The realty bubble has burst in the IT corridors of Dirty and Polluted Bangalore City. I spoke to several Realtors and they have confirmed that residential prices are on a downward swing in Whitefield and areas of Kormangala. Some good locations have seen corrections upto 33% while overall the correction has been around 25%.The Whitefield area presently commands Rs 2500 / SFT against Rs 3,000 / SFT couple of months ago. But why the sudden crash ? Whitefield has been an area of high speculation interest. Around 40% of the homes in Whitefield area were booked by speculators even before construction of the projects had begun. These projects are now completed and ready for occupancy and the early bird owners have to pay the remaining cost and get the registration done which has led them to desperately hunt for BUYERS and to their dismay their are no BUYERS which has led to unload panically at whatever cost they can. No doubt even at Rs 2,500 / SFT the early bird bookies have made Rs 500/ SFT but what is the government doing to curb speculation in real estate ?
Some quoted that the shift in IT companies towards peripheral business districts towards Sarjapur has also led to the decline for properties Whitefield and Earthquake Porn Kormanagla area. "The rentals are likely to rise in Peripheral Business Districts due to easier connectivity and rise of IT companies" said Hamilton , Director of DebenHam Tie Leung.
Real Estate activity is brisk near Devanhalli where the new international airport is coming up. Kankapura road is also seeing lot of activity because of the DeveGowda family factor who are heavily invested in that area. However, the central business district of MG Road, Brigade and Mallya Road which had seen modest increase in 2006 are likely to see an exponential rise in 2007 when UB City opens for business.
With Inputs from Business Standard, 22-Dec-2006.
Tags: Real Estate Bubble, Realty India, Bangalore Real Estate, Bangalore Property Prices
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