http://www.thehindu.com/news/national/k ... 416786.ece
This is the first hit by Chandrababu Naidu against Karnataka. Things are going to get really bad for Bangalore and Karnataka in terms of new investments and companies coming in. Naidu will offer major incentives and sops to industries and companies to invest in Andhra. And considering that the distance from Bangalore is not much - Anantapur , Chittoor are all in the 200 km range.
Siddaramaiah is least interested in development of Karnataka or Bangalore. All he is interested is giving free rice and milk to people. And to fund it , he will extract money from investors and companies.
Next 3-4 years, Bangalore RE will collapse. In addition, considering the World economic scenario, a RE bust is surely on. Waiting for a response from the RE bulls saying that prices will keep climbing and RE at these rates is a good investment
Hyderabad & Vijaywada
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Somashekarn
- Posts: 7
- Joined: December 2nd, 2011, 5:08 pm
Re: Hyderabad & Vijaywada
Somu
Only we read these kind of news in media(Hero Honda moving to chittoor, Amazon E-commerce business moving to Maharashtra due to taxation issue...etc.) and assume things will change in the near future. If we need to apply your logic, When proposed Nano Car project by Tata was moved to Gujarat, from the interested Dharwad zone, real Estate prices did not crashed in Hubli or Dharwad. Whereas when the High Court Circuit Bench was commissioned at Dharwad, Real estate prices were jumped 5 folds within 2 quarters around Hubli-Dharwad same period. BTW, High court circuit bench, did not made significant contributions towards new job opportunity or economic growth. Only those who were coming to Bangalore for the legal issues, got a relief. When BSY became Karnataka CM, prices around Shomoga were jacked up to 10 times. When Siddaramaiah became CM, the land prices in Mysore were jacked up by more than Rs. 1000. In Mysore, many MUDA/Approved vacant residential area prices are nearing Rs. 5000/sq.ft and every broker quotes Infosys. Whereas in reality, Infosys is a primarily for in house training of their staff with their own accommodation facility. The prices in these area is same as BSK 6th Stage, Anjanapura or Sir MV Layout. Apartment prices are also no different from Bangalore.
Whatever the things we read and assume have no relevance to the brokers and developers. If we pin point these factors to them, perhaps they will laugh and make fun of us. In the real estate world, market controlling Gorilla's have entirely different and illogical reasons to inflate the prices overnight. Some of the reasons for their price rise are like this...
1) If a supermarket comes to that area (Food world, Reliance Fresh, Big Bazaar, MK Ahmad..etc), price will be jacked up by Rs.500-1000/sq.ft.
2) If kaveri water comes to that area, price will be raised by 500/sq.ft.
3) if a branded educational institution/ hospital chain comes to the area, price will be hiked by Rs. 1000/sq.ft.
4) If a road widening project comes/Flyover or a BMTC TTMC terminal Comes to an area, price will be jacked up by another Rs. 1000/sq.ft.
5) If a good hotel/chain restaurant comes to the area, they hike the prices by Rs. 500/sq.ft.
6) If any major/branded apartment project comes to the area, price will be jacked up by Rs. 500-1000/sq.ft
7) If a celebrity buys a property in that area, prices will be jacked up by Rs. 500/sq.ft
8) If a metro project/extension is announced, price will be inflated by another Rs. 500-1000/sq.ft
9) If a property gets transacted in a Location at Rs. xyz price, the next property in the same location will be quoted at least 10-20% higher for no reason.
.
.
.
etc.
If the price at one area is increased, it will have chain effect on its adjoining areas also. That's how prices are increasing year on year. If we look at the Bangalore prices. at an average of 2-3 years, prices are doubling if we refer from the year 1995. In Bangalore, there are several thousand apartments still unsold/vacant. But no builder or broker is ready to cut price. In fact they revise the prices every quarter.
From the individual buyer perspective, I don't see any economics, job opportunity or development logics in relation with the above mentioned trends.
Only we read these kind of news in media(Hero Honda moving to chittoor, Amazon E-commerce business moving to Maharashtra due to taxation issue...etc.) and assume things will change in the near future. If we need to apply your logic, When proposed Nano Car project by Tata was moved to Gujarat, from the interested Dharwad zone, real Estate prices did not crashed in Hubli or Dharwad. Whereas when the High Court Circuit Bench was commissioned at Dharwad, Real estate prices were jumped 5 folds within 2 quarters around Hubli-Dharwad same period. BTW, High court circuit bench, did not made significant contributions towards new job opportunity or economic growth. Only those who were coming to Bangalore for the legal issues, got a relief. When BSY became Karnataka CM, prices around Shomoga were jacked up to 10 times. When Siddaramaiah became CM, the land prices in Mysore were jacked up by more than Rs. 1000. In Mysore, many MUDA/Approved vacant residential area prices are nearing Rs. 5000/sq.ft and every broker quotes Infosys. Whereas in reality, Infosys is a primarily for in house training of their staff with their own accommodation facility. The prices in these area is same as BSK 6th Stage, Anjanapura or Sir MV Layout. Apartment prices are also no different from Bangalore.
Whatever the things we read and assume have no relevance to the brokers and developers. If we pin point these factors to them, perhaps they will laugh and make fun of us. In the real estate world, market controlling Gorilla's have entirely different and illogical reasons to inflate the prices overnight. Some of the reasons for their price rise are like this...
1) If a supermarket comes to that area (Food world, Reliance Fresh, Big Bazaar, MK Ahmad..etc), price will be jacked up by Rs.500-1000/sq.ft.
2) If kaveri water comes to that area, price will be raised by 500/sq.ft.
3) if a branded educational institution/ hospital chain comes to the area, price will be hiked by Rs. 1000/sq.ft.
4) If a road widening project comes/Flyover or a BMTC TTMC terminal Comes to an area, price will be jacked up by another Rs. 1000/sq.ft.
5) If a good hotel/chain restaurant comes to the area, they hike the prices by Rs. 500/sq.ft.
6) If any major/branded apartment project comes to the area, price will be jacked up by Rs. 500-1000/sq.ft
7) If a celebrity buys a property in that area, prices will be jacked up by Rs. 500/sq.ft
8) If a metro project/extension is announced, price will be inflated by another Rs. 500-1000/sq.ft
9) If a property gets transacted in a Location at Rs. xyz price, the next property in the same location will be quoted at least 10-20% higher for no reason.
.
.
.
etc.
If the price at one area is increased, it will have chain effect on its adjoining areas also. That's how prices are increasing year on year. If we look at the Bangalore prices. at an average of 2-3 years, prices are doubling if we refer from the year 1995. In Bangalore, there are several thousand apartments still unsold/vacant. But no builder or broker is ready to cut price. In fact they revise the prices every quarter.
From the individual buyer perspective, I don't see any economics, job opportunity or development logics in relation with the above mentioned trends.