real estate- March 08

South, Bangalore’s real estate market is witnessing a period of correction and has already dropped by 15% this year. But real estate brokers recommend waiting for another few months in order to cash in on a further drop in prices that is expected. “In another two-three months, prices will fall by another 20% or so. Though prices in the central regions of the city, in a radius of 5 km from MG Road, will only rise, areas like Whitefield, Kanakapura, Marathahalli, and Sarjapur Road will see a sharp drop in apartment prices,” says Feroze Abdulla, MD, Feroze’s Estate Agency. “There has been a 40% drop in sales recorded in the sub-registrar offices in peripheral areas of the city. The reason is that supply has outstripped demand and the unrealistic prices being quoted by developers,” he adds.
The going rates in the areas mentioned above would be between Rs 3,500 and 5,000/ sq ft. Rentals for a three-bedroom apartment in Whitefield and Marthahalli will be between Rs 10,000 and 15,000. However, with the opening of the new Bengaluru International Airport in north Bangalore, people are seen gravitating towards that direction, when traditionally most of the real estate activity was seen in the south and east of the city. Says Nitesh Shetty, MD of property development company Nitesh Estates, “There is a large section of people that is seen investing in a second home and is keen on securing a fixed monthly rental or investing to earn a good return on appreciation.”