The moneyed in Bangalore are still buying despite surge in prices of
property. Amber Maheshwari, director of real estate consulting firm
DTZ, said, "There has been no slowdown in demand for the Rs 2.5
crore-plus homes. People who can afford these homes are from the affluent
segments that are not impacted by inflation or higher interest rates."
That should be music to the ears of real estate developers catering
to the premium luxury segment, for the margins these projects earn are
way over those managed by the mid- and lower segment residential projects.
In sharp contrast, mid-segment projects, priced below Rs 1 crore, have
seen a slump in both prices and demand. Real estate consultants blame
this on the economic conditions, which are eroding the disposable incomes
of people.
According to a recent study by real estate consultancy Asipac in eight
major cities, the average price in the luxury segment has actually increased
by 5% to 10% compared with a dip in the prices of mid-segment apartments
in the first half of 2008. Amit Bagaria, chairman, Asipac said, "Luxury
homes from reputed and established developers have done quite well,
and prices are on an upward trend." A source said NRIs (Non Resident
Indians) are the biggest drivers for this increase in demand for luxury
homes. NRI sales have picked up by 10-15% this quarter.
