Bangalore Apartment prices falling down drastically...

[mybdaprop]

All Apartment builders are struggling in bangalore...

There is a big cash crunch in bangalore and India.. No builders having hard cash to sustain ... they want to sell their ready to occupy flats, so that they will get money to complete their upcoming projects..

RBI has given strict instractions to recover loan from builders and not to allow them any grace period or to issue further loan before they pack back old Loan...

And People are becoming Intelligent and stopped buying junk apartments in junk areas at hefty prices... eg: what is the Return on Investment for you if you buy a 60 Lakh Apartment...

The ROI is only you get some praising by your relatives n friends for a day or two.. but reality is you cant get rent more than 15K for 60 Lakh apartment anywhwere in bangalore.. and you will end up in loan trap and start paying hefty intrest for a deprecating building value...


Even all big builders are tieing up illegally with banks like Axis bank, HDFC, CITI bank to get loan for buyers even if they lack some of the important documents..

IF you want to do reality check ask them if they can provide loan in NAtionilised bank like SBI, they will be doumb folded...

=============================================================================================================

Builders are not here to do any social service by building home... they are here for one and only reason to make money by exploiting our innocence...

Cost of Construction by any builder to build 100 sft apartment building is only one lakh..

eg: The cost price for constructing 1500 sfft apartment is only MAximum 15 Lakhs... and they are looting public money..

Income tax department is sleeping and not hitting nail on these junk builders head..


In all these apartments there is no water they directly relay on tanker water... and the price of water tanker has already touched Rs 800 per tanker...

All must know that what ever builders collect charge for BWSSB cauvery water connection is fake... as per rules.. BWSSB is not allowed to give cauvery water connection to apartment which are taller than 4 floors...

One top your EMI + Intrest + no water + junk Location + 40K annual maintenance fee you will be trapped as a Residential Victim in a pigeon hole as life time imprisonment...

=============================================================================================================

Apartment demand is drastically coming down in bangalore... good to see lot of pressure on builders here are examples..

Here are great examples:

Case 1:

Purva highland in Kanakapura Road: The project was completed in 2011 and still 70% of flats are vacant without any buyers... you are seeing Purvanka pleading people to buy their flats in news papers requalrly...

Price quoted for 3bhk 1600 sft is 64 Lakhs , still they are struggling to Sell...


Case 2: Brigade Omega on Kanakapura road next to Turahalli forest... project started but no bookings happening... even these builder targent only NRIs but still no bookings....


Case 3: Salpuria Satwa GreenAge: MAmoth Apartments group immediately next to Silkboard... Project is ready to occupy...they are quoting 2BHK for 68 Lakhs, no sales happening and only 20% of flats sold .. rest 80% laying vacant and not able to attract buyers...

Case 4: Mantri Alpine: in BSK 5th stage a group of 1110 apartments and Mantri not able to sell it... only 15% of apartments are sold.. rest all laying vacant..., you are seeing lots of ads by mantri and requesting people to buy.. but all in vain... price quoted is Rs 4000/sft..


CAse 5: SNN Builders they are stuggling to sell their apartments in begur road and they dont have money to complete project and giving two page big adertisements in all popular news papers.. no buyers.. and those who have already bought are trapped as construction is very much delayed due to lack of approvals...

There are hundreds of examples in all corners of bangalore.....

Stop buying properties at hefty price.. and have fun builders strugging to complete their projects and come up with huge discounts to survive... All the best....

Note: this thread is offcourse for people who work hard to earn money and dont want to waste it on making builder rich and get themselves in a pooor financial web...

[kartikraman]

Congratulations on this Detailed post.
I agree with all you said. I am a vivid listner of radio and All the channels I listen on FM have more than 90% adds Related to Apartment more than 12hrs a day. I am sure these builders with their inflated or rather Bloated prices are struggling to keep up the demand. I reality more of these promise some lifestyle which Probable we do not even need. Recently I heard of one such add promises egyptian lifestyle.. Whoa.. why would I even think of living a life which is not related to me.....
Open times of India on any day and find more than 50 % space occupied with Apartment advertisements.Crazy !!!!!!!

[yashmys]

Hi,

Case 3: Salpuria Satwa GreenAge - I think the information provided is not correct. The project is being executed in various phases. The first phase is completed and people have moved in. He is advertising for further stages which are under construction or going to be constructed.

All the completed blocks have been sold out.

Thanks,
Yash

[mybdaprop]

CAse 3: In Salpuria Satwa Greenage "Two towers Alpine and Brich" are ready to move in phase one out of 9 towers at a price tag of 5600 sqft onwards... but no occupants nor buyers and lot of flats empty... you can check in satwa greenage website thy have a live chat to confirm lotsssss of availability...

