Team-BHP > Shifting gears


Reply
  Search this Thread
983,442 views
Old 12th August 2023, 18:35   #2806
BHPian
 
Join Date: May 2023
Location: Riyadh
Posts: 279
Thanked: 1,639 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by Mystic View Post
There were villas costing 16 crores (3 million USD in those days, one can get a home in Manhattan). Being a civil engineer myself , I could not digest the fact that the 16 crores villas donít have an underground drainage system in Bangalore. The real estate industry is not regulated in any scientific way and is driven by hype and no logic in India.
Thatís so true, the real estate industry is not regulated as it should have been. The ever sky rocketing prices are all about demand vs supply game.

Also, Even Burj Khalifa doesnít have an UG drainage system designed (one shouldnít feel left out), itís all about priorities
NomadSK is online now  
Old 15th August 2023, 11:06   #2807
BHPian
 
kaushikduttajsr's Avatar
 
Join Date: Jul 2017
Location: Bengaluru
Posts: 99
Thanked: 417 Times
Infractions: 0/1 (5)
Re: The Property / Real Estate Thread

One of friends bought an apartment at the peak of Covid wave 1 (2020). Seeing her, another friend purchased as well. Both of them informed me about their decision and told me about eye watering discount (20%+) on quoted price for premium builders (HoH and Sattva).

Come 2021, I made the plunge at the peak of covid wave 2. I got a great deal as well at Sattva. At that time, my EMI was 65k and rent was 40k. As I look back, I can't my friends enough. Today, after all the interest rate hikes, my EMI is 70k and the rents at the same society is 75k.

Last edited by kaushikduttajsr : 15th August 2023 at 11:07.
kaushikduttajsr is offline   (25) Thanks
Old 15th August 2023, 14:09   #2808
BHPian
 
Join Date: Sep 2010
Location: Bangalore
Posts: 669
Thanked: 1,915 Times
Re: The Property / Real Estate Thread

I sometimes wonder if the price will ever fall in Bangalore. I did think that the price would go down a lot more during Covid and after. But while many builders offered some discounts, they never gave "massive" discounts. Areas around Whitefield continue to command astronomic prices, frequently more than areas like Banashankari ( which I feel is more livable than Whitefield ).

One can also see gradually that there are more and more villa projects across areas, especially Sarjapur side and Whitefield side now. Four years ago, good, VFM villa projects were hard to come by. Either they were too expensive or too far off from the city. During the covid period, there were many VFM villa projects that were sold out.

In the post-covid era, there are a lot of new villa projects being announced, especially to cater to third-time or fourth-time home buyers ( who typically would have started with a 'value' apartment, then a 'luxury' apartment and then wondering what next ). There are villa projects in the vicinity of 6-7 crores in Whitefield and they are being lapped up by buyers quite easily. And mind you, many of the buyers are not business people or the CXO kinds - most are well-paid salaried couples that earn upwards 1.5 cr and can manage to pay off the big amounts in 3-4 years. Shows a marked difference in buying patterns.

I still remember scoffing at my dad who asked me to buy a villa - when it was launched, it was 85 Lakhs a villa ( 20 years ago ) and now costs anywhere in the vicinity of 12 crores. I was just into my second year of job back then and couldn't have afforded it then and cannot afford it now

During covid, with people having gone to their hometowns and come back clear-headed on how Bangalore has more to offer ( jobs and especially those astronomically paying tech jobs that don't exist anywhere in India mostly, education, weather, somewhat better law and order ) and with companies asking people to report to work on premises anywhere between 3-5 days, I don't expect the demands to fall or plateau any time soon, and we will see real estate (and school) businesses making hay for years to come. In an unrelated way, this also shows up in how people remain in Bangalore for festivals, holidays and tourist circuits seeing more footfalls during even Christmas/New year's/Diwali.

I still maintain that earning in Bangalore and spending in another place is still a great VFM way of living ( and you get awesome, quiet places 40-50 kms from Bangalore for a fraction of a cost ), provided you are willing to compromise on some creature comforts and lifestyle.

Last edited by airguitar : 15th August 2023 at 14:17.
airguitar is offline   (9) Thanks
Old 15th August 2023, 14:26   #2809
BHPian
 
Join Date: May 2022
Location: Bangalore
Posts: 39
Thanked: 53 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by am1m View Post
Yep, I live pretty close to this area, and this is not Indiranagar at all. If they are advertising this project as being in Indiranagar, that is completely misleading.

