Experts debate urban housing challenge and the way out

Budget projects, vertical expansion and easy finance options could be the way forward to meet the surging demand of housing in the national capital region (NCR) as well as in the country. At the Mint Real Estate Conclave held recently, this was the consensus that emerged among a panel of industry experts and decision makers who debated on the challenges that confront the real estate sector amidst growing skepticism after the global economic slowdown.

Getamber Anand, vice-president, Confederation of Real Estate Developers’ Associations of India, pitched for relaxed monetary policy for the sector.

“The real estate sector has least Non-Performing Assets (NPAs) in comparison to other sectors like power. And yet, when it comes to giving us easy finance options, we are seen skeptically,” he said.

National Real Estate Development Council president Navin M Raheja too agreed. “We are prepared to take on challenges if the policy makers trust us,” he said even as he vouched for high-rise buildings as the solution to make up for scarcity of housing options.

Romi Roy, urban planner, DDA, said there was a need to develop civic infrastructure to cater to the rising number of homebuyers.

She also admitted that urban planners haven’t been able to deliver promising solutions to the problem of affordable housing and viable city infrastructure that could accommodate pressures of rising population.

Source: http://www.hindustantimes.com/India-news/Haryana/Experts-debate-urban-housing-challenge-and-the-way-out/Article1-787580.aspx

Punjab realty sector to be sluggish till polls over: Experts

CHANDIGARH: The real estate sector in Punjab is likely to witness sluggishness in the run up to Assembly elections in the state next month, with investors expected to adopt a wait-and-watch policy with regard to new investments till the next state government comes to power, say experts.

The maximum impact of the upcoming elections is expected to be visible in new and upcoming residential projects, which still require statutory approvals from various government authorities to take off, as investors and financiers will be reluctant to infuse money into these projects in the wake of the Code of Conduct coming into force, real estate experts said.

The Election Commission of India yesterday announced that elections for the 117-member State Assembly in Punjab would be held on January 30.

Spiralling interest rates, coupled with slackening demand for property, has already made a significant dent on the property market in Punjab, with sales prices of real estate products dipping by 10-15 per cent in the past six months, they said.

"Investors do stop or become reluctant in investing in new projects during state elections as they wait for formation of a new state government, which may go for changes in policies for the real estate sector," CREDAI (Punjab) President Kulwant Singh told PTI today.

However, he said the elections will have no impact on ongoing projects.

The country's leading real estate developer, DLF, had also recently opined that the real estate industry faced a "little bit" of a slowdown during elections.

"There could be an impact... People become a little wary of investing in the real estate market during elections... They want to watch stability (till the next state government is formed)," DLF India Executive Director (North) Rahul Mehta had said.

Apart from this, financial institutions have already seen an up to 20 per cent drop in credit offtake by real estate developers, especially in Chandigarh, Mohali and Panchkula, in the past four months.

"Investors are switching over to a wait-and-watch policy concerning real estate buying," HDFC Joint General Manager (Punjab, Haryana, Himachal Pradesh) P C Srivastava said.

Non-Resident Indians (NRIs), who are among the key players in the real estate sector, also stay away from the property market till the next government comes in.

"NRIs will refrain from buying new properties in Punjab until the new state government is formed," NRI Sabha (Punjab) President Kamaljit Hayer said.

Nevertheless, the real estate experts avowed that whichever political party forms the next government, it will continue to support the property market through its policies.

Source: http://economictimes.indiatimes.com/markets/real-estate/news-/punjab-realty-sector-to-be-sluggish-till-polls-over-experts/articleshow/11242703.cms

Delhi: Property prices may fall 20-30% by mid-2012

Real estate prices may fall 20-30% in several pockets of Delhi-NCR and Mumbai in six months, but experts are divided on whether and when prices will decline across the board.

A study by HT of the balance sheets of India’s top 10 listed developers revealed a massive oversupply and a slowdown in sales: they are sitting on an estimated Rs 31,000 crore worth of unsold properties.

Already, most developers are offering freebies amounting to 5-8% of the property value. And if you bargain really hard, mid-rung developers are offering discounts of 10-15% on a case-by-case basis.

“But real estate firms are not slashing prices (across the board) as they can still access capital from private equity funds or by restructuring loans,” said a real estate analyst.

“Companies are going for high margins compared to high volumes. In the long run, this model is not sustainable,” said Pankaj Kapoor, managing director at real estate consulting firm Liases Foras.

