
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but that's true. I have heard stories wherein poor old farmers all along the outer-ring road now enjoy evening masti along the numerous bars that have opened in the same area! People have become extremely extremely greedy. A shady 2 BHK there (technically termed as shack) rental comes around 15K with 1.5 Lakh deposit and when you quit *they* refund only 1 Lakh or if u r unlucky then u get much lower! They have seen enough greed, I wish they see Fear sooner. |
Posted By: omshivaya
Date Posted: 10/Dec/2007 at 11:29am
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Prashant jee, Holly Molly :-O ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: luke123
Date Posted: 11/Dec/2007 at 12:21pm
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http://timesofindia.indiatimes.com/Bangalore/Good_time_to_buy_a_house_in_Bangalore/articleshow/2612813.cms - Interesting, there was an article in TOI Bangalore that prices are falling in Bangalore . |
Posted By: deveshkayal
Date Posted: 11/Dec/2007 at 12:25pm
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People who bought flats by home loan two-three years ago are benefitting with the increase in prices after considering Prinicipal+Interest amount ! ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: Ajaya
Date Posted: 11/Dec/2007 at 12:29pm
Tushar I have no idea where you are living.But as some of the comments you made I don't agree.I have lived near that place for close to 5 years before leaving b'lore in Sept 2007.The location is excelent as per staple due to the following reason.
* Mostely IT crowd live there as that is the centeral location to go to any IT companies in any part of b'lore.Most IT ppl prefer to buy apartment in that location as that is central location .If they change job then also some other place will be same distance to them.Lot of apartmets are there in that ring road along with some posh row houses.You will find mostly apartment in both sides of ring road. You have multiplex is there nearby.
* IT coolies mostly prefer to go to big retail shop then the localites or govt coolies. This is my observation.
* In that location there are very few kirana stores.For many things you need to go little distance.
*Near by you have brand factory.The crowd you see in Brand factory is as if they are selling everything in free.
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Posted By: Ajith
Date Posted: 11/Dec/2007 at 1:01pm
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Bangalore has a' research' background basically and so it will continue to attract high tech companies.But the centre of Bangaore is increasingly becoming unattractive due to pollution (I visit once or twice a year and stay with relatives near Hotel Leela,Airport Road ;Martahally is a few kms away from there-its less congested). Outskirts-new areas, may be the best bet. ------------- Ajith |
Posted By: johnnybravo
Date Posted: 11/Dec/2007 at 2:22pm
 Well how can you have any idea of where did I live !!* The impression i gave was of 2005 but as I said (and also u did), Marathalli was/is better along the peripheral outer ring road only. I might spark off a debate here, and somebody might get offended....but seriously, without any prejudice, quality of houses/apartments in Pune is much much better - just an observation. Shhh...please don't expose Pune's roads for God's sake. Anyways, lets trust Biyani, who might know more than u and definitely more than me about the location - and who cares whether techies live in shacks or castles as long as they visit staples |
Posted By: luke123
Date Posted: 11/Dec/2007 at 4:15pm
| You wouldn't recognize Marathalli of today if you are talking about 2005.. |
Posted By: kulman
Date Posted: 11/Dec/2007 at 4:17pm
Roads???? woh kya hota hain? ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Ajith
Date Posted: 11/Dec/2007 at 5:06pm
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Luke, I was mistakenly talking about the sleepy Maratahalli of 2003.(last visit) Thats typical surprise story about outskirts.Koramangala is another. ------------- Ajith |
Posted By: johnnybravo
Date Posted: 11/Dec/2007 at 5:12pm
 Did u really mean research??? U said research or re-search? Well B'lore needs to re-search a chief minister for sure! |
Posted By: kulman
Date Posted: 11/Dec/2007 at 5:17pm
R&D???? all-over India doesn't it actually mean Relax & Duplicate??
