Real Estate – slow down in demand?
The much anticipated but never talked about slump in real estate prices seems to be arriving. A short journey around all those places which were hub of construction activity gives a good idea.
The big slump in demand is evident from all those high rise apartments that are complete and waiting for buyers. Two years ago when Prestige group launched Shantiniketan project near ITPL, it was sold out on the same day when the bookings were opened! Things are much different now and the demand-supply equation seems to be tilting towards buyers. It is easy to find a ready apartment in areas like Marathahalli-ITPL stretch, Bellandur-Marathahalli stretch and JP Nagar 7th Phase. There has been word that it is a similar story in Mysore, where land prices had shot up considerably a year ago but there are few takers of late. But of course, no one wants to talk about it, be it developers or even the media.
However, prices, though have remained stable, do not seem to have come down much along with excess supply. And there are plenty of new projects coming in too. North Bangalore is now becoming a new hub of construction activity. It might probably take a few more months or even a year of low-demand until the prices start looking down. Or if there is a fresh wave of demand like last few years, a reduction in prices may never happen.
Have you been house hunting lately? What are your experiences?