Prices will fall when companies begin to feel the pinch arising from slow sales.

“There is a downward pressure on prices,” added Ambar Maheshwari, managing director of corporate finance at Jones Lang LaSalle India, a leading property consulting firm. “But it’s difficult to say when prices will actually fall.”

Realtors denied a slowdown.

“Developers selling properties in prime areas are seeing sales, especially in completed projects. The sales are not happening in the outskirts and unfinished products,” said Niranjan Hiranandani, head of the Mumbai-based Hiranandani Group, a leading real estate developer.

But industry experts said that specific exceptions apart, the oversupply is for real.

Source: http://www.hindustantimes.com/News-Feed/BusinessRealEstate/Delhi-Property-prices-may-fall-20-30-by-mid-2012/Article1-785091.aspx

NRIs on a property buying spree

To cash in on the rupee depreciation, non-resident Indians (NRIs) are making a beeline to buy property in India. Most developers Business Standard spoke to claimed a 25 to 30 per cent spurt in sales to NRIs over the last two months.

Since August, the Indian currency has fallen by around 20 per cent against the US dollar. According to real estate companies, brokers, analysts and consultants, this has triggered a substantial rise in the volume of property-related enquiries from NRIs. The actual deal numbers have also gone up considerably. Many NRI buyers are even buying multiple units for investment purposes.

Since NRIs earn in foreign currency, their buying capacity has gone up manifold with the rupee weakening against the dollar.

“In the last three months, we have sold more than 100 units to NRIs, a clear increase of more than 20 per cent over the previous quarter,” said R K Arora, chairman and managing director of real estate developer, Supertech. Arora said while the domestic demand had slowed due to high interest rates, interest from NRIs had shown a great surge.

Similarly, Sunil Dahiya, managing director of Vigneshwara Developers and senior vice-president of real estate association National Real Estate Development Council (Naredco), said some of his company’s existing NRI customers were wanting to invest more in property. Vigneshwara has already recorded a 25 per cent increase in sales to NRIs over the last two to three months. “Most buyers who were planning to buy two-bedroom apartments earlier are now switching to three-or four-bedroom apartments,” he said.

Raheja Developers, which is building tall residential structures in Gurgaon and Delhi, has also noted a similar trend, where every fifth booking of its recently launched project has been from an NRI.

At least 25 per cent of the bookings in the project has been from NRIs, compared with just 10 per cent in our earlier projects, said Director Nayan Raheja. “I attribute this trend to the decline of the rupee against the dollar. Now, to leverage on the trend, we are marketing ourselves in the US and Canada, as this is just the right time to invest in India.”

Lalit Jain, chairman and managing director of Kumar Builders and the chairman of another real estate association, the Confederation of Real Estate Developers’ Associations of India (Credai), agreed that NRIs were making the best of the opportunity. According to Credai, there has been a 30 per cent rise in enquiries from NRIs and 20 per cent increase in actual buying.

Yet another developer, BCC Infrastructure, has sold 100 of its 800 units to NRIs this quarter. “Yes, we can say this is partly attributable to the falling rupee,” said BCC Infrastructure Managing Director Kumar Bharat. He added that NRIs were also showing interest in industrial plots, as they wanted to establish business centres in the country, against the backdrop of the global economic meltdown.

“Owing to the uncertain econominc environment, Indians living in the West do not want to put their savings in banks. They are investing in the Indian real estate market at a time when the rupee is ruling at record lows,” Dahiya noted.

A top representative of the Global Organisation of People of Indian Origin confirmed the trend of NRIs putting their money in the Indian property market more at this point due to the rupee dip. “There’s no better time than this to invest in Indian real estate,” he said. NRIs took quick decisions on buying residential property, he added, explaining how they reacted so quickly to the rupee-dollar development.

Anshuman Magazine, chairman and managing director, CB Richard Ellis (South Asia), told Business Standard the trend was positive as India had the highest appreciation in real estate. “However, real estate decisions take time to transact, unlike stocks, so it is difficult to give an industry figure,” he said.

Sanjay Sharma, managing director, Qubrex, a real estate consultancy, said: “It is difficult to assess how much of an increase in NRI buying has been because of depreciating of the rupee and how much because of seasonal trend.” He argued this time of the year usually saw NRIs buying property.