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Ajith
Date Posted: 11/Dec/2007 at 5:18pm
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What I meant is that there are many old research institutions in Bangalore which is the fundamental reason for it becoming the tech capital or so I have come to understand from my reading.
------------- Ajith |
Posted By: johnnybravo
Date Posted: 11/Dec/2007 at 5:32pm
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all one needs is a soul search - baki 'saab moh maya hai'! |
Posted By: Ajaya
Date Posted: 11/Dec/2007 at 12:29pm
Nothing personal..
You sounded(in ur previous comment) like you live in bangalore from long time as if You know the place in & out.
But ppl for the sake of giving any comments talk whatever they have seen in past that to 2-4 years past.The place is not a outskirt anymore.
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Posted By: omshivaya
Date Posted: 11/Dec/2007 at 10:41am
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It seems the Bangalore real estate bubble has burst. The city, which saw some unrealistic rise in property prices in the past few years, has witnessed a sharp drop this year. A survey conducted by a real estate firm corroborates this. Real estate company Asipac states that property prices in the city have dropped by at least 10 to 20 per cent in the past one year. In areas like Sarjapur, where the concentration of IT firms is heavy, prices have come down by 20 per cent, while in posh localities like Jayanagar and JP Nagar, there has been a 15 per cent fall. So what has led to a dent in property prices in the IT capital of India? Experts hold that property in Bangalore always had a 'fake' -- or inflated -- price. It soared because of the hype around the IT boom in the city. Prestige Group chairman and managing director Irfan Razack feels that property prices in Bangalore were at an unrealistic high so far. That led to a demand-supply mismatch as a result of which at least 5,000 apartments lie vacant today. Dealers, who used to sell at least 60 flats in a quarter, can now sell just six.
One can compare the Bangalore scenario to that of Mangalore as it was a couple of years back when the Mangalore Refineries and Petrochemicals was set up. Big money was being paid to the the refinery employees then and taking cue from this, realtors hiked property prices. The case of Bangalore is no different. The advent of IT industry to the city led to a huge rise in realty prices. Sky high prices started getting quoted just because IT personnel could afford it. Result: non-IT people too had to cough up these higher rates.
Builders in Bangalore find it difficult to dispose of the apartments these days and hence are incurring huge losses. They are, therefore, reducing the prices to draw customers. High property prices in the best planned areas of the city -- like Jayanagar and J P Nagar -- forced prospective buyers to opt for less expensive areas, like R T Nagar, Sultanpalya and Kamanhalli. It is said that the demand for land or a house in Jayanagar and J P Nagar went down by at least 40 per cent. Realtors in the area, were in turn compelled to reduce prices. According to the builders of Bangalore, realtors are to blame for the price debacle. After a building is constructed, the builder sells it to the realtor, who in turn disposes of the property at a price of his choice. The realtors, who have their own network (a very strong one), are the ones who decide the price. To sum up, there cannot be a better time to invest in Bangalore. Source: http://www.rediff.com/money/2007/dec/12bang.htm - http://www.rediff.com/money/2007/dec/12bang.htm
My note: If someone thinks he is OVERSMART ad quotes you Rs. 5000 per sq. ft., then he is creaming you. Demand at most Rs. 2000 per sq. ft as that is what it deserves else DUMP it on the well wisher's FACE! ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
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Posted By: xbox
Date Posted: 11/Dec/2007 at 10:44am
------------- Don't bet on pig after all bull & bear in circle. |
Posted By: omshivaya
Date Posted: 11/Dec/2007 at 10:49am
Naah, settle for 2000 bucks. See my edited message above X-box jee 
------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: johnnybravo
Date Posted: 12/Dec/2007 at 1:11pm
Good, but not surprising. Demand for B'lore was piggybacking the IT wave and all people thought was that this will continue to eternity. The whole game boils down to who creates the demand - all b'lore had was a pseudo demand - that IT mints money in $'s. I recently had a word with a builder in Pune - he got a small chunk of land in Hadapsar just becoz Microsoft cornered a huge pie. Now if prices fall, microsoft can afford to wait, who will help this guy?? And Msft can book that in 1 day - I remember the 2001 days, when Lucent in Kormangala was shunted to 1/5 of its office size (the rest was taken up by Big Bazaar latter!) Cyberabad, Pune will follow B'lore to way down as they did on the way up. 5000 flats vacant - that a conservative number with 11 floored towers these days, 5000 is no number. |
Posted By: Ajith
Date Posted: 12/Dec/2007 at 1:39pm
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I knew the bubble in Bangalore was going to burst all along not because of any great insight but the pattern was bound to repeat-the great fall of 1995-96 which I experienced. ------------- Ajith |
Posted By: omshivaya
Date Posted: 12/Dec/2007 at 1:56pm
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Let the 5000 per square foot come to 2000 per square foot, and only then start thinking of buying. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: Mr. V
Date Posted: 12/Dec/2007 at 8:15pm
Can you elaborate on the 95-96 crash ? How big was the fall and what were the triggers ?
