Prices of properties
Prices of Residential
& Commercial properties are set to fall because of unsold flats, sites and
supply of akrama-sakrama properties across Bangalore. Bangalore inventory
(unsold apartments and sites) levels are as high as 25 months. It is to be
noted that the regularization scheme may throw in about 50,000 to 1,00,000
properties into the market and the demand for apartments might slow down, as
many prefer to have independent houses, which could not be constructed due to illegalities.
The ability of the market to cling to current prices is under severe stress, which means price cuts are inevitable.
The prices may fall by 5% to 10 % on the outskirts of the city where many speculative projects have been built.
However, many developers, have maintained that property prices will go northwards because of the enactment of the Land Acquisition Bill and the recent guideline by the central bank to do away with certain home loan schemes, but all is not well as Indian economy is reeling under severe pressure.
The ability of the market to cling to current prices is under severe stress, which means price cuts are inevitable.
The prices may fall by 5% to 10 % on the outskirts of the city where many speculative projects have been built.
However, many developers, have maintained that property prices will go northwards because of the enactment of the Land Acquisition Bill and the recent guideline by the central bank to do away with certain home loan schemes, but all is not well as Indian economy is reeling under severe pressure.
The ROI or
returns from the properties is in the range of -2% to a maximum of 10%.
Residential 2% to 6%.
Commercial 2% to 12%.
Industrial -2% to 5%.
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