Bangalore real estate: Buyers hesitant, expect prices to fall -

No artificial hike, so rates will not come down: Jain HeightThe company, with a land bank of about 80 acres in Karnataka, has plans to launch three projects – residential, hospitality and commercial – by October this year.

Bangalore, July 6 There is good demand in the real estate sector, but it has not translated into successful transactions because people are hesitant to buy now expecting a fall in prices in the future, said Mr Kishore Jain, Managing Director, Jain Heights and Structures Pvt Ltd, a Bangalore-based real estate company.

However, prices would not come down owing to high input costs.

“Contrary to what has been said about the Bangalore real estate market, prices have not been artificially hiked here,” he said.

According to him, the repo rate hike by the RBI is a good move to check the inflationary pressure gripping the country’s economy right now. As a fallout of the current economic scenario, speculators are shying away from the real estate market, Mr Jain said.

“This is the right time to buy for genuine buyers,” he added.

Future plans

The company, with a land bank of about 80 acres in Karnataka (of which, about 70 acres are in Bangalore), has plans to launch three projects — residential, hospitality and commercial — by October this year.

The residential project would be affordable housing at an investment of about Rs 70 crore at Toranagallu in Bellary district of Karnataka. About 1,000 units — single and double-bedroom apartments — would come up here, Mr Jain said. “We are awaiting approvals,” he added.

The company also has plans to launch a similar affordable housing project in Bangalore in the beginning of the next financial year, “but nothing has been firmed up yet,” he said. However, a 15-acre land for the same has been acquired, where “we will be able to develop 2 million sq ft,” he added.