Country’s biggest real estate portal 99acrres.com have revealed that the property price trends for the Bangalore region have seen an escalation if we compare per square feet prices (PSF) of Q4-11 over Q1-11.Therefore, although the real estate market seems to have been under stormy conditions, yet Bangalore has seen some price movement.
Commenting on the same Vineet Singh, Business Head, 99acres.com said“Bangalore has seen the high number of new project launches as compared to other cities. Localities in Bangalore North, South & South East have seen a large number of new project launches at various price points and prices being pushed higher over the last 6 – 8 months due to end user buying. The successful launch of the first reach of Namma metro has enabled a higher price push in Indiranagar and has created increased demand in localities around Kanakapura Road & Jalahalli which will soon be connected in the next reach. There is also the new lines of the 2nd phase announced recently for the metro, and the next 3 – 4 years will hopefully see a lot of the infrastructure and commuting ache in Bangalore being reduced and new investment localities have emerged across the city.”
A look at the property prices of areas in East Bangalore shows that all localities have seen price appreciation in Q4-11 when compared to Q1-11. Kaggadasapura and Banaswadi have seen 15% and 17% price appreciation in PSQF prices when we compare Q4-11 prices over Q1-11. The prevailing rates of these localities are at Rs 3000psf (per square feet) for Kaggadasapura and Rs 3400psf for Banaswadi. Indiranagar saw highest action with prices moving up by 21% in Q4-11 over Q1-11.
Barring localities of Hennur Road and Yelahanka which witnessed 5% and 2% dips in property prices, all the other localities in North Bangalore saw price appreciation. Thanisandra and Jalahalli witnessed maximum movement with prices moving up by 28% respectively in Q4-11 over Q1-11.
Prices remained flat in South Bangalore localities of Bannerghatta Road, Electronic City and JP Nagar. Jayanagar, Kanakpura Road and Hosur Road on the other hand witnessed prices rise within the range of 15% and 19% in Q4-11 when compared to Q1-11. BTM layout saw maximum price dip with PSQF prices dipping from Rs. 4072 in Q1-11 to Rs 3728 in Q4-11.

New Delhi: A study done by 99acres.com real estate portal revealed that the property price trends for the Delhi and NCR region have seen an escalation if we compare per square feet prices (PSF) of Q4-11 over Q1-11.Thus although the real estate market seems to have been under stormy conditions, yet Delhi- NCR has seen some price movement.
Commenting on the same Vineet Singh, Business Head, 99acres.com said “Delhi NCR with expansion and infrastructure development is an ideal option for end user and investor. Property appreciation in almost all localities will happen for sure, though the increase maybe a bit tempered. With a slowdown in supply and construction being delayed there will be a premium for ready to occupy apartments in Noida and Gurgaon. “
A look at the property prices of localities of South Delhi show that all localities have seen double digit price appreciation in Q4-11 when compared to Q1-11. Vasant Kunj and Saket have seen 27% and 21% appreciation in PSQF prices respectively when we compare Q4-11 prices over Q1-11. The prevailing rates of these localities are at Rs 14000psf (per square feet) for Vasant Kunj and Rs 17000psf for Saket. Localities in East Delhi however saw stable psqf rates, barring Patparganj which saw 12% appreciation in Q4-11 over Q1-11.
All localities of North Delhi and West Delhi have also seen per square price appreciation. Rohini, Uttam Nagar and Moti Nagar saw prices move up by 22% in Q4-11 when compared to Q1-11. Metro connectivity has resulted in almost 30% PSQF price hike in Dwarka, and the prevailing rates are around Rs 7900 .
The Noida and Ghaziabad region has also emerged as one of most popular destinations for housing because it offers a perfect blend of industrialization and habitation. Sector 107 and Sector 143 of Noida saw prices moving up by 11% and 15% in Q4-11 over Q1-11. The property prices in these localities are at Rs. 3400psf and Rs. 3100psf in Q1-1`. Ghaziabad has also seen steadily upward moving property rates with Indrapuram and Raj Nagar Extension witnessing a 33% and 25% upward movement in prices respectively in Q4-11 over Q1-11.
Localities of Gurgaon also witnessed an upward trend in property prices. Properties located on the Sohna Road and DLF city Phase 4 in Gurgaon shows the highest appreciation with prices moving up by 19% and 18% respectively in Q4-11 over Q1-11. Localities like Vatika City and Manesar witnessed 12% and 14% increase in prices respectively in Q4-11 over Q1-11 with property prices floating around Rs. 6600psf and Rs. 3415psf in Q4-11.

