Registrations galore for high value properties in Bangalore
Is price worth the hike in status and pride, which is generally accompanied by a high value home? The answer to it depends on one’s need, and builders in Bangalore cater them.
Modern day high-net worth properties pack in a whole bunch of features in order to meet the growing aspiration of the home-buyers who wish to shine back their financial and social standing through their house. For starters, high-end properties come in various forms namely- penthouses, bungalows, apartments and villas often bearing close proximity to a green stretch or gold course.
In the last few quarters, a great deal of luxury and premium residential units in the Silicon Valley of the nation have been properly conceptualized and tactically marketed. This has fuelled the rise is in registration of high-net worth properties in the city, significantly. The present day high value homes run counter to yesteryears premium homes, which defined luxury based on two factors- strategic location and space.
Property registration speaks of numbers
According to statistical data and market reports, every one in three buildings in the city would be a high-value property that would run between Rs 2.5 crore- Rs 4 crore. In a move to create news, the number of high-value property registrations, ranging between Rs 1.5 cr-Rs 5 cr), in the state have gone uphill in the last decade.
The sudden increase can be pin on to a general hike in property values in Bangalore and a rise in the interest in the real estate sector among the non-resident Indians. In support of the increasing number of luxury unit buyers, around 4384 high-net worth property registrations were recorded in the financial year 2012-13, that fetched a lump sum of Rs 865 crore, thanks to registration and stamp fee.
In the year 2003-04, mere 72 high-net worth properties were registered that brought in around Rs 12 crore. However, in coming times, the city has bear witness to more than 3274 property registrations in high-value price bracket, during the timeline 2011-12.
Market expands despite unfit factors
According to Department of Stamps and Registrations, despite the economic slackening in 2008-09, high-value property registrations have mostly been recorded in Bangalore and other prime cities in the last decade. In addition to adverse conditions, although the guidance values have been revised thrice since 2003, the number of luxury property registrations did not take a dip.
How did the falling rupee play a crucial role in high-value property registrations?
The hike in the price of properties has somewhat ran between 10-15% in the last 2 years. However, with the fall in rupee value in the last few quarters, a large number of NRIs have worked their way inside the real estate sector of the city.
Despite the appreciation of land rates (3-4 times), which eventually fired up the general price of properties, NRI investment in high-net worth homes in Bangalore has taken off against all odds. High-value properties kick in around 16 percent of the overall revenue earned, albeit, mid-segment houses( ranging between Rs 10 lakh- Rs 1 crore) provide a reasonable chunk to the revenue.
Who are the buyers?
Luxury market is mainly driven by the IT professionals in the Garden City. This explains why Whitefield meets the luxury housing concept for the homebuyers in Bangalore. To add to it, NRIs making their comeback in their country is also a point to ponder in this regard, since they account for 40% of the high-net worth property market.