And what on earth is up with rentals in Bangalore? Couple of my colleagues are saying that they need to move because their landlords are jacking up rental rates by huge amounts. And these guys are not freshers with starting salaries, these are people with 15, 20+ years experience and with both spouses working. Is this happening all over Bangalore, or just in the areas close to IT parks/schools?
I think rental hike craziness is only where walk to work is applicable. A lot of people want to stay near the office and avoid the commute. as the office areas are mostly commercial with minimal housing around, the commodity is suddenly scarce. this applies even more for gated communities. the rents which were already high have become insane now. having said that, the usual choices like marathahalli and others for "reasonable housing" have become unaffordable now. it is to do with many reasons.

1. Migrants not knowing good and bad areas. they just hear from someone about some area and take the house in a hurry because of lack of time. the worst part is that many after staying in the city for years, think that Bangalore is only whitefield, marathahalli and at the maximum MG road.

2. As someone rightly said, there exists a greater fool willing to pay more for the same property. this will give sleepless nights to the greedy landlords who often do not honour the agreements and harass the tenants for more.

3. Bachelors. A lot of them especially the ones with the high pay, are not thinking twice in paying more for a single bed/bedroom in a 3BHK gated community for the quality of life and amenities. they often do not react much to the high price as it is always a matter of their share. this is jacking up prices even more for the families who are now moving away from such places.

my father owns 2 buildings in a good area in south Bangalore and the rents have been normal from the last 3 years. earlier, empty places would take time to fill but now, the fill is faster and the rents have barely seen a 10% increase. I myself live on rent in Jayanagar and my rent is far more reasonable than what my colleagues pay. I would say, one must do their homework on the areas and plan their future properly. especially the families. Schools and other living expenses are far more cheaper in the old areas of the city. with a little bit of commute, life could get far better especially with the hybrid model around.
flashgo is offline   (9) Thanks
Old 15th August 2023, 16:29   #2810
BHPian
 
Join Date: May 2009
Location: Bangalore,Kochi
Posts: 332
Thanked: 196 Times
Re: The Property / Real Estate Thread

Was just chatting on this topic with a friend on a train and it seemed so the talk of the town in Bangalore. Jacking up rentals is like a silent wave moving across the city which in turn is driving demand for ownership of flats and this driving more apartment projects and buildings which end up feeding the hungry real estate mafia and finally the elite Ď class Ď who feed on it to buy their votes. All this seems to be a vicious circle completely funded by the tax paying middle class!
gopa99 is offline   (1) Thanks
Old 15th August 2023, 23:02   #2811
BHPian
 
amit1agrawal's Avatar
 
Join Date: May 2016
Location: Bangalore
Posts: 220
Thanked: 612 Times
Re: The Property / Real Estate Thread

The rental rates within my expansive apartment complex situated in Whitefield have surged by 50-70% compared to the pre-COVID era. This surge in the smaller 3 BHK units, commanding rents exceeding 60k while the larger units fetch rents of 80k or more. Plus, these rental deals are swiftly finalized within a matter of hours. The real estate agents are making a killing.

I attribute two things to this crazy rise in rentals 1. Setting up offices of high-paying companies like Google, Amazon, etc near my society coupled with the preference of living close to the office due to heavy traffic 2. the arrival of the metro. These developments are placing considerable strain on families not employed by these high-paying companies. Even the lower-income segments of society, such as helpers, cooks, and security guards, are grappling with increased rental costs in their respective localities. Consequently, they are compelled to demand substantial wage increases.

I believe it will settle down after a few months once the 'demand' that rose due to returning families comes down. Otherwise, If the rentals continue to rise like this I think very soon they will become unaffordable & then the owners would not be able to find tenants thus leading to a cycle of rentals correcting.

