REALTY MARKET IN BANGALORE


THE SALE OF APARTMENTS HAS SLOWED DOWN DUE TO ABNORMAL PRICES AND DWINDLING OF THE DEMAND.  THE RENT SCENARIO IS MUCH WORSE.  THE RETURN ON INVESTMENT IN RESIDENTIAL BUILDING IN THE FORM OF RENT AFTER THE MAINTENANCE AND TAXES IS 2% TO 8% AND IN COMMERCIAL BUILDINGS, IT IS 2% TO 16% AND IN INDUSTRIAL BUILDINGS, IT IS 0% TO 5%, DEPENDING UPON THE LOCATION, SIZE, OWNERSHIP, TITLES,ACCESSIBILITY, AVAILABILITY OF INFRASTRUCTURE AND FINANCIAL ASSISTANCE.

BUYING A B KATHA APPEARS TO BE A VERY RISKY AFFAIR IN BBMP LIMITS.  

THE RULING INTEREST RATE ON HOME LOANS IS 9% TO 10% IN STATE OWNED BANKS AND MNC BANKS, WHEREAS IT IS SLIGHTLY HIGHER IN PRIVATE FINANCE COMPANIES.  

THE APPRECIATION OF VALUE OF PROPERTIES IS ANYWHERE BETWEEN 1% TO 12% P.A. 12% APPRECIATION IS FOUND ONLY IN 5% OF THE TOTAL PROPERTIES TRANSACTED.  HENCE, A HIGHLY CALCULATED DECISION IN THE PURCHASES WILL SECURE THE FINANCIAL STABILITY OF THE BUYER.