Source: http://www.business-standard.com/india/news/nris-onproperty-buying-spree/458868/

MagicBricks Apartment Index up 4% in July-Sep 2011 quarter

NEW DELHI: Home sales across the country have been falling for the last few quarters but property prices are still on the upswing. The MagicBricks India Apartment Index, which is the weighted average of supply and prices across cities, went up by 4% in the July-September 2011 quarter, showing a rise in capital and rental values across metros.

Of the eleven cities covered in the India Apartment Index, nine have seen a rise in property rentals and capital values. The apartment index in Delhi, Chennai and Ghaziabad rose 9% in the quarter, followed by Noida (8%), Bangalore and Hyderabad (5-6%) and Mumbai, Gurgaon and Pune (1-2%). The Apartment Index in Ahmedabad dropped 5% on the back of falling values in some key locations while Kolkata remained stable during the quarter, said the MagicBricks report.

In Delhi, the index rose by 9% because of rise in average prices in majority of localities across the city. "Maximum activity was witnessed in areas where middle and upper middle income groups of buyers are active," said the report. There was a significant increase in capital values in Dwarka, Chittaranjan Park, Kalkaji, East of Kailash, Mayur Vihar Phase-1 and Paschim Vihar, followed by Rohini Sector -13 and Alaknanda.

In Ghaziabad, increase in average capital values of properties across the city pushed the index up 9%, while in Noida, the index rose 8% because of increase in average capital values of properties across the region. "This was primarily due to the legal battles in Noida Extension between farmers and Noida development authority. Properties have benefitted in both possession and under-construction stage," said the report.

The rise in values as well as the number of listings in areas like Thiruvanmiyur and Ambattur were major contributors to the rising index value in Chennai. The index rose 5% in Hyderabad indicating end-user activity.

Source:  http://economictimes.indiatimes.com

Chennai suburbs set to see retail boom

CHENNAI: The explosion in residential and commercial developments in Chennai’s suburban areas is likely to make it an attractive retail destination, according to Real Estate Intelligence Service, Jones Lang LaSalle India.

The oversupply that has prevailed in Chennai’s office market has emerged as an innovative opportunity for the city’s retail segment as a few developers are contemplating converting their upcoming office premises into retail destinations, the report Asia Pacific Property Digest - Chennai Office & Retail Real Estate said.

This trend is expected to increase retailer penetration in the city and the suburbs in particular, the report added.

The lack of well-established high streets in the suburbs of Chennai, unlike the centre of the city, is expected to be the key driver to the success of malls and with good-quality malls in the pipeline, the city is set for a rapid makeover in the near future.

Source: http://ibnlive.in.com/

Chennai property measuring 1,400 square feet sold for Rs 1.27 crore

KOLKATA

A residential unit measuring 1,195 square feet and located in the upcoming location of Rajarhat was leased by a leading corporate for a monthly lease value of Rs 35,000. Rajarhat has seen growth in the commercial as well as residential sectors.

due to the increasing leasing activities over the last few years mainly due to factors such as proximity to the IT/ITeS hub as well as the quality of construction in that location. Many regional and national players have mid-ranged and high-end projects in the location. The lease market here has seen an increase of 11% over the last year but is being sensitive to extreme price rise.

CHENNAI

A second-generation residential property, measuring 1,400 square feet and situated in Nungambakkam was sold for a total value of Rs 1.27 crore at an average capital value of about Rs 9,000 per square foot. The average value in the location ranges from Rs 6,500 to Rs 11,000 per square foot.

The value has seen an increase of about 2% to 11% over the last six months due to an existing interest in the location as it is in the heart of the city and is also the commercial and retail hub. The location is expected to see the same kind of interest in good-quality residential units. However, since there are not too many new projects, the actual number of transactions will be limited.

PUNE

A high-end residential apartment, measuring 1,805 square feet and located in Kharadi, was sold for a total value of RS 82 lakh. The average capital value commanded by the property was about Rs 4,500 per square foot, well within the range for comparable properties of about Rs 4,000 to Rs 5,000 per square foot.

Capital values in the location have remained stable over the last quarter, but it has seen a 38% increase in values over the last year backed by buoyant demand and conducive economic conditions. Going forward, however, the values are expected to remain stable as Pune remains an end-user driven market and is, therefore, easily influenced by factors like high inflation and tightening home loan rates.

Source: Cushman & Wakefiel

Indian commercial real estate struggles in the fourth quarter

The Indian economy has grown steadily throughout the course of the year but interest rates have also gone up, and this has caused the output growth to decline and capital values have turned negative for the first time since 2009.