Bangalore is increasingly becoming unlivable! High cost of living, choco-bloc traffic, expensive schools, etc. Sometimes I wonder if one day would I be 'forced' to move out of Bangalore due to its ever-rising cost of living while sliding down on ease of living index (if there was such a thing).
amit1agrawal is offline   (5) Thanks
Old 16th August 2023, 02:35   #2812
BHPian
 
GutsyGibbon's Avatar
 
Join Date: Mar 2008
Location: Southern Calif.
Posts: 746
Thanked: 4,500 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by amit1agrawal View Post
Bangalore is increasingly becoming unlivable! High cost of living, choco-bloc traffic, expensive schools, etc. Sometimes I wonder if one day would I be 'forced' to move out of Bangalore due to its ever-rising cost of living while sliding down on ease of living index (if there was such a thing).
Pardon my ignorance here.
I just moved my parents into a Sobha apartment on Kanakapura road. When I talked to residents, a lot of them work in the IT corridor, and take the Metro. The station is very close by. Places that seem far on roads are just a short ride away. The good schools, malls, and entertainment are all here. I see lots of apartments listed in these areas from 1cr to 2 cr, the rents are also in the Rs20k to Rs 40k price range for 2BHK. I think more and more people will commute using a metro to these IT companies. I cant imagine other things like maintenance and utilities to be that different from South Bengaluru to Baiyappanahalli or Whitefield.

That said, in the west we pay a premium for things like ocean view and mountain view, and I get it. Bengaluru prices makes no sense to me. Sobha Dew Flower on Sarakki halli main road, with access through a tiny 20ft nightmare of a road is Rs 5Cr, its old and amenities are limited. While Sobha/Prestige apartments with 5 star amenities on Kanakapura road & very close to metro station is 1.3Cr, and they are mighty awesome! I just dont understand the the premium being asked for locations such as tiny village roads. Who is buying this, & what is their logic? The location of this 5Cr apt is truly hellish.

When I looked at location of Sobha Dew Flower, I just laughed and walked away.

Last edited by GutsyGibbon : 16th August 2023 at 02:38.
GutsyGibbon is offline   (8) Thanks
Old 16th August 2023, 11:38   #2813
BHPian
 
akhil_007's Avatar
 
Join Date: Dec 2009
Location: Bangalore
Posts: 149
Thanked: 396 Times
Re: The Property / Real Estate Thread

Quoting you all to share my thoughts and get some advise as well.

Quote:
Originally Posted by kaushikduttajsr View Post
Come 2021, I made the plunge at the peak of covid wave 2. I got a great deal as well at Sattva. At that time, my EMI was 65k and rent was 40k. As I look back, I can't my friends enough. Today, after all the interest rate hikes, my EMI is 70k and the rents at the same society is 75k.
Response: I am assuming this is for the fresh flat and NOT resale. And seems to me that this is your secondary property, which you bought as an investment


Quote:
Originally Posted by flashgo View Post
my father owns 2 buildings in a good area in south Bangalore and the rents have been normal from the last 3 years. earlier, empty places would take time to fill but now, the fill is faster and the rents have barely seen a 10% increase. I myself live on rent in Jayanagar and my rent is far more reasonable than what my colleagues pay
Quote:
Originally Posted by amit1agrawal View Post
The rental rates within my expansive apartment complex situated in Whitefield have surged by 50-70% compared to the pre-COVID era.
Quote:
Originally Posted by GutsyGibbon View Post
Pardon my ignorance here.
I just moved my parents into a Sobha apartment on Kanakapura road. When I talked to residents, a lot of them work in the IT corridor, and take the Metro. The station is very close by.
I have been looking to invest in IT belt for a long time now. But it comes with lots of concerns/issues like
1. No proper land documentation
2. No planned water supply (I dont want to depend on water tanker mafia)
3. Drainage/Sewage related issues
4. Questionable build quality
5. Constant need to pay maintenance for each and everything.

and finally, whether I will be able to resell them(even small profit is ok). Do IT crowd not care about these? or do they think it will be taken care of automatically by greasing govt departments?

