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.
