Bengaluru only big Silicon city to see rise in home sales‏

An interesting fact about the metros are that the six metro markets of India namely Mumbai, Pune, Hyderabad, Chennai, NCR and Bengaluru accounts for 70 percent of residential apartment and home sales in India. A study and estimation of sales by a real estate market watcher firm stated in a report that out of these cities the condition in other cities except Bengaluru is such that it is most likely that they will register a 10 percent decrease in sales over last year’s figures. According to the study of the same organization it was estimated that a 4 percent decline can be expected in June with an estimated sale of 2.75 lakh units of sale of residential units but in practice the figures plummeted even more sharper which has really made the market upset. The market watchers and the experts also opine that although a gloomy picture of sales are being forecast but there is a slight optimistic note in the story as well. They have reported that Bengaluru is the only big Indian city with an estimated growth in the sales figures of up to 3 to 5 percent. It can expected that Bengaluru will have a sales of about 60, 000 residential units which was about 57, 000 in 2013 registering a growth of 3 to 5 percent.

Mumbai on the other hand is expected to experience a decline in sales by 10 percent which was projected at an estimated sale of 80, 000 residential units in June. NCR which was projected to plummet by 17 percent is now expected to decline by more than 20 percent.

In most of the cities the real estate market picture was bleak with the realtors expecting the sales to surge upwards as the enquiry was pouring in, in large numbers. The realtors expected the sales to surge upwards as the time between the enquiry and the sale in many cities were noted to decrease which is an indicator of elevation of buyers’ sentiments. This report was quite shocking for the real estate industry and Bengaluru being a stable market always returned 20 percent on investment on a steady basis, as noticed by the real estate market players.

The realtors feel that poor buyer’s sentiments and high prices are the reason for such a situation. Mumbai is witnessing huge price resistance which is evident from the fact that the enquiries have increased in numbers but the conversion of the enquiries to sales are still very poor. NCR is also witnessing similar situations but in Bengaluru things are on the brighter side. The realtors and observers say that in other cities the prices, interest rates and the economy are not in tune with buyer’s assessment of affordability but on the other hand Bengaluru goes ticking on because of affordable price threshold.

Hyderabad also witnesses similar situation due to which many developers are noted to tailor make their high priced apartments made for the higher segment and are catering to the upper middle and the middle segment.

The observers note that Bengaluru users are comfortable in the price range of Rs. 4, 000 – Rs. 6, 500 per sq. ft. in the middle to the premium segment. If the price goes higher than Rs. 6, 500 per sq. ft. the customers are noticed to be resistant.

Should you invest in properties near public places?

Properties overlooking a stadium or in a VIP area has advantages and may be having a good resale value or is worth investing but is it good for staying in such area. Let’s find out.

Malls, stadiums, proximity to VIP areas and railway stations may increase the value of a real estate property. These are actually the infrastructural or communication facilities that enhance the prices of a property. But in reality is it tenable to stay near a stadium or a railway station? Let us see what people’s experiences have to say.

Real estate investors opine that buying an apartment or a property in a well-developed area with all infrastructures around is always beneficial as that keeps the price ticking. This may be the well-established view of the real estate investors but the residents of such places holds a different view altogether. On the contrary the residents feel that such proximity to public utility centers breaches the privacy of a home. Cars parked in numbers, too much of congestion and littered streets can disturb the mental peace of a person and the family as well. Similarly residing in a VIP area may make oneself feel special and privileged but high-end and tight security and frequent road block can be a menace for one’s living.

Apart from all these conflicting opinions there are still a few who says the proximity to malls, railway stations and other infrastructural facilities always saves time for one’s household requirements which is a privilege in itself.

How much privileged are these properties?

The experts of real estate domain and the market watchers and analysts feel that any property close to stadium has 7 to 8 percent extra value while those which are in the VIP area or are near VIP areas are highly priced. But this may not always be true and on the contrary the prices can be lesser than the market rate also if there is a negative impact.

Should we buy such properties?

From an investor’s view point it is always good to buy and invest in such properties but for the end users and the family it can be a bit hazardous. But it all depends on individual preferences and the likes and dislikes of the family.

Few dos and don'ts before one buys a property near public places.

The veterans of the real estate sector and experienced people view that there are few things one must ensure before buying properties close to public places.

• One should ensure that security system is high end and round the clock.
• One should avoid choosing a property on the main road.
• Ensure that the building has a private parking area not open to all.
• It’s advisable to buy apartments in complexes having resident’s welfare society.

Although properties near public places may have its disadvantages, but notwithstanding all this one can’t deny the intrinsic value of a place which is near to public places.