The level of financial uncertainty in Europe and America is having an adverse on India. China, Brazil, Russia and Japan are performing better but the uncertainty in the Western markets is affecting the real estate market in India.

Investor interest in India is in decline due to disparity between investor returns and capital values. Ramesh Nair MRICS of Jones Long LaSalle claims many developers in the larger cities are being forced to rethink how they structure and sell their office spaces.

“Many developers, especially in cities such as Mumbai, are today offering smaller units of space (even as small as 500-1000 square feet) in Grade A buildings. This is in sharp contrast to the scenario a few years back, where only much larger units were available. With banks and institutional lenders becoming more cautious about lending to the commercial real estate sector, demand for capital from private equity and NBFC funding has increased” he said.

India has dropped to 19th place for its fourth quarter rental value expectations. This drop of 6 places was caused by available space rising at a much higher rate than the demand for the space.

Source: property-report.com/

Most unsold flats in city cost over `1cr

Soaring real estate prices are scaring away homebuyers in Mumbai. On November 3, HT had reported that the number of unsold flats in Mumbai has touched a record 32,000. It is now learnt that approximately 20,000 (68%) of these flats are priced at more than Rs1 crore. In contrast, a mere 2% are priced in the Rs25 lakh-Rs50 lakh range.These are the findings of Liases Foras, a leading non-brokerage firm that researches trends in the real estate market.

“It is more of a speculative market and rates are being quoted without any thought,” Pankaj Kapoor, CEO of the firm, told HT.

“To avail a loan for a flat costing more than Rs1 crore, the buyer should have a minimum annual salary of Rs20 lakh. Even people with such salaries find it hard, considering the high cost of living in recent months,” he said.

In addition, the Reserve Bank of India has tightened lending norms and also hiked interest rates on home loans, as a result of which many buyers have put off their purchase plans.

But builders defend the high realty rates. “Land prices in Mumbai are the costliest in the world and delays in permissions only add to the problem,” said Paras Gundecha, president, Maharashtra Chamber of Housing Industry (MCHI), the apex body of builders.

Sunil Mantri, chairman and managing director, Sunil Mantri Realty Limited, blames the government. “There is hardly any incentive to construct affordable units. Hence builders prefer to cater to the upper sections, from where they can make the maximum profit,” he said.

The MCHI has suggested a three-way formula to tackle the problem. “Higher FSI (Floor Space Index), faster permissions and lower interest rates will automatically reduce the rates,” said Gundecha.

Source: hindustantimes.com/

Myths about real estate

MYTH 1: There is a ‘bubble’ in the Indian real estate market, and it will burst soon.

Fact: There is no evidence of a ‘bubble’. When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof and beyond affordability. This is far from the case in Indian real estate.

The residential sector is led by end-users and it is they who dictate the state of the market. Neither is there a significant correlation between the state of the stock market and that of the property market. There are no indications that investor activity has overtaken genuine buyer activity. In residential, the proportion is approximately 80% end users and 20% investors. In the commercial sector, the proportion is almost 100% end users who are taking property on lease. There are instances of overheating but these are localised.

MYTH 2: Indians do not figure very large as property buyers on the international property market.

Fact: Residential rates at Mumbai’s Nariman Point or Cuffe Parade are priced anywhere between Rs 25,000-55,000 per sq feet. For the price of a 2BHK flat in these areas, one can buy a villa in Dubai or London’s suburbs, a luxury flat or a standalone house in New Jersey. Many Indian buyers have woken up to this fact and are buying homes abroad.

Myth 3: Thanks to India’s booming economy, higher salaries, higher aspirations and easier home loans, most Indians are buying high-end homes now.

Fact: The accent is still very much on affordable housing. As before, the Great Indian Middle Class is not motivated by its need for greater convenience, but by the ability to pay for a home. In that context, the greater demand will always be towards affordable housing options.

MYTH 4: Major Indian developers are abandoning the MIG sector and concentrating on high-end residential projects because it makes better business sense.

Fact: Most big-banner developers still see sense in constructing mid-income housing projects, since they can construct more volumes. The demand in terms of units is phenomenal and developers getting into this segment can build for years to come. They have the assurance of sure-shot absorption, as well. Most major Indian developers are NOT shifting from affordable to high-end housing-only branching out. While they get into middle-segment housing, they continue to build high-end projects.

Myth 5: The metros are still the best places to invest in real estate.

