Personal Finance

Credai expo in Bangalore

OUR BANGALORE CHENNAI BUREAUS | Updated on April 23, 2011 Published on April 23, 2011

Busy time at Credai expo.— G.R.N. Somashekar   -  BL

It is a plethora of choices for the property-seeker in Bangalore, with the annual two-day realty expo organised by the Confederation of Real Estate Developers' Associations of India (Credai) – Bangalore, starting Saturday.

About 44 developers would showcase their projects at the expo spread over a 60,000-sq-ft of air-conditioned space with parking space for about 4,000 vehicles with 10,000 visitors expected.

The confidence of the buyers in the real estate market is obviously back in Bangalore, which saw a dip in demand during the slowdown post a couple of years back. Developers seem to have gone back to the mid-market residential segment consisting of apartments in the Rs 60 lakh – Rs 80 lakh which was popular prior to the downturn. The affordable housing segment was nearly absent, at least, at the expo.

“Sale prices have gone up about 20 per cent between last year's expo and now. The demand is good. This is the right time to buy,” Mr Sushil Mantri, President, Credai – Bangalore, told Business Line. But prices are still 20 per cent lesser than the 2007 prices, he said.

Rising input costs

However, a big concern for the industry as a whole is the ever-increasing input costs. Input costs have gone up 20 per cent now, with aggregate prices increasing almost four times, pointed out Mr Mantri. Cement prices have doubled, while steel prices have gone up 30 per cent. “Property prices will go up further, if the Government does not intervene in bringing down the cement prices,” he added.

Credai – Bangalore was also making all efforts to push for a single-window plan approval process, said Mr Mantri. “The State Government has such a mechanism for industries, and the same system can be brought to housing too,” he added. Plan approvals take almost six months to a year now, which could be reduced . For scrutiny of drawings, officials take one-two months now, said Mr Mantri, adding that this has been enabled by the new software that the officials use now.

ASK Investments partners Real Value

ASK Real Estate - Special Opportunities Portfolio 1 has invested Rs 50 Crore in a company promoted by Real Value group, a Chennai-based developer.

According to a press release from ASK, the real estate project at Kottivakaam is a residential development of 6.75 lakh sq.ft. spread over 4.32 acre near Taramani Railway station close to the Old Mahabalipuram Road. This is fifth investment by the fund since 2009 when it was raised as a residential development focussed domestic fund.

The project's proximity to landmarks like TIDEL Park, Cognizant, Asendas IT park, RMZ Millenia Business Park and SP Infocity adds value as it can cater to buyers in leading IT companies located in these IT parks.

Real Value promoters have been part of the Chennai development landscape for the last 16 years. They have developed and delivered over 2.5 million sq. ft till date.

The release quoting ASK Property Investment Advisors' CEO and Managing Partner, Mr Amit Bhagat said, “We are pleased to associate with the Real Value promoters for this landmark project in an established growth corridor in Chennai.”

ASK Investments sees Chennai as a strong and less volatile residential market. With this investment the portfolio has committed 80 per cent across Pune, Delhi NCR, Chennai and Bangalore. In terms of investment timelines, this is well within the committed horizon of 24 months. The fund sees more investment opportunities in cities such as Mumbai, Delhi and Bangalore.

V. S. Suresh, Managing Director and Promoter of Real Value group, said “We want to create an iconic project within city limits which will be appreciated by our customers.”

Published on April 23, 2011

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