Jan-Mar 2014 Bangalore Residential Property Prices for Sale

Bangalore is the one of the top metro city and IT hub of India. The population of Bangalore / Bengaluru was 4 Million people in 2001. But currently the population reached to 10 million. Bangalore is also ranked at number 3 spot in India in terms of most populous city. Below are the Jan-Mar 2014 Bangalore Residential Property for Sale Prices.

#	Location	Price Range (Rupees./Square feet)	Average Price (Rupees./Square feet)
1	AECS Layout	-	-
2	Akshaya Nagar	3,356-4,448	3,902
3	Amrutahalli	4,404-4,883	4,644
4	Anekal	2,511-2,849	2,680
5	Arakere	4,075-4,615	4,345
6	Attibele	2,304-2,426	2,365
7	BTM Layout	4,734-5,897	5,316
8	BTM Layout Stage 1	-	-
9	Babu Sahibpalya- Hennuru	3,880-4,269	4,075
10	Banashankari	6,880-7,438	7,159
11	Banashankari Stage 2	6,556-7,875	7,216
12	Banashankari Stage 3	5,747-6,517	6,132
13	Banasvadi	4,397-5,199	4,798
14	Bannerghatta Road	4,307-4,483	4,395
15	Basavanagudi	-	-
16	Begur Road	2,612-5,429	4,021
17	Bellandur	4,603-4,854	4,729
18	Benson Town	8,009-9,438	8,724
19	Bomasandra	2,912-3,806	3,359
20	Bommanahalli	3,881-4,296	4,089
21	Borewell Rd	3,443-3,770	3,607
22	Brooke Field	5,013-5,400	5,206
23	CV Raman Nagar	4,419-4,919	4,669
24	Cambridge Layout	-	-
25	Channasandra	3,035-3,410	3,223
26	Cookes Town	7,517-9,291	8,404
27	Cox Town	6,187-7,679	6,933
28	Devanahalli	3,725-4,563	4,144
29	Doddaballapur Road	3,779-4,104	3,941
30	Doddanakkundi	4,347-4,834	4,591
31	Domlur	6,984-8,866	7,925
32	Electronic City	3,284-4,090	3,687
33	Frazer Town	7,440-9,214	8,327
34	G M Palya	-	-
35	Gottigere	3,226-3,695	3,461
36	HBR Layout	4,105-4,436	4,271
37	HRBR Layout	5,104-6,017	5,560
38	HSR Layout	4,729-5,353	5,041
39	Hal 1-3 Stage	3,689-4,591	4,140
40	Harlur	5,087-5,569	5,328
41	Harlur Rd	5,395-5,694	5,544
42	Hebbal	5,628-6,163	5,896
43	Hebbal Kempapura	-	-
44	Hennur	3,644-3,863	3,753
45	Hennur Main Road	4,192-4,456	4,324
46	Hennur Road	4,479-4,772	4,625
47	Hesara Ghatta	3,749-4,274	4,011
48	Hoodi	3,738-4,126	3,932
49	Hormavu	3,611-3,948	3,780
50	Hosa Road	3,435-3,752	3,593
51	Hosur Road	4,008-4,356	4,182
52	Hulimavu	-	-
53	ITPL	3,859-4,182	4,020
54	Infantry Road	-	-
55	J.P. Nagar Phase 9	3,188-3,539	3,364
56	JP Nagar	4,378-4,639	4,509
57	JP Nagar Phase 1	-	-
58	JP Nagar Phase 5	5,052-5,835	5,444
59	JP Nagar Phase 6	5,182-5,658	5,420
60	JP Nagar Phase 7	4,896-5,414	5,155
61	JP Nagar Phase 8	3,719-3,899	3,809
62	Jakkur	4,881-5,393	5,137
63	Jalahalli	3,680-3,986	3,833
64	Jalahalli Cross	3,167-3,797	3,482
65	Jaya Nagar Block 1	-	-
66	Jayanagar	8,299-10,600	9,450
67	K R Puram	3,423-3,578	3,501
68	Kadugodi	3,419-3,652	3,535
69	Kaggadaspura	3,751-3,967	3,859
70	Kalyan Nagar	3,623-4,303	3,963
71	Kammanahalli	-	-
72	Kanakapura Road	3,739-3,856	3,797
73	Kasavanahalli	4,377-5,099	4,738
74	Kasturi Nagar	4,624-5,087	4,855
75	Kengeri	3,187-3,564	3,376
76	Kengeri Main Rd	3,035-3,337	3,186
77	Kodi Halli	-	-
78	Konenakunte	3,017-3,225	3,121
79	Koramangala	7,263-7,820	7,541
80	Koramangala 2nd Block	-	-
81	Krishnarajapura	3,591-3,947	3,769
82	Kudlu	3,943-4,394	4,169
83	Kudlu Gate	3,452-3,776	3,614
84	Kumaraswamy Layout	4,407-4,914	4,660
85	Kundalahalli	3,775-4,102	3,939
86	Lavelle Road	15,491-20,105	17,798
87	MG Road Area	11,741-14,117	12,929
88	MS Pallya	3,439-3,592	3,516
89	Magadi Road	4,996-6,259	5,628
90	Mahadevpura	4,830-5,205	5,017
91	Malleswaram	11,605-12,663	12,134
92	Marathahalli	4,322-4,683	4,502
93	Marathahalli-Sarjapur Outer Ring Rd	5,235-6,109	5,672
94	Mathikere	4,429-4,862	4,646
95	Murugesh Palya	-	-
96	Mysore Road	3,806-4,075	3,941
97	Nagarbhavi	3,218-3,774	3,496
98	Nagawara	0-20,180	9,740
99	New Tippasandra	-	-
100	OMBR Layout	4,601-5,083	4,842
101	Off Tumkur Road	3,069-3,474	3,271
102	Old Airport Rd	5,339-6,144	5,741
103	Old Madras Road	4,417-4,677	4,547
104	Outer Ring Rd	5,165-5,492	5,328
105	Padmanaba Nagar	4,569-5,569	5,069
106	Panathur	4,291-4,623	4,457
107	Peenya Industrial Area	2,845-2,879	2,862
108	RMV Extension Stage 2	5,184-6,668	5,926
109	RMV Stage 2	7,118-8,506	7,812
110	RT Nagar	4,146-4,578	4,362
111	Rajarajeshwari Nagar	2,326-7,989	5,157
112	Richmond Road	-	-
113	Richmond Town	-	-
114	Sahakar Nagar	4,723-5,921	5,322
115	Sanjay Nagar	6,710-7,446	7,078
116	Sarjapur	-	-
117	Sarjapur Road	4,271-4,449	4,360
118	Sarjapur-Attibele Road	2,662-2,919	2,791
119	Silk Board	3,517-3,699	3,608
120	Singasandra	3,474-3,695	3,584

