One lakh apartments may remain vacant in Bangalore by April

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One lakh apartments may remain vacant in Bangalore by April

Post by Admin on Sun Feb 24 2008, 13:13


Bangalore: Bangalore is witnessing a slowdown in real estate market. The number of unoccupied apartments in and around the city is expected to touch nearly one lakh by April, reports The Hindu.

Citing the outcome of an "informal survey," Inspector-General of Registration and Commissioner of Stamps H. Shashidhar said that these indeed were the current market trends. He was speaking at a workshop organized here by the Building and Other Construction Workers' Welfare Board.

Later, he said that the figure included both old and new apartments - those that had not been sold, those that had not been rented out and those now under construction. Shashidhar said that registrations of property in the State had reduced by 45 to 50 percent, partially due to the ban on registration of revenue sites.

Lack of infrastructure such as proper roads, drinking water supply and availability of schools had also contributed to the slowdown in property transactions. Moreover, people had become cautious while buying property and choosing only those, which had clear titles.

It seems that speculative investors keep away from buying the apartment and that only genuine users were buying the properties now, Shashidhar said.

Confirming the slump in the market, Feroze Abdullah, realtor and proprietor of Feroze Estates said his own business had seen a 50 percent drop during this period. "There is more supply than demand. Prices in the last three years have risen unnaturally and the market is now seeing a leveling. But in the central districts, the prices are still high."

The slump is attributed to the factors like unrealistic prices, poor infrastructure and traffic problems. However, the builders have not reduced the prices of apartments hoping that they may pick up once the new airport commences its operations.

But according to A. Balakrishna Hegde, President of Karnataka Ownership Promoters Association, the industry was expected to grow at a rate of 15 percent this year and refuted any suggestion of a slump.

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Re: One lakh apartments may remain vacant in Bangalore by April

Post by ashwini on Sun Feb 24 2008, 14:10

finally a sign of relief....what say guys

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