I am curious to know what is the experience of people who resold their properties/flats after X number of years and what profit % they made.
I believe this is the right yardstick to measure a property's worth

I have invested in few properties in south/southwest Bangalore and North Bangalore and though % appreciation seems lesser than IT belt, resale is comparatively easier

Last edited by akhil_007 : 16th August 2023 at 11:40.
akhil_007 is offline   (1) Thanks
Old 16th August 2023, 11:51   #2814
BHPian
 
amit1agrawal's Avatar
 
Join Date: May 2016
Location: Bangalore
Posts: 220
Thanked: 612 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by GutsyGibbon View Post
Pardon my ignorance here.
I just moved my parents into a Sobha apartment on Kanakapura road. When I talked to residents, a lot of them work in the IT corridor, and take the Metro. The station is very close by. Places that seem far on roads are just a short ride away. The good schools, malls, and entertainment are all here. I see lots of apartments listed in these areas from 1cr to 2 cr, the rents are also in the Rs20k to Rs 40k price range for 2BHK. I think more and more people will commute using a metro to these IT companies. I cant imagine other things like maintenance and utilities to be that different from South Bengaluru to Baiyappanahalli or Whitefield.
Most IT companies are on the Bellandur to KR Puram stretch of the ORR plus Hebbal cluster. Kanakpura Road is just too far even when the Whitefield metro gets connected to the rest of the metro in Bangalore. I suppose that's the reason the rents are still reasonable in that part of Bangalore as they are in 'old' Bangalore like Jayanagar, JP Nagar, Malleshwaram, Rajajinagar etc. Having said that, even a 2cr property is out of reach for a lot of supposedly highly-paid IT folks. One would run up an EMI of up to 2L per month! How many IT folks can spare 1.5-2L EMI plus education plus living expenses plus savings for retirement ( no pension for IT folks) etc?
amit1agrawal is offline   (2) Thanks
Old 16th August 2023, 11:58   #2815
Distinguished - BHPian
 
Join Date: May 2010
Location: Bangalore
Posts: 1,873
Thanked: 11,603 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by akhil_007 View Post
...and finally, whether I will be able to resell them(even small profit is ok).
...
I am curious to know what is the experience of people who resold their properties/flats after X number of years and what profit % they made.
I believe this is the right yardstick to measure a property's worth
I've asked a couple of times on this thread itself and among friends. Very tough to get numbers. Flats appreciate nicely on paper and when the builder is quoting the sale price. But the few actual sales I've heard numbers for from people I know and from my neighborhood, have been much more modest in terms of appreciation, and that too after a lot of effort to sell.

Land of course, is an entirely different thing- especially if it's one generation that bought and the next generation who is enjoying the proceeds!

Will be glad to hear more, about flat resale numbers.
am1m is offline  
Old 16th August 2023, 12:13   #2816
Senior - BHPian
 
Sebring's Avatar
 
Join Date: Apr 2011
Location: Dubai/Bengaluru
Posts: 3,480
Thanked: 10,901 Times
Re: The Property / Real Estate Thread

Off Kanakapura road, Sobha Forest View (Oak) is awesome
Quote:
Originally Posted by GutsyGibbon View Post
I just moved my parents into a Sobha apartment on Kanakapura road. When I talked to residents, a lot of them work in the IT corridor, and take the Metro. The station is very close by.
Sebring is offline   (1) Thanks
Old 16th August 2023, 12:13   #2817
BHPian
 
UD17's Avatar
 
Join Date: Aug 2022
Location: Dwarahat
Posts: 392
Thanked: 1,195 Times
Re: The Property / Real Estate Thread

For Pune/PCMC folks:

I was accompanying friend in his search for a 3BHK. Our search location was Ravet, Punawale, Akurdi due to proximity to Mumbai, where my friend will shuttle in between and + need some new places with greenery & mountains around.

Few project we saw yesterday:

1. City1 panache: Akurdi Pradhikaran (AKA Ravet): 3 BHK and 4 BHK for whooping 1.7 to 2.2 Crores. Pathetic price, Good location, One building, 3 flats per floor, No ground area to relax (just one big tower), Amenities on top floor (IIRC 24th or so). Disappointed and shocked. Availability was limited as the possession is next year.

2. Vision Vanessa: Akurdi Pradhikaran (AKA Ravet)- 300 meters away from above project (No 1.). Newly launched, possession 2026, only 3 BHK, 4 flats on 1 floor, 2 towers, central amenities on ground, Mahada reservation building besides (in a separate gate). 3BHK ~1400 Sq. ft. for whooping 1.8 Cr, messed up layout configuration (our assessment), Kitchen and drawing room fully interfering, pathetic price, Building all around, Wine shop/small streets food just outside the gate in walking distance.

Not so impressed overall due to insane price Vs offerings and the clutter all around. The adjacent plot (looks in equal size to this project) is empty so future project will certainly impact the airiness, visibility and would create lot of dust & other nuisance during construction (which will run for years). Dropped.

