‘Sell for discount’ – the latest mantra in Bangalore - Dreamz infra News

Bangalore

Would you like to get a special discount on your apartment? Sell for the developer and reduce the inventory. Yes, this is the new strategy being adopted by both the buyer and the developer.

Veena Maheshwari, a former HR professional quit her job to become a homemaker in December 2012. When the 30 plus couple decided to go in for a 2BHK with study, they struck up a deal with the developer. For every sale that Maheshwari makes they would be given a discount of a little less than one per cent. This amounted to about Rs 50,000 per sale.

“I reached out to my Bangalore network, re-visited all the business meets and other networking events, contacted them individually later and marketed the project. I also extended my sales network to include my NRI relatives and friends. At the end of the exercise was success and I got a good price from the developer,’’ recounts Maheshwari. “Additionally, I also got other facilities due to my close interaction with the builder, like a good carpenter, electrical lines and points to fit my requirements, minor structural change to include a slightly larger balcony with special granite slab fitted for a barbeque area and free gym and club membership.’’
This is not an isolated case. There are several developers who have adopted this method to offload their piling inventory. Take the case of a mid-segment player like Green Hill Developers, a company known to finish and handover the keys within the set time.

“With our established reputation to deliver on time, the pressure to sell our few remaining apartments mounted in our latest Kundanahalli project. In July 2013, we decided to give special discounts to buyers who could get another to invest in the unsold apartments. With this approach we hit success almost instantly,’’ recounts Ashok Mathur, Sales & Logistics Head, of an Developement Co. “Within a few weeks, we got a customer, who booked three apartments – for himself, his NRI brother and his in-laws. This started a deluge and today cementing and laying of tiles is in full swing, with our target of 24th Dec 2013, to hand over the keys, very achievable.’’
“Adopting this method of sales is extremely profitable for all parties, as there is a personal stake involved at all levels of the transaction,’’ states Maheshwari.

Source - toi

Bangalore rental values show interesting trends -A Dreamz infra survey

Bangalore

Rental values in Bangalore witnessed some interesting trends in the Apr-Jun 2013 quarter. Localities like Koramangla, Banshankari Stage 2 and Yellahanka recorded a rise in rental values. Koramangla and Banashankari Stage 2 grew by 10 per cent each, while Yellahanka reported a 9 per cent increase in rental values as compared to the quarter ending March 2013.

“Land pockets in Koramangla and Yellahanka are now saturated. The existing supply has to cater to the demand,’’ states Balakrishna Hegde, MD, Of an Realty. “Overall the rent values haven’t really increased. What we are witnessing is an expected marginal fluctuation in the said months.’’
What works in favour of places like Yellahanka and Koramangla is the location.

“Koramangla has very good infrastructure. It is strategically located and almost all main roads in this locality have got commericalised. All these factors are driving the residential market of this locality,’’observes Ravindra Madhudi, Director, of an Realty. “Also, as it is an upmarket area, C-level professionals transferred to Bangalore, prefer to rent houses in the area. This has boosted the rental market of Koramangla.’’

In contrast, rental values in localities like JP Nagar VII Phase, Kanakpura Road and Cambridge Layout have witnessed a significant drop, as compared to the Jan-Mar 2013 quarter. While JP Nagar VII Phase and Cambridge Layout recorded a drop of 7 per cent each, Kanakpura Road reported a 5 per cent fall in rental values.

Places such as JP Nagar and Jayanagar are targeted by the traditional rich. These include several expats and Kannadigas returning home. This segment prefers to buy and doesn’t mind paying extra for the locality. Hence, a house put up for rent, however big, cannot command a big price, as it is not perceived as attractive,’’ states Abhijit Badrinath, Proprietor,of an Real Estate Co.With regards to Cambridge Layout developers attribute an `age-factor’ to the fall in rental values.

Development in Cambridge Layout hasn’t kept up with the rest of the neighboring localities,’’ observes Rawal. “Not only does it have bad infrastructure, the buildings in the area are ageing. These two factors have contributed to down-valuing the locality by the emerging IT segment which primarily drives the rental market in Bangalore.

