Realty Prices To See 10-12% Rise In '11 In Bangalore

Realty prices in Bangalore are expected to witness a rise of 10-12 per cent in 2011 on the back of rise in input prices along with hardening of interest rates. However, demand will remain strong with sound volume growth for most of the realty developers in the current calender year despite a possible rise in home loan rates. "Demand will remain robust and there will be sound volume growth in Bangalore as the interest rate hike will not substantially increase home loan rates," Mr Sushil Mantri, president of Confederation of Real Estate Developers' Association of India (CREDAI)-Karnataka said. He also said that there was minimal inventory level in Bangalore market after encouraging absorption last year. Referring to South Indian market, he said there was no noticeable rise in property prices like Northern and Western part of the country in the last one year. "Price rise in last one year was around five to 10 per cent across properties last year," Mantri said. However, he said operating margin would be under pressure this year on the back of rising commodity prices. 

31 Jan 2011 Business Standard