Buyers say combination of reasons behind no-buy decision by investors, but experts say realtors, who use discount ruse each festive season cause trend
IN the past few years, the real estate market in the city seems to have adopted the stock market mode of functioning what could otherwise explain the price variations every single week?
Even though realtors dished out mouth-watering discounts for residential complexes this Diwali, the idea did not click with buyers in the city
With several projects nearing completion just before the onset of the festive season in the city, many realtors decked up their properties and put completed projects on sale with alluring price tags and discounts.
However, not only has that idea bombed this season, but 'intelligent' buyers have refrained from investing in the market, despite the huge discounts.
Trend setters While many buyers believe that a combination of reasons has led to the no-buy decision, experts attribute this negative trend to realtors, who use this ruse each festive season. "Bangalore realtors are today targeting a set of very intelligent buyers.
These buyers think, analyze, compare and then decide on investing in the real estate market. While many builders did throw many discounts into the market this Dusshera and Diwali, very low sales were recorded.
This is because realtors had jacked up their prices and then offered a small discount to lure buyers," said M Chandrashekhar, chief executive, Eco Pack Real Estate Services.
Buyers not pleased Even though there were discounts in the affordable sector, the idea did not click with buyers in the city. "We were looking at a house in the affordable sector, but nothing pleases us.
We saw almost 30 houses, but nothing caught our attention. The prices are very high, although many builders claim that the prices have fallen - the reality is much different," said Savitha Kumar, a buyer from Sarjapura.
Experts further reveal that the National Housing Bank Enquiry team that visited Bangalore was shocked at the hyped prices.
"The situation is getting bad in the city. A house in Sarjapura, for which buyers were not willing to pay even Rs 1,500/sq ft three years ago is now selling for Rs 3,500/sq ft. Further, areas like Hennur where no one was willing to invest, is today selling at s 4,000/sq ft.
Further, areas within the city limits like Jayanagar and Koramangala, do not have too many takers, although there are sufficient projects there. With the affordable sector itself not doing well, villas and penthouses are a closed market," explained Chandrashekhar.
Based on the current price scenario, houses in Jayanagar are selling at Rs 8,000/sq ft, while the going rate in Sadashivnagar (the best residential area as of now) is Rs 40,000/sq ft. Kumarapark is selling at Rs 20,000/sq ft, while Banashankari, Koramangala and Shankrappa Layout are selling at Rs 10,000/sq ft.
And last but not least, Airport Road is selling at a whopping Rs 68,000/sq ft. "While these are just residential areas, rates in commercial areas have also shot up dramatically, because of which there are very few takers," said Chandrashekhar.
For those planning to invest in the affordable housing segment, experts advise to wait for a few months for prices to decline before taking the plunge.