Fact: The real estate boom is causing many of our metros and even some of the previously popular Tier II towns to saturate at an incredible pace. Property prices there skyrocket beyond the reach of middle-income homebuyers, causing them to look a little further afield each year. Investors observe these migration trends, analyze the magnitude and scope of activity, and identify one or the other new town as the next coming thing.

A fundamental real estate investment mantra is that emerging localities are preferable to established and often saturated ones. Established areas eventually reach a peak in terms of appreciation potential, after which the growth rate either slows down or stagnates. Moreover, there is little scope for new market drivers such as malls to find a place in saturated localities - meanwhile, prices remain high.

This is not the best of scenarios from an investment point of view, since optimal investment requires low entry levels and appreciable growth within a realistic time-frame. Therefore, as one or the other destination reaches its peak potential on all these counts, new ones come into the limelight.

Source: The Times of India

Demand set to exceed supply in 7 cities by 2015

HYDERABAD: The demand for affordable housing in top seven cities, including Hyderabad, is likely to outstrip supply by 2015, according to Cushman & Wakefield (C&W). The real estate consulting firm in its annual report found that the estimated demand for residential property in cities namely National Capital Region, Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata is expected to touch 2.3 million units over the next five years while the estimated supply will be approximately 1 million units, leaving a shortfall of 130 per cent i.e. over 1.3 million units.

* The residential property market is growing at a Compound Annual Growth Rate (CAGR) of 11 per cent and the estimated volume requirement across the country will be 3.94 million housing units, including 2.3 million units in the seven cities.

Interestingly, the gap between demand and supply is likely to be intense in the affordable housing segment, whose demand is growing approximately three times more than the supply.

* "The present economic situation may be viewed as a transitory point for the real estate dynamics in India.

Although, the market looks positive in the medium term with considerable demand, the industry seems to be affected by the rising interest rates, rise in construction costs and inflation.

However, the long-term perspective suggests that the sector will continue to witness demand in all areas,” said Anurag Mathur, MD of C&W.

* While NCR is expected to record the highest demand for over 700,000 units, Mumbai is likely to record the highest CARG of 14 per cent between 2011-15.

Similarly, Bangalore is expected to witness a demand for approximately 2,87,000 units.

"As a result of significant population migrating to tier I cities, these locations are likely to witness highest demand," Mathur explained.

* C&W also anticipates that the demand is likely to exert an upward pressure on property prices especially in markets like NCR, Mumbai and Bangalore where the gap between demand and supply is high.

* "The upcoming supply needs to be priced judiciously," said Akshay Kulkarni, executive director of C&W.

Source: http://ibnlive.in.com/news/demand-set-to-exceed-supply-in-7-cities-by-2015/190377-60-121.html

Real estate sales to dip this season, say industry experts

Diwali, the festival of lights, seems to have failed to enlighten the fortunes of real estate companies. Industry experts said the year-ahead outlook looked grim with demand expected to fall by 30-40%. Besides, a correction in prices looked unlikely. “In Mumbai, the National

Capital Region (NCR), Bangalore and Chennai, the demand is expected be down by 30-40% against the last two years,” said Thirumal Govindraj, executive director at the international real estate consultancy firm Global Corporate Services India, CBRE.

India’s real estate sector has seen a spurt in sales between October and December every year for some time now. Almost 50% of the sales are closed during the last five months. However, this year, buyers are likely to stay away, said experts.

“Buyers are going to delay the purchase by about six months due to the Reserve Bank of India’s stance on interest hikes,” said Niranjan Hiranandani, head, Hiranandani Group. “The most impacted are the people who want to purchase an affordable house, it is impossible for them to buy one as interest rates are very high.”

While prices in Mumbai and the NCR peaked, sales volumes have been falling in the last six months. Bangalore has stabilised, but demand has been lukewarm in past five months. Chennai, on the other hand, continues to stagnate said analysts.

The number of projects launched during the festive season has also seen a huge fall. According to industry estimates, there has been a 50% drop in the number of launches of residential projects in Mumbai, the NCR, Bangalore and Chennai this year.

Source: http://www.hindustantimes.com/News-Feed/BusinessRealEstate/Real-estate-sales-to-dip-this-season-say-industry-experts/Article1-761941.aspx

Uncertainty looms over real estate projects in the city

As West Bengal witnessed power change in the state after 34 long years, the real estate projects in the city stood standstill waiting for new people to arrive and take charge. In the last one year, the city has witnessed fewer number of new project launches as compared to last year due to delay in approvals and clearances..