Pune being the hub of service and manufacturing jobs is expected see sustained job creation of 90,000-1,00,000 a jobs leading to increased requirement of houses
Availability of properties in the range of Rs 45-60 lakh makes it affordable for end-users
Requirement for houses are expected to be sustained at 50,000 units in 2012

Pune: Property prices in Pune are expected to remain firm with upward bias in growth corridors, research report by the ASK Property Investment Advisors has said.
The report which covers the residential Real Estate requirement and supply of Pune Urban Agglomeration region is based on the economic and demographic profile of the city. During the launch of this report, Mr. Sunil Rohokale, CEO and MD, ASK Investment Holdings said, “The outlook of the Pune real estate market is based on the rapid growth of the city driven by strong economic activity and migration. Pune being the hub of service and manufacturing jobs is expected see sustained job creation of 90,000-1,00,000 jobs leading to increased requirement of houses. The proximity of the city to major towns like Sangli, Satara and Kolhapur makes it preferred place for investments.”
“The requirement of houses based on demographic and commercial space indicates that requirement for houses are expected to be sustained at 50,000 units compared to 40,000-45,000 units in previous years. Prices are expected to remain firm with upward bias due to sustained demand” said Mr. Amit Bhagat, CEO and MD, ASK Property Investment Advisors Ltd.
ASK Group which has emerged as a leading player in the Real estate Fund business manages domestic real estate funds of more than Rs 1000 cr. In Pune city, the group has invested in projects worth over Rs 525 crore. It has invested in a residential project worth Rs 255crore with Amit Enterprises and in another project with Darode Jog worth Rs 270crore.

When people ask “ where is a fall? Properties are costing still that high!” it is nothing but sitting in air conditioned offices and surfing net for good deals in real estate. The real estate cycle have stagnated the real estate price in entire nation.

Urban centers, except for Mumbai and Delhi, have witnessed steep fall as compared to 2007 prices. In Ahmedabad, residential rates have fallen drastically and only speculators and investors are buying properties. The fall is so steep that lease rentals have gone to 2001 level. In commercial properties, Ahmedabad is worst hit. Closure of malls and multi brand store rooms are proof of massive distruction in commercial lease rentals. Share and capital market down from 21000 mark also have reduced the sentiments of investors. Many big trading houses have gone in bankruptcy and failed to cope up with commitments not even in real estate units since majority of projects are under construction.

In Chennai, the rates are falling and out skirts of city is growing leaps and bounds. The demand in city have segmented into developing zones and massive SEZ developments. Huge townships are in under construction and investors from Gulf have invested huge sum in residential apartments. Because of this, supply and demand mismatched and prices have fallen to 2001 level. Water is a major aspect to any project and city is thirsty for over a decade. Ever since Tsumanmi touched the coast of Chennai, the low lying areas and coastal zones are badly effected. The rates are further likely to fall down.

Rajkot, Jamnagar and Vadodara are cities in Gujarat are showing signs of recovery and are doing good in residential price. For as small as Rs.5 lakh, one can get 1 BHK on outskirts of these cities. The developing mode and expansions are in offing and real estate markets are maturing in these cities.

Amreli, Jetpur, Juna Garh, Sanand, Bagasara, Surat and part of Veraval are developing huge real estate colonies and mass housing projects are in offing. In all 22 crore sq.ft. Are under construction and this much is in planning stage in various files with the government. The rates are likely to touch all time high and by 60 to 80% higher from current level.

In Rajasthan, Jaipur market is saturated and stagnated since last one year. Primary market for land deals are over and hands are changing within investors. Land price are historically high and for a acre of agriculture land, the cost have gone above Rs.7 crore withing city limits. The residential prices are falling since last two years and likely to follow the suit in next six months.

Real Estate in Udaipur, Chittoregarh, Jaisalmair and Kota are rising since very few good residential projects are on final stage. There are no takers for under construction projects. The rates have been stagnated since 2008 and likely so for next two years.

Chandigarh and Panchkula’s land market have ashamed the primary real estate market. The rates per acres have recorded as Rs.22 crores in recent past. Mohali and Kharar highway have shown nothing but speculation in land prices. Time for correction already arrived and land prices are again showing downturn. Investors are selling their stocks as it is basis and there is a huge gap between demand and supply. The supply is overflowing and no likely to stop.