Source: MagicBricks

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Bangalore’s Prime Locations catering to Residential Properties and Lands

This article edifies the fact about those hot locations which are most preferred when it comes to residential property, land and housing needs. The article gives details about few locations in Bangalore which have been rendering the best connectivity to the workplace and also has offered the quality of life in terms of socialization and entertainment. Further the article also talks about the land and its appreciated price in various locations within the city.

The investments in the real estate sector were going on a mere slow down but with improving economic condition and the emotional strength has controlled the sentiment of the investors. The investments in land and property both will see an increase in the time to come and this revival could happen in the coming quarter of 2014.

Residential Homes (Apartments / Flats) in Bangalore

There are numerous locations in Bangalore which are upcoming and emerging as centers for growth and are also the promising hubs providing better living in terms of residential housing. The hunt for a housing apartment is indeed a most challenging task for any individual and with the uprising prices it has become all the more difficult to crack an affordable deal. A dream house such that is affordable which burns a lesser hole into the pocket and also is well connected to the workplace and other useful amenities and facilities on a daily basis.

The massive expansion is visible in the areas like Electronic City, Hebbal, Marathahalli and Whitefield etc. Each of these emerging centers is discussed below: 

Hebbal, Bangalore

Hebbal once known for its serene beauty but now with the advancement and the development of infrastructure a lot of IT pathways and pharmaceutical set ups have made this region of Bangalore attract a lot of prospective and potential buyers when it comes to buy residential apartments. The area was better known for the serpentine maze of flyovers that networks the Outer Ring Road and Bellary Road. Various business have made this area a better location for trading as the culture of the city is work and live, it also has better road connectivity to some of the major business routes.

The residential property rates of a multistory apartment are around Rupees 5,896 per sq. ft. Hebbal host a lot of IT companies like Astra Zeneca, Integra Micro Software etc. This has changed the semi-urban neighborhoods in the vicinity of Hebbal and Kempapura into an expansive modern housing and apartment hub. Therefore it’s one of the reasons it has attracted a lot of real estate developers with various luxury residential projects catering to many big investors and potential Buyers.

Hebbal has the two major IT hallways one being the Manyata Embassy Park and the other is the Kirloskar Park which has employed a lot of IT professionals making it one of the reasons to be densely populated. Many other projects are in a pipeline under the residential housing segment.

