Realty prices on upswing in Karnataka, buoyed by IT demand

News Posted - 2010-04-06

Bangalore: Premium properties in the city have seen no price correction in the first quarter of this year.

Their prices are, in fact, showing a slight upswing, demand being driven by the resurgence of the IT industry in recent months, said leading developers and officials of the Confederation of Real Estate Developers Associations of India (Credai) Karnataka.

“The situation is quite heartening for the realty sector,” said Credai chief executive officer D Srinivasan. “Almost the entire backlog of Credai members’ 18,000 apartments last year has been cleared and promoters have quickened the pace to complete their proposed projects,” he said.

“We estimate that prices in all segments have gone up by 5% to 10% since early this year,” the Credai chief executive officer said. What heartened the developers was the slight upward movement of prices of housing projects in the mid-segment, which had been sluggish for the past two years, the CEO said.

Credai is the apex body for private real estate developers in India. It represents over 5,000 developers through 20 member associations across the country. Credai Karnataka has 135 members of whom 40 are top developers.

Encouraged by the revival in the real estate industry, Credai organised a two-day expo of housing projects in Bangalore. The expo, which concluded on Sunday, had about 15,000 apartments of well-known brands in the affordable, middle and premium categories, Srinivasan said. Bangalore has 350 to 400 builders-developers.

Raghuvinder Singh of Mantri Developers said that Bangalore, contrary to belief, did not suffer from oversupply of residential properties. “It’s not true that oversupply has brought the prices down. We are, if anything, short of housing,” he said.

Singh contended that Bangalore was not hit by recession. “It was more a case of buyers dithering. This psychological barrier has now been crossed.”

source: DNA 5/4/10