Source : TOI

Improved infrastructure leading to development in Bangalore West

Bangalore west is a market that is coming of age. One of the early residential areas with industrial growth, this region has now opened out to witness stand-alone commercial and integrated developments. Connectivity has led to a significant boost in the development of this region – the Tumkur Road highway, improvements to Mysore Road and Magadi Road with connectivity enhanced through the Outer Ring Road (ORR). With the Metro line soon to be inaugurated between Peenya and Sampige Road, commercial property development will receive another boost.

Ram Chandnani, Deputy Managing Director – South India, CBRE South Asia, elaborates, “Localities in Bangalore west lie within an 8-10 km radius from the Central Business District (CBD), along with the required social infrastructure growth. Over the years, it has primarily developed into a residential hub with Rajajinagar, Basaveshwaranagar, Malleswaram, Yeshwanthpur, Mathikere, Mahalakshmi Layout, Nandhini Layout and Chandra Layout being some of the prominent localities. Although currently not seeing much commercial development with the exception of a prominent mixed development project, this is expected to change with Metro connectivity and quality residential developments coming in.”

“Commercial development in Bangalore west is still at a very nascent stage with handful of Grade A developments. Office space in this micromarket is typically characterised by Grade C standalone buildings having average size of 10,000 sqft,” says Naveen Nandwani, Director – South India, Cushman & Wakefield.

Factors pushing commercial growth

According to Ram, factors pushing growth in this micromarket are future Metro connectivity, rise in Grade A residential developments, enhancement in social infrastructure, proximity to the airport, improvement of infrastructure through the NICE corridor, State Highway development projects connecting to Mysore, and industrial development in Kumbalgodu, Kengeri and Bidadi.

He adds, “Owing to these, Rajajinagar, Magadi Road, Jalahalli and Mysore Road have emerged as commercial hotbeds. Some emerging trends in the region are mixed use developments promoting the ‘walk-to-work’ concept, small to mid-sized stand-alone commercial buildings which are more suitable for corporates looking for smaller office spaces, and tech parks due to proximity to Mysore, residential catchments of west Bangalore and the NICE corridor.”

Naveen explains, “Considering the commercial space market, the west still remains largely unexplored. Office space developments in this quadrant are still to witness growth on the lines of commercial development in Electronics City, Whitefield and now along the ORR belt (Sarjapur Road to Hebbal). Further, areas such as Mysore Road with sizeable land parcels are yet to see significant growth in terms of residential catchments and support infrastructure. However, Mysore Road was the first to witness quality supply in 2001 followed by Malleswaram in 2010.”

With connectivity augmented through various civic infrastructure projects such as the upgraded NH-4 and the upcoming Metro line, this region is opening up to further residential, industrial, commercial and retail growth. “The rise in the popularity of this micro-market can be attributed to three key reasons – the availability of land parcels that provides room for future development of healthcare, entertainment and other aspects of social infrastructure development; large and steadily growing industrial hubs as economic activity is directly correlated to residential growth; and improved connectivity through the NICE Ring Road that provides easy access to Hosur,” Ram states.

Bangalore west — scenario

Research by Cushman & Wakefield indicates that Grade A office space in the west comprises SEZs and other commercial spaces. SEZ space accounts for close to 48 percent of the total stock in the west. Operational Grade A commercial office stock measures around 3.3 million sqft with no under-development stock currently.

Other office space buildings primarily belong to the Grade C category. The organised office space development in the region stands at three percent of the total stock.

Naveen explains, “Companies already present in this micro-market and looking to expand in quality commercial spaces are moving towards locations such as the ORR. This is due to competitive rentals, proximity to residential catchments, and good connectivity to central and suburban locations of the ORR belt.”

Areas with potential

Naveen says, “In the long run, Mysore Road can be anticipated to emerge as a commercial destination due to availability of land, upcoming Metro and connectivity through NICE Ring Road.”

“Areas with potential as future commercial hotspots in the west are Mysore Road, Magadi Road, Rajajinagar, Tumkur Road and Jalahalli,” Ram adds.

Source: Times Property, The Times of India, Bangalore