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Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 1:39 am
by smariner
From the perspective of investment, how is the is current real estate market doing in Bengaluru?
Is it currently a buyer's or a seller's market? What are the prospects of price appreciation over the next ~5 years? Any areas that are likely to appreciate better?
Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 3:35 am
by cmk786
I am not sure what is your country of residence. If you are living in US and trying to buy property in India with the intention of making money expecting the property value will appreciate. You are making in my opinion wrong decision. Because even if the property value goes up but at the same time the dollar value also goes up exponentially which results most of the time at end of the day in a loss. On top of it managing the properties in India because you being in US is very tough. I am telling all this based on my personal experience. If you are in India and want to buy property in Bangalore than it is a different scenario.
Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 7:29 am
by FB2020
cmk786;666366I am not sure what is your country of residence. If you are living in US and trying to buy property in India with the intention of making money expecting the property value will appreciate. You are making in my opinion wrong decision. Because even if the property value goes up but at the same time the dollar value also goes up exponentially which results most of the time at end of the day in a loss. On top of it managing the properties in India because you being in US is very tough. I am telling all this based on my personal experience. If you are in India and want to buy property in Bangalore than it is a different scenario.
would you mind explaining what difficulty did you encounter in managing? Did you give to a property manager, or trying to do it yourself with family/friend's help?
Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 5:20 pm
by cmk786
I was managing it through my sister-in-law.
Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 6:18 pm
by krivan1
Buying in Bangalore is very easy. But selling or renting is very tough in B’lore market especially high end properties. Here are few issues that I want to highlight :
B’lore has many established Tier-I builders (Sobha, Prestige, Brigade etc..) and you would observe launch of mega projects regularly. As a result, it is difficult to find a buyer in secondary market.
Also aggressive advertising, discounts at launch and tie up with home loan entities ensure smooth take off for new projects where as individual once bought, would find mountain to climb to dispose the property.
The sale agreement, payment terms and sale deed are one sided and completely in favor of builder.
I had visited two completed mega luxirious projects where several of the units are occupied from tier-1 builders (Sobha project at Bellandur and Prestige Shanthinikethan @ whitefield) and many of the owners (some of them are NRIs) are finding it difficult to find tenant in the range of 30K to 40K per month. Couple of flats that I know are vacant for the last 6 months. In desperation, they are ready to rent to group of bachelors as well. Had seen many flats are on sale in Prestige Shkthn and hardly there are any buyers. It was the same case in Sobha as well.
Personally it took 3 yrs to dispose off my two mid range flats (1.5 yr each). I had to offer 50% discount and many other concessions to the buyer to get rid of the property. What I finally got inclusive of rent was akin to bank FD rate.
Advice : You can buy for personal living. Property will be destroyed if you rent it. Don’t buy for renting and investment purpose.
Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 8:44 pm
by Old-Spice2
krivan1;666384The sale agreement, payment terms and sale deed are one sided and completely in favor of builder.
With introduction of RERA consumers are protected. There is a slump in new projects due to RERA provisions and builders are now defensive. I agree with rest of your comment. People have tendency to buy new properties if it is primary residence.
Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 11:19 pm
by smariner
Thanks for all the responses - it's pretty insightful.
Bengaluru Real Estate trend (2017/2018)?
Posted: Tue Nov 21, 2017 11:51 pm
by techynt
Are you seriously saying that you had to discount your property by 50% to sell it?
krivan1;666384Buying in Bangalore is very easy. But selling or renting is very tough in B’lore market especially high end properties. Here are few issues that I want to highlight :
B’lore has many established Tier-I builders (Sobha, Prestige, Brigade etc..) and you would observe launch of mega projects regularly. As a result, it is difficult to find a buyer in secondary market.
Also aggressive advertising, discounts at launch and tie up with home loan entities ensure smooth take off for new projects where as individual once bought, would find mountain to climb to dispose the property.
The sale agreement, payment terms and sale deed are one sided and completely in favor of builder.
I had visited two completed mega luxirious projects where several of the units are occupied from tier-1 builders (Sobha project at Bellandur and Prestige Shanthinikethan @ whitefield) and many of the owners (some of them are NRIs) are finding it difficult to find tenant in the range of 30K to 40K per month. Couple of flats that I know are vacant for the last 6 months. In desperation, they are ready to rent to group of bachelors as well. Had seen many flats are on sale in Prestige Shkthn and hardly there are any buyers. It was the same case in Sobha as well.
Personally it took 3 yrs to dispose off my two mid range flats (1.5 yr each). I had to offer 50% discount and many other concessions to the buyer to get rid of the property. What I finally got inclusive of rent was akin to bank FD rate.
Advice : You can buy for personal living. Property will be destroyed if you rent it. Don’t buy for renting and investment purpose.
Bengaluru Real Estate trend (2017/2018)?
Posted: Wed Nov 22, 2017 12:13 am
by krivan1
I am not really sure whether it was Demo, RERA, GST or Demand & Supply which contributed to slump in new launches but certainly wary if anyone blames it on RERA alone.
RERA prior becoming Act, went through lot of consultation process as like any Parliament Act and builder lobby across many states ensured their interests are not compromised. The only good part of RERA that I see is, blanket defaults that happened like in Unitech, DLF, DSK and Maytas would be prevented.
B’lore realty market didn’t see such frauds and bankruptcies. Recently happened to see one sale agreement of RERA compliant project and seem nothing changed for the buyers. Still builders want more than 50% of total cost to be paid by the buyer within first year of the project even in 5 year project. Atrocious withdrawl or cancellation charges, Tweaks on fixtures and materials usage clause, additional loading charged for some simple services, peanut penalty if builder has to pay damages continued. Worse, in the name of RERA compliant, premium was charged.
B2C Contracts are brutal in India be it Loan, Insurance and Realty Agreements. But then recently learnt that newly launched projects in far off locations by Godrej being charged at 7000 psft as basic rate. Even more amazing is, traction is good and seems lot of interest from buyers.
People from B’lore are so brainwashed about realty and your conversation with anyone would turn silence minus of realty.
Old-Spice2;666392With introduction of RERA consumers are protected. There is a slump in new projects due to RERA provisions and builders are now defensive. I agree with rest of your comment. People have tendency to buy new properties if it is primary residence.
Bengaluru Real Estate trend (2017/2018)?
Posted: Wed Nov 22, 2017 12:26 am
by krivan1
My previously posted response to your query on 12th Sep'17Just sharing my exp. I had two flats in B'lore and thought of keeping it to myself. But then remote management especially during vacate and rerenting was proved bit difficult. On top of it, whatever rent collected used to go in repair to make it ready for the next tenant.I don't know what is the issue with the secondary market in B'lore, it is too difficult to find buyers even while they are prime location. Offered with some decent discount, hardly there were any takers.I could quickly realise that what the seller and neighbour thinks 'right price' for the property might not be accepptable to the market. If sellers are blind to see the truth, had seen many properties are on sale for so many years and no trace of buyers.With self realization, offered 50% discount and got rid of the properties in no time.The OP asked how do we manage the properties without selling while we are abroad. From B'lore experience, I can say it is too difficult. In B'lore, RE discussion is everywhere and almost everyone who enters the city is brainwashed. Eventually every tenant would bite the RE bandwagon and moves on. Turnover ratio of the renters is very high. Keeping it locked also has many hazards. It is tough and personally would be happy to get rid of them.http://www.r2iclubforums.com/forums/showthread.php/41410-Real-Estate-in-India-Living-in-USA-Experiences?p=662607#post662607techynt;666402Are you seriously saying that you had to discount your property by 50% to sell it?