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Posted By: Buffet
Date Posted: 12/Dec/2007 at 9:21pm
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This could be predicted easily with a simple "back of the hand" calculation.
1. 85% of the apt sales are to salaried class in IT/BPO sector. Hence there is less scope for black money transactions as opposed to Mumbai/Delhi. This poses a limit to which prices can be afforded. 2. 25000 new apts will be in market by next year-end with an average price of 50 lacs. (Better ones at 75-85 lacs) 3. 90% of all apts are bought on home loans. A 50 lac apt will mean about 40-50k per month EMI at current interest rates. They should have a take home income of atleast 80k considering the rent(8-20k) they may be paying. To take 80k per month home, the annual pay must be atleast 15 lacs. 4. Of the 2 lac IT/BPO employees in Blore, only about 15% will have such pay. That is 30000 people. Of which atleast half are already decently settled and another 5-10000 people are waiting for their apt completion to move in. 5. That leaves another 5-10000 propective customers at the maximum. This cannot change drastically in one year. 6. Clearly there is a demand-supply gap in favour of the latter One more thing, about 50% of the buyers are NRIs whose pay have come down (relative to INR) over the last one year due to currency appreciation. Interest rates in US also hurting for those who have invested there. |
Posted By: kishanpv
Date Posted: 12/Dec/2007 at 9:58pm
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hmm thanks for that buffet ji. Also, Ajitji your inputs on the experience will help a lot. I'm planning to buy a roof for my self but i find it even harder as i dont fall in the 80k per month bracket ;) Await your experience
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Posted By: Ajith
Date Posted: 12/Dec/2007 at 10:03pm
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Mr. V, My experience was not directly in the property market but my tracking the listed company-SI Property Development Ltd. The boom in property prices had been largely speculator-driven and India's economy was not so sound.An insider told me that he knew the boom was fizzling out when the same number of buyers came to his office to buy flats but fewer transactions actually took place. SI Property collapsed as they had been too aggressive in their bid to dominate the market. SI Property missed out on a chance to dominate the market-achieve a market cap of Rs.10000 crores- if they had just survived.Purvankara was very small in 1995 but they survived and thats important. ------------- Ajith |
Posted By: basant
Date Posted: 12/Dec/2007 at 10:52pm
Pearls of wisdom. I would subsititute the names of the property stocks with investor A and Investor B. At the end of this bull market Investor B would be in a small minority. Guys, any one of us could be Investoir A. It is very very important to preserve wealth and not to blow up what we have made in the quest for more.
Bull markets make all of us look very smart but it is the bear market that is a test of our smartness, bull markets are like an open book test in school.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: PrashantS
Date Posted: 12/Dec/2007 at 11:42pm
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Bangalore is getting crazy land valuation....dont know if it is coz of IT and BPOs ..it is like people are poring money on property.Guys like Purvankara are really demanding some premium.75 lakhs for flats my goodness .These days lakhs are nothing .Can the middle class afford it only time will tell. |
Posted By: kulman
Date Posted: 12/Dec/2007 at 11:46pm
That's a nice little reminder.
