Property Rates in BangaloreThird Quarter of Current Year

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Property Rates in Bangalore in Third Quarter of
Current Year
The first quarter of this year may have been
rather uneventful pertaining to the price of
Property in Bangalore, the cities real estate
prices at a few localities did inch forward, but
just an inch, posting no gains to write home
about but nothing to indicate anything ominous
either.
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The trend described above may indicate that the
markets as yet are tentative regarding the future
direction of real estate property in Bangalore,
unsure whether this is a buyers market or a
sellers market, prices may simply have risen
slightly just as prices of real estate are
expected to gradually rise over time. Some parts
of the city posted gains in prices that were
higher than in other parts of the city, yet real
estate prices in a few regions of the city did
fall moderately. Ostensibly, there is no likely
trend and the market may simply be ambling along
largely unconcerned with the activity of buyers
and sellers.
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However, what may the market be covertly trying
to show us? In many ways, to those who listen,
the market reveals what is really going on. One
signal the market is telling us may be gleaned
from the price of readymade property versus
property in Bangalore that is still under
construction. It would seem that the price of
readymade 2 3 BHK flats in Bangalore has
dropped in price compared to the price of
similarly sized flats which are still under
construction. Whereas the difference between the
prices of the completed homes and those still in
the process of being completed was 6 percent in
the final quarter of last year, in the first
quarter of this year the difference was only 5
percent.
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As largely, the price of ready to move in 3 and 2
BHK flats in Bangalore has appreciated, one can
safely assume that since the price difference
between the prices of ready to move in flats and
that of those under construction has narrowed,
the price of flats in Bangalore that are under
construction too has gone up. Hence, we may
guess that the price of property in Bangalore
that is still under construction too has largely
appreciated. This is good news for builders in
Bangalore they can now off load their inventory
which is still under construction at a higher
profit when they decide to sell at some future
date. Its also good news for those who bought
these upcoming projects in Bangalore as mostly
likely many such buyers have already seen the
value of their investment rise in value.
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Of the many such projects in Bangalore that are
still in the process of being completed, not all
units may have as yet been sold, those which are
still with the builder today provide a much
valued and appreciating asset to the builder.
Those flats in Bangalore which are under
construction and in the hands of private
investors can be sold by the same in the
secondary market at a modest gain. Yet the
direction of real estate in Bangalore, the future
trend extrapolated from current trends, may
actually point towards greater demand for Luxury
apartment in Bangalore in the third quarter. In
the third quarter we may find the price
difference between ready to move in property and
property under construction to narrow further and
the price of both to appreciate, as it has likely
done in the first quarter of 2016. Though the
gains may be modest, property rates in Bangalore
in the future are likely to point upwards.