Realty News

Bengaluru Real Estate hits a all time high!

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This one time we’re not referring to the iconic superhero, but the prices of homes in the city of Bangalore. Even though real estate markets across the country are getting hammered because of the economic slowdown, rising interest rates, delays in project approvals and piling unsold inventory, Bangalore seems to be totally unaffected by this dark streak and has maintained and increased its prices of property(Much to the dismay of current and to-be wishful Bangalore property purchasers).

The reasons why Bangalore is performing better than other Indian markets are the more reasonable price spikes and better execution of projects. Statistics show us that while residential purchase witnessed a slowdown across major cities, Bangalore has escaped relatively unhurt, and witnessed a drop by just 18 percent. Even within Bangalore, the best performing areas in the city for the residential sector were areas in North Bangalore. These locations saw the highest demand and appreciation during the year. The improved infrastructure in this region, its proximity to Bangalore International Airport Ltd (BIAL) and overall enhanced connectivity helped North Bangalore become a much sought-after residential destination. Because of the infrastructure initiatives in various stages of construction and planning there, including the proposed high-speed rail link, the Hebbal-Yelahanka expressway, the elevated expressway to BIAL and the advent of the monorail, North Bangalore was one of the safest and most lucrative residential property investment bets of 2012. North Bangalore will continue to grow thanks to its massive potential for capital appreciation. Other top emerging destinations through 2012 were Tumkur Road, Vijayanagar and Magadi Road in West Bangalore, with capital value appreciation to around 12-15 percent. This region saw stable demand because of the developing metro line, which will provide enhanced connectivity. Yet another area to start edging its way into the limelight was Kanakapura Road, which has begun seeing the benefits of metro connectivity, the establishment of the NICE Road (the Bangalore-Mysore Infrastructure corridor), the availability of Cauvery water and its affordable price points. For retailers, mall developers and retail space investors, North and East Bangalore are definitely the areas to watch out for. The rapidly developing infrastructure and expanding residential catchments in these locations are reasons of vastly increased retail activity over mid to long term basis. Our sincere advice to small investors is to go for residential projects in which units are priced between Rs 80 lakh and Rs 1 crore as three-BHK units are going to be the fastest-moving and appreciating products in 2013 and beyond.

So, at the moment and in the near future, the stars of fortune have decided to keep shining in Bangalore’s favour. How long this win for Bangalore will last is a question of time and economic factors. The future may hold its ups and downs for Bangalore, but right now it’s just up and more ups

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Soft Launch stage: To invest or not to invest?

Planning to buy an apartment? Confused? Skeptical about that first step?

We won’t be surprised if you answer all the above questions in affirmation. Buying an apartment is unlike buying a fancy gadget, something we are all masters of, thanks to the social media age. But here’s a tip that will help you go a long way when investing in a property- If you are planning to buy an apartment in an under-construction project, investing at an early stage of the project can get you reasonably lower rates but then it comes with risks attached.

There are two stages in which a project is launched:

The soft launch stage: This is the first phase of the launch when the developer opens the booking for brokers and select investors.

The launch stage: The second phase is the formal announcement of the project. This is when the booking opens for the general public.

Searching for a property is definitely one of the most time consuming and risky activities. You start with reading advertisements, then talk to real Estate developers, then read more advertisements, come to a conclusion and then change it again because of 3rd party interventions. In short several weeks pass by before you identify a property. And by the time you approach the builder, you notice increased prices.

So what should you do in such a situation?

They say the early bird catches the worm. Same is the real estate story. You can take advantage of the soft launch stage, when homes are offered at an inaugural discounted price as the developer is in the process of getting approvals. During this stage, the developer tries to sell a certain amount of units in the upcoming project through brokers and investors to raise early money for its projects. At this stage the developer is usually ready to reduce the prices further with higher upfront payment. The only concern with booking in the pre-launch stage is on the project getting delayed because of the delay in getting approvals but if you are an investor and going with a trustworthy brands, this is the best time to get into an under construction project. The logic is that more buyers in the initial stage mean more advances coming in, which in turn facilitates the builder to start the construction of theproject .

Just remember that builders first invite their existing customers in other projects and investors and brokers in the region. In order to become a part of the soft launch phase, you would need to express interest in the property beforehand for the developers to shortlist and invite you.

Stick to a trustworthy brand name, because then you can see their work portfolio of their other projects and have no worries. It’s not that we are suggesting you to invest in property at the early stage. But consider the option. Talk to a good property dealer in the area and ask him to keep you updated on new launches.