Pradeep Sureka, managing director of Sureka Group and President of the Kolkata Chapter of Credai, the real estate body, says, “This year the new supply in residentail segment has been significantly low as before the elections approvals had stalled and even now they are very slow. But in next 3-6 months we expect things to improve.”

According to data by international property consultant, Jones Lang LaSalle India, only 4600 apartments have been launched this year as compared to 8900 last year. In the second quarter of 2011, the market witnessed the launch of four projects, offering a total of 711 new units which includes the costliest project, Atmosphere offered by Forum Group.

Though project launches have been few, the realty market unlike other parts of the country has witnessed a jump in prices by almost 15-20 per cent.Mayank Saxena, managing director in Kolkata for, Jones Lang LaSalle, says, “Post 2009, developers in the city focussed mainly on sub Rs. 20 lakh homes, but now everyone is building bigger projects and prices have increased substantially. Last year prices in Ballygaunje, were around Rs 13000-14000 per sft which has climbed upto Rs 16,000- 17000 per sft.”

Also Rajarhat, has seen a price appreciation of 5 per cent in the secondary market and prices in the primary market have increased by 10-15 per cent.

Rahul Saraf, managing director, Forum Projects, says, “The last one year has been good for the residential market in the city unlike other cities and prices have appreciated by 20 per cent in most of the key micro markets.”

JLL report adds, “A dip in the absorption rate in the city is anticipated due to the steady upward movement of the capital values, which are likely to rise by another 2-10 per cent during the upcoming festival season.”

Rahul Todi, Managing director of Shrachi Realty, part of the Rs 800 crore Shrachi group, adds, “ Prices have appreciated in the city center by 15-20 per cent. Prices have not increased in any other city but the prices have largely been driven due to demand-supply gap in the city. This year only 5-10 significant projects have been launched and we expect the situation to continue like this for next few months.”

Todi expects prices in city centre to escalate more than Rajarhat which was pitched to be the next center of development in the state.

A research analyst from an international brokerage who did not wish to be identified said, “The real estate market in Kolkata is still in a very nascent stage but prices have started to escalated and both Unitech and DLF who have projects in the city are reporting healthy sales for its launched projects. Information technology (IT) service sector has not recovered completely thus Rajarhat is witnessing more vacancy than the other part of the city like Alipore or Ballygaunje, the hotspots for residential realty projects at present.”

Source: http://business-standard.com/india/news/uncertainty-looms-over-real-estate-projects-incity-/453457/

Real estate prices may shoot up in suburbs

BANGALORE: The city may be going high on the Metro, but there's more to cheer for citizens. Real estate prices along the Metro track are expected to accelerate capital values on the periphery as downtown land becomes scarcer.

The city's first Metro line from MG Road to Byappanahalli has a limited reach as of now, but a well-knit network connecting far-flung areas like Whitefield and Electronics City will boost land values by 15 to 20%, say real estate experts.

The action has moved from downtown to the suburbs. Metro connectivity to areas like Kanakapura and Mysore Road will see a lot of realty traction. Hence, price escalation on the periphery is sharper than in the Central Business District, said Irfan Razack, CMD of Prestige Group.

But experts don't rule out 10% to 15% jump in capital value in areas like MG Road and Indiranagar where the Metro is chugging along. Currently, MG Road and Indiranagar command capital values in the range of Rs 20,000 per sqft and Rs 15,000 per sqft respectively.

Real estate prices along the Metro will follow the same pattern as in Delhi where prices shot up by 15% to 20%, said Sushil Mantri, CMD of Mantri Developers.

With price-to-income ratio, the affordability measure for housing, increasing , developers are targeting customers buying a BMW, Audi or even an Innova for the Rs 1-crore-plus homes. Look at the waiting period for these cars, it merely indicates the buying appetite. Though there are concerns on the interest rate front, sales are quite robust, said JC Sharma, MD, Sobha Developers.

Prestige Sunnyside in Marathalli, Sobha Pristine and Mantri Glades on Sarjapur fit the bill as premium offerings. Times Property's seventh edition of 'Home Affairs' , being held in Bangalore on Saturday and Sunday, reflects a healthy appetite for mid-segment and premium homes.

Source: http://timesofindia.indiatimes.com/city/bangalore/-Real-estate-prices-may-shoot-up-in-suburbs/articleshow/10459998.cms