The housing market: Pop goes the bubble

[sam_m400]

8 months passed from last discussion Nov/Dec 2013 i don;t see any burst or price slide as even panchayat land are being sold at 1000+ to 1300 RS without any development/approvals eg near devanahalli/bidrahalli . BBMP/BDA sites even cannot dream t as price are over 3800/4500 Rs. I have seen recently some DC converted sites where developer is quoting near to 1500 Rs .they are not not eager to sell , if we negotiate for lesser price expecting the price to go up more. It is reality as the same developer quoted 1350 around 2 months now increased to 100 to 200 rs. As long as buyers are there ,i am not sure who are buyers buying at this high price, these developers will sure make use of it.....

[prabhu422p]

I stay in Chandapura.I saw that if developers quote Rs1600/sft negotiable in developing BMRDA layout for released sites when we negotiate they will decrease max Rs50.They say they have customer for 1450 and when we go to purchase again after a week we are only getting waste sites for Rs1500 without negotiating.They say all good sites are sold out.I saw this happening for one of my neighbour in 2 or 3 layouts around chandapura.May be developers are holding or they may be playing some tricks or they have confidence that they can sell for more price.

Thanks
Prabhakar

[PlotGuy]

Honestly, I don't think the builders/sellers are playing tricks. There has been a huge demand for properties because of the huge influx of people into Bangalore. This is true for almost all metro areas in India.

[bangalore_fan]

Property prices are stagnant for properties over 1-1.5 crores. If at all there is a bubble, it will be in premium segment. Property prices in mid/lower segment (30-75 lac range) will always have demand as long as people will have jobs and hence sellers/builders will always will always try to get the maximum returns in those segments.

Real estate bubble cannot be suspected by looking at transactions/prices in low to mid tier property segments since people will continue to have jobs. Hope this clarifies.

[JillMill]

1.5 years have passed since this article came up in Livemint and looking back, there has been absolutely no bubble or slowdown in house / plot prices in Bangalore, as far as I have seen. Looks like the 'bubble' theories do not work in Bangalore and India in general. There is not even a slowdown !!

[nagsbhat]

I beg to disagree - correct me if I am wrong:

In the last one year, lot of properties had freebies like free parking, free club membership etc... Now suddenly, they have started giving discount. This may very well be artificial discount (after increasing giving a discount) I feel this is a sign of some downtrend. Correct me if I am wrong.

[JillMill]

The freebies given the builders will not be more than few lakhs of rupees if you total them. In 2012, a 3 BHK flat costs around 90 lakhs and now it is almost the same. As you rightly said, they increase the base price and give discounts, which is not really a discount. In terms of per sq ft rate, there has been no significant change from 2012 to now, definitely not lower.