Pune is one of the biggest cities in Maharashtra, is over powering Mumbai. Huge and massive infrastructutre development along with mass housing projects with premium and affordable segments, are offing everything for investors and actual buyers. Since inclusion of 32 villages and municipal limits are touching Pimpri Chinchwad and Talegaon, the city is having over supply hence the rates stagnated. Investors are still keeping high hopes and sustaining the losses. But wise practice always prevails in the market and some of them are selling the stocks immediately. The chances of falling the rates are dim but since the supply is huge, rate correction cannot be stopped.

Mumbai is having its own real estate markets. Every year, sum of millionaire increases and fortune of people changes over night. Finance capital is transforming into service capital. The rates are down but ready and premium properties are still costing fortunes. The rates are likely to come down.

Delhi and NCR are two different locations as far as real estate is concern. Gurgaon and Noida are saturated and new areas like Merut, Faridabad, Kosi and eastern Delhi are emerging into new real estate markets. Because of de-centralisation of commercial activities in NCR, residential markets are also scattered and so is demand. Rates have never looked up since 2007 and likely to stay stagnated for next two years.

Inspite of valid prediction by peers of the sector, property rates are not easy to arrest at any level.
HDFC Chairman Mr. Deepak Parikh have cautioned the trade of unjustified property rates and FSI purchased on very high rates. RBI have time and again issued circular to the banks to be more alert while financing the real estate business.
But nothing seems to stop the pace of property price in any area. It all started when the FSI rates have gone beyond anybody’s guess. FSI sold at Bandra West were ranging between Rs.11,000/- to Rs.15000/-, at mill land the FSI were purchased at Rs.15000/- per sq.ft., at Bandra Kurla Complex the rates were histtorically high.
Else where in the suburbs, Malad, Mulund, Kandivali and Mira Road; the FSI went almost 25 times more. Factories and workshops were sold by the corporate to capitalise on the real estate boom were also not imaginable. Bhandup, Worli, Kurla and Western Express Highway from Goregoan to Borivali were sold to builders at the rates which had created history in primary market of land and FSI dealing.
Sheth Group started selling at Lower Parel for Rs.25,000/- per sq.ft. D S Kulkarni went for Rs.31,000/- psf for Cuff Parade project. And there are many such high level rates which Mumbai has recorded in the recent past.
If the FSI is costing sky then it is but natural that the finish product will add cost of construction , profit margins, interest on venture funds, corruption paid and cost of marketing and commissions.
Who is funding the high value transactions to purchase land and FSI at such high cost?
Banks and other non banking financial institutions are in the game. ICICI Bank have invested its funds with the builders and real estate developers highest among other banks followed by HDFC and SBI, Standard Charted.
Realty funds established by ICICI, HDFC, IL&FS and other besides foreign funds joint venture for FDI are more of equity funds and are now partners with leading developers and builders in the country. Although direct foreign investment in Indian real estate are coming in with local partners but the management ideas and practice are certainly going to capitalise on the bull run of India Real Estate. Hundreds and billions of funds are operational in India.
To fuel in the fund race, DLF, Ansals and D S Kulkarni have already gone into IPOs and public offering. Next round may witness Omaxe, Parsvanth and few others from Delhi. Construction companies are also washed their hands in the fund Ganga. Venture funds are already operating before such realty funds.
The on slot and after math of fund establishments in the sector, huge funds are expected to real estate business to acquire land at what ever price. Leading developers in Mumbai have acquired more then 10000 acres of land in 400 kms redias. Corporate are working the modalities and working on the joint ventures. They still have large trace of land in the Mumbai.
Investors are selling their commercial stocks in Mira Road and Navi Mumbai. They are not purchasing but residential demand is increasing day by day. Although it was a lull between January to March because of liquidity crunch, May seems to be more hot for Mumbai’s real estate.
Demand is rising and will further rise since the exemption in Income Tax to pay home loan still a best bet to save money. Affordability have gone much higher and money received as compensation from redevelopment projects in Bandra and Worli are coming in Malad, Kandivali and Mulund, few are preferring Palm Beach Road at Nerul, Navi Mumbai.
Whatever it is, the trend is up swing as of now and will remain because of realty funds and second layer of investors the property market through out the country.
If the rates goes beyond affordability actual user will stop buying but fund managers will continue the bull trend to lure the opportunities.
It is nothing but a double boom. The recession period between the boom have escaped and the joint boom is going to remain for next two years. It is all now with investors who are looking at the higher rental income.