[mybdaprop]

people have very short memory and dont really understand why like Taller Apartments...as in case of Prestige Shantinikethan

Prestige Shantinikethan Tower in ITPL road fell down http://www.hindu.com/2008/10/24/stories ... 730100.htm and there was no big noise...

Price of 2BHK before building falling down was 54 Lakhs for 2bhk and after it fell down our intelligent NRI's started booking for flats here and can u imagine now price is around 85 to 90 Lakhs here..

You might have seen big sky scrapeers in forign nations , they actually use Stainless steel pillars and beams to build taller builings not concrete...so all buildings are standing still even after 25 - 30 years..

[jpnagarprop]

Price fall might be because IT market is not stable as of now and lot of comp are laying off. People also getting very greedy, everyone wan't investment to almost double in 2 yrs .

[mybdaprop]

Another indications of big economy cash crunch situation that everyone is wittenessing are

1. Automobile Industry is down with no new buyers.. Car sales are very much down and actually it past 10 years lowest ever sales, many car companies stopped production count..

2. Gold price falling down drastically... today its Rs 2460 per Gram.. and all possibility of getting down to Rs 1800 per gram in near future...

3. Bangalore Rentals are coming down and standing stable at 12 to 15 K mark in top class areas like JAyanagr and its expected to come down to 10 to 11K mark...
and in out skirts, no people you will be able to get for rent..

eg: in Kanakapura road many apartment owners not able to get tenants even after waiting for 6 to 8 months..

4. Tooooo many builders launched their projects in one shot..without any buyers...

[yashmys]

@mybdaprop

Is this real "3. Bangalore Rentals are coming down and standing stable at 12 to 15 K mark for 3BHK in top class areas like JAyanagr and its expected to come down to 10 to 11K mark... "

Thanks,
Yash

[PlotGuy]

If apartment prices are coming down, I don't see it. In fact, the prices have gone up drastically in the last 3 years. I base my information on ads I see in DH as well first hand information from builders.

[msn1270]

My few cents.

1) huge inventory of unoccupied flats are there since 2011. Nothing new in it. But that has not made any change in the prices quoted by developers. All the builders are blaming the Banks for higher Interest and hike in raw material and labour prices. So far they've not shown any interest in reducing the prices. Lot of black money circulates in Real estate & it can sustain the delay in occupation. Builders/Developers have new fundas like International Airport, Metro Connectivity, Kaveri 4th Phase water supply....etc to hold their prices.

2) As such there is not much slowdown in Automobile Industry. Even now overall sales of 1.5 lakhs passenger vehicles happening every month. There are variation in the individual company performances. But the so far drop the industry projecting is only 1-2% which is negligible. This is only a mode of lobby to pressurize the Central government to reduce the excise duty and other tax components. If at all there is a huge slowdown, it should have impacted the steel industry which is the major raw material used in all over automobile sector and reduction of steel prices also. ???!!!!!

3) I don't see any correction in the rentals. Forget about Jayanagar, people are quoting Rs. 15 to 20K for a 3 BHK in Nagarabhavi BDA Complex Area beyond outer ring road. It is silly joke to expect Rs. 12 to 15K in Jayanagar anytime even in the near future. If there are any such vacant homes in the posh jayanagar, please share me the info, I would like to relocate immediately.

4) During 2009-10 when BSK 6th Stage Prices were quoted Around Rs. 1,500 to 2,000. Same properties are quoted in the range of Rs. 3,500 to Rs. 4,300/sq.ft. Similarly during the same period, in SMV Layout It was Rs. 1,500 average. Today it was jacked upto Rs. 4,500. Even the Duplex houses built on a 20X30 EWS Site are quoted around Rs. 80 Lakhs today, which were selling at around 35 lakhs 3 years Back.

4) Gold prices is totally a different scenario. Prices were highly jacked up by the speculators and the bulk investors from US and Europe invested on the Gold bars as a safe bet as the US economy was not stable. We don't see any difference in US or Europe Economy now also. Hence Investors are bit relaxed and exploring new markets for their investment and hence liquidating their investments. We can expect some more reduction in Gold Prices. Interestingly just b'cos of Rs. 2k redution, already 35% sales increased in the retail jewellery transaction in the last one month. This will again balances the demand.

5) Even the crude petroleum was quoted around USD 70 during the last recession after reaching the historic USD135. Now it has not come down below USD 100 in spite of emergency stock release from US dept of Energy last year and normalisation of supply from Iraq and Libya & as such None of the OPEC countries have reduced their production.

Pals,

Live in reality. Speculations doesn't work every time. All these theories came out even during 2008 to 2010 slowdown also. We saw a moderation of only around 10-15% in the reality prices. Now also, If at all any changes, you would like to see in reality, it will be only a moderation based on the areas specific features. Don't expect any Bubble Crash in Indian Reality at least in the next 5 years similar to western countries.