But Sir Jee even in this Bull Market many day-trading Mungerilals are unable to pass the tests inspite of it being a open book....the reason is that they carry the wrong book each day.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: PrashantK
Date Posted: 12/Dec/2007 at 11:57pm
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Posted By: manishdave
Date Posted: 12/Dec/2007 at 12:25pm
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surprisingly nobody talked about Mumbai. I read somewhere a flat was sold for 34Cr with no commercial value. 6 Acres of land went for 2700Cr. Lacs has not value? I see even Crs has no value here.
Basat wrote somehwere "What happened in West Will happen to India".
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Posted By: PrashantS
Date Posted: 12/Dec/2007 at 1:13am
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people are borrowing more than they can afford... but the problem is people are pumping money form outside ...that is the NRIs ..couple of my cousins bought 2 houses each ..yes two ..but in way they are doing the right thing right now coz if the $ goes to 35 bucks INR they are gaining a lot....may be we shud have a section to talk about property and people across he country and TEDs can share their view about the property around them.BUy sell or hold the property btw Mumbai is expensive...they talk only in Khoka...no petis |
Posted By: deveshkayal
Date Posted: 12/Dec/2007 at 9:16am
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surprisingly nobody talked about Mumbai
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Hardly any space left with good infrastructure. So you will keep hearing about new records being made every now and then. Govt.'s move to repeal ULCA will not affect prices. Even outskirts places like Navi Mumbai where residential prices are as high as 1.5cr. Pune prices are shooting bcoz of proximity thanks to Expressway. It makes sense to live in Rent in Mumbai. ------------- "You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett |
Posted By: Brittany
Date Posted: 28/Jul/2008 at 8:55pm
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Hopefully you can help with my question regarding real estate. I would like to invest my money into some property in India but have unfortunately no clue of the market. All I could find about http://www.indiaventure.co.uk/ - property in India is this and I have no idea if the site is trustworthy or not. So if anyone could recommend some books or sites I should have a look on, I would be more than thankful.
------------- The world is a book and those who don't travel read only a page. |
Posted By: smartcat
Date Posted: 29/Jul/2008 at 12:12pm
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Brittany, are you an Indian national or have friends/relatives in India who can "keep an eye" on your real estate investment in India? Investing in real estate in India is not the same as real estate investing in USA or UK.
I would recommend that you invest in real estate mutual funds - they will be launched soon. Do a google search for 'Real Estate Mutual Fund India'.
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Posted By: Invest_in_India
Date Posted: 29/Jul/2008 at 1:18pm
Hi Brittany, You can have a look at this website for all new & comin up real estate residential projects in India : http://www.axiomestates.com/axiom/index.php - http://www.axiomestates.com/axiom/index.php This website also quote total price of the property with all the features and other stuff. If you like any of the project from there then I would recommend you to contact the builder directly for the latest & real price( per sqft). Get their contact email id and send your query to them directly. Obviously you can always negotiate with the builder. I would suggest you to buy directly from the builder rather than from any third party . ------------- Cheers, Raj "Que sera, sera, Whatever will be, will be; The future's not ours to see. Que sera, sera, What will be, will be. Que Sera, Sera!" |
Posted By: tigerz_style
Date Posted: 29/Jul/2008 at 1:43pm
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Also a suggestion make sure you do negotiate well just like we Indians do .
And if you are going for any of these Ansals,DLF's,Parsavnath's they give heavy discount if you can get booking all together with a group of people
We have tried this in our company where Ansals gave us a heavy discount for 10 people when we went together.
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Posted By: Brittany
Date Posted: 19/Aug/2008 at 4:44pm
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Thank you all for the advice, I'll let you know how it all went.
------------- The world is a book and those who don't travel read only a page. |