Low price hike in cities is an investor’s concern while the end users rejoice

The real estate sector has really girdled up the loin and has reduced the prices of the properties in an attempt to surge demand. Not only that due to factors like unsold inventory, over supply and others the prices in cities are recorded to be stooping lower. The trend watchers say that this decline in prices has pushed investors out of the realty market and this is the time the end users are rejoicing. The prices in few cities have become stagnant and in few other cases the realtors and the builders are offering distress discounts. The investors say that they are unable to come out or exit out of the multiple investments they have done in the properties in the last few years. This is increasing the pain of the investors.

In cities like Mumbai the average surge in residential prices have been of the order of mere 3.3 percent in the year 2015 but in contrast the hike in prices in 2014 was 7 percent. This was pointed out by a study conducted by the global property consultant JLL India. The same situation is noted in the cities where the problems arises in the realty sector like Bengaluru, Chennai and Delhi-NCR which are big investor markets. The report of JLL says that all these markets have witnessed a surge in prices in the range of 2 percent in the last quarter of 2015.

The experts opine that the signs of maturity of any realty market is slow and gradual increase of prices which is somewhat similar to the situation of financial capital markets. The cities of the nation also shows similar kind of situation says the top officials of JLL India. The forecast for the y-o-y increase percentage for the city of Mumbai was 6 to 7 percent for 2015. The forecasted increase for the year 2016 was predicted as 6 percent as well. But the actual increase as says the experts, is expected to be much lesser. In such a situation the investors are not getting much of confidence to invest but it is a great time for the end users opines many. The investors feel on top of it that there is a trend of negative appreciation of properties in the realty market today.

The subject matter experts from Estate Agents Association of India opined that the current realty market does not offer any incentive for investors in the real estate market. The reason is the annual appreciation of properties in the major cities of India is lesser than 5 percent and the yield on lease rental is about 1.5 percent per annum. That is the main reason for the investor’s reluctance in investment in the realty sector. But the association sources opined that there are better instances also which has shown better appreciation percentages like Kolkata, Pune and Hyderabad where the annual hike in prices has been of the range of 5 to 10 percent.

In Mumbai the estimates at the sub market levels reveal that South Central and the Eastern suburbs witnessed an appreciation of 4.3 and 4 percent respectively. The hike in prices in Northern Mumbai was noted to be 3.9 percent and that in the western suburbs was recorded at 3.5 percent. Outside the cities the appreciation noted was in the order of 3 percent. The appreciation noted in Navi Mumbai was in the order of 6 percent.

Looking for larger homes here are few options

Do you dream to live in bigger and a larger super luxury apartment or a home and preferably close to your work place? If that is so we bring you some of the destinations which you can opt for and look for luxury homes as well.

Marathahalli

Marathahalli is a place where echelons of the IT and the ITeS industry stay in luxury apartments or villas. Here, one can get a large unit of 3000 to 6000 square feet but the price level is a bit higher with the majority of the residents being in the young age group. The quality of life being offered in this area is higher and this adds to the value of the place and surges the prices higher than areas like Kanakapura Road or Whitefield.

Kanakpura Road
 

This locality is high on demand as regards to luxury housing and the growth of Namma Metro Phase II has surged the growth of residential segment with more and more builders developing super-luxury apartments. This place has good communication network with Whitefield and Electronic City being equidistant from it. People living in this area are mostly echelons and young CEOs of industries and senior level executives. Properties sized about 2,500 to 4,500 square feet are available which can be availed through local builders as well as from big brands too. The pricing of the apartments are almost the same. 

Mahadevpura

Mahadevpura has an advantage as it is close to Marathahalli and Brookfield and thus has a winning edge over other localities too for the the people who work in adjoining areas. This area provides many super luxury apartments in ready-to-move-in and in under construction stage. One of the shortcomings of the area can be the water supply which is a concern in some of the localities in this area.

In case of scarce water supply one has to depend on water tankers if the building doesn’t have an underground storage tank or the supply is exhausted. Owing to the scare water supply of the area few of the projects in this location are coming up with solutions like rain water harvesting and also with the provision of Cauvery water supply. The realtors caution that buyers have to be cautious about this aspect and should check multiple sources of water in the building.

There are few other localities too where super luxury homes or even larger homes are being constructed. To name few of such areas would be Hennur, Devanahalli and Hebbal but the realtors suggest that  the distance from the office hubs are more and as travelling takes lot of time and energy, one should judge this factor and should take a decision.