3. Autograph ANP: Ravet-Aundh BRT (Near Basket bridge): 4 tower. Would be ready by 2027, 500+ flats, mix up of 2,3,4 BHK. Again the quoted price (3BHK 1.6 Cr.) in insane for the location (just besides road, other side is Pawna river- Gods knows what happen if it floods). Bigger issue is front road is BRT so there is no way you can turn right while coming out of building. You have to turn left and go 1 Kms ahead, take a U turn to go to other side of the road or town all the time. Dropped for the price, inconvenience and crowded feel.

Overall came back disappointed. I was more disappointed than my friends because i explored real estate projects after 8 years and the eye watering quote made me think that our 2BHK 1070 built up was way more VFM than these 3 BHK.

Every builder is trying to showcase them as premium and asking insane amount of money. They don't talk anymore in terms of INR/Sq.ft but as a whole package. This way they hide all the cost justification. I remember that i bought my 2 BHK @ 5000/Sq. ft. rate and now if i convert the above 3 project quoted price its nearly 13k INR/Sq.ft. to 15k/sq.ft. While resale market rate is still 7-8k/sq.ft.

My friend said there is no point in investing this insane amount at high interest rates and he is OK with continuing his rental 2BHK.
UD17 is offline   (2) Thanks
Old 16th August 2023, 12:37   #2818
BHPian
 
kaushikduttajsr's Avatar
 
Join Date: Jul 2017
Location: Bengaluru
Posts: 99
Thanked: 417 Times
Infractions: 0/1 (5)
Re: The Property / Real Estate Thread

Quote:
Originally Posted by akhil_007 View Post
I am assuming this is for the fresh flat and NOT resale. And seems to me that this is your secondary property, which you bought as an investment
We stay in this apartment sir, hence the callout on rent savings. It's also a new property as you've rightly mentioned. Interesting assumption about it being an investment though. How did you arrive at it?
kaushikduttajsr is offline  
Old 16th August 2023, 15:35   #2819
BHPian
 
akhil_007's Avatar
 
Join Date: Dec 2009
Location: Bangalore
Posts: 149
Thanked: 396 Times
Re: The Property / Real Estate Thread

Quote:
Originally Posted by amit1agrawal View Post
Most IT companies are on the Bellandur to KR Puram stretch of the ORR plus Hebbal cluster
A friend bought a villa for 1.8 Cr in Malur 5 years back, which is approx 25 kms from whitefield but travel time is very less due to less traffic and relatively lower population density. However he has a new problem now. There is lot of truck/lorry movement since the area is littered with godowns of delivery companies. There is no escape now. The price he paid at that time was for peace of mind, which is nullified now.

For reference, Sarakki to Whitefield is approx 28 kms.

Quote:
Originally Posted by kaushikduttajsr View Post
We stay in this apartment sir, hence the callout on rent savings. It's also a new property as you've rightly mentioned. Interesting assumption about it being an investment though. How did you arrive at it?
You mentioned initially that 65K is emi and 40k is rent. And then 70k emi instead of paying 75k rent. So 2 EMI's?! A friend is in similar situation and that was running in back of my mind. He bought another flat in same apartment complex and rented it out. The rent covered EMI
akhil_007 is offline  
Old 16th August 2023, 16:10   #2820
BHPian
 
kaushikduttajsr's Avatar
 
Join Date: Jul 2017
Location: Bengaluru
Posts: 99
Thanked: 417 Times
Infractions: 0/1 (5)
Re: The Property / Real Estate Thread

Quote:
Originally Posted by akhil_007 View Post
You mentioned initially that 65K is emi and 40k is rent. And then 70k emi instead of paying 75k rent. So 2 EMI's?! A friend is in similar situation and that was running in back of my mind. He bought another flat in same apartment complex and rented it out. The rent covered EMI
Ah! My bad, I should have clarified that these are cost comparisons between rent and EMI when I purchased the apartment in 2021 vs. today. I was paying a higher EMI when I just moved into my apartment (vs. the ongoing rent where I was staying just before). Today, the EMI is lesser than the ongoing rent, hence I thanked my stars
kaushikduttajsr is offline   (3) Thanks
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright ©2000 - 2024, Team-BHP.com
Proudly powered by E2E Networks