Whitefield, Bangalore

While choosing a residential location it is really necessary that one should look for a location which is near to the workplace this will also save time and add on to the work efficiency. The Whitefield location of Bangalore was a Euro-Asian settlement. Whitefield has the major IT Hub in the name of ITPL which is a shelter for the world’s major IT and ITES Companies. The area remained quite dormant during the 2000s. The residential property rates of a multi-story apartment in Whitefield range around Rupees 4,861 per sq. ft.

Whereas the residential property price in ITPL is Rupees 4,020 per sq. ft. The location is known for its lush greenery and well aligned trees. It has been an opportunity for various developers to come up with projects offering big spacious and world class residential apartments with 2BHK and 3BHK spacious setting. Various developers have come up with communities promising better lifestyle with Swimming pools, Club house, Children’s play area etc.

Marathahalli, Bangalore

Marathahalli has been the lonely village during the 1990s until the IT boom; it has been emerged as a self-sufficient area. Marathahalli is closely connected to area like Hal Airport Road, Whitefield, Sarjapur Road and Electronic City. As IT expansion is at a peak these areas are a house of various IT offices like Eco space at the Outer Ring Road, Accenture, Intel and Wipro at Sarjapur Road. Marathahalli has all the basic facilities in terms of cloth stores, shopping malls, super markets and other shops of basic necessity.

The residential property rates of a multistory apartments is around Rupees 4,502 per sq. ft. in Marathahalli whereas the residential property prices are a little high on the Outer Ring Road costing nearly Rupees 5,672 per sq. ft. Various developers have come up with residential projects both under the category of low-cost housing and luxury housing offering 2BHK and 3BHK spacious setups. Catering to the young crowd and professionals of the IT industry these communities provide an array of amenities like Club house, Swimming pool, Recreation area for children, Parks and Playgrounds ensuring better living standard.

Electronic City, Bangalore

Electronic city has also been the hub for the emerging IT strength as it caters to the numerous big IT names of Wipro and Infosys. It is the house of major IT and ITES players like BOSCH, Toyota, Honda, BMW, Volkswagen BHEL, Tech Mahindra etc. Due to these major players residing there the residential strength is likely to increase in the time to come. Several developers have come up with various affordable residential communities rendering to the basic needs of people with the combination of 2 BHK and 3 BHK apartments.

The upcoming gated community in this area will render various amenities like club house, swimming pool and play grounds etc. The average residential property rate of a multistory apartment is around Rupees 5,672 per sq. ft. Electronic city is still emerging and in the coming time it will see more development in terms of shopping spaces, entertainment hubs and other social as well as hot spots.

LANDS (Plots / Sites) in BANGALORE

The IT Hub of the country has a potential supply of land when it comes to IT infrastructure, commercial and retail set-ups. The land prices have been stagnate in the past but with the improving economic conditions the real estate developers have also made hopes that the land price may increase during the other half of the year. When it comes to invest in the land various areas are thought about.

The latter part of the article talks about the locations like Devannahalli, Mysore Road and Electronic City inclusive of Anekal and Chandrapura.

Devanahalli Lands (Plots / Sites)

Devanahalli is an excellent upcoming city in the near future. With the expansion of KIDB industrial area which has big players like Aero Space, Software Park and Hardware Park along with many Financial Units in the pipeline. As the Bangalore International Airport is set up in Devanahalli the area is developing at a rapid speed. These developments on the other hand have increased the demand for industrial land. Various developers have come up with an idea of creating this place as new Bangalore in the Northern region as this area enjoys the nearness to the international airport and also the Hyderabad Highway. The land prices in this area range close to Rupees 550 per sq. ft. to Rupees 600 per sq. ft.

Mysore Road Lands (Plots / Sites)

Mysore Road is a state highway which connects the city of Mysore and Bangalore. The highway stretches around 149 Km. The highway possess a better connectivity through the towns of Ramanagara, Channapatna, Maddur, Mandya and Srirangapatna etc. The road passes over Kaveri River and is a dual carriageway. The Mysore Road satellite Bus Station also renders better connectivity to the areas like K.R Puram, Majestic, and Airport etc. The land price in this area ranges around Rupees 699 per sq. ft. to Rupees 720 per sq. ft. 

Electronic City Lands (Plots / Sites)

It is the largest technology hub of Bangalore located at the outskirts. It is the house of about 300 companies and also has a large workforce and employee capacity. The location is flourishing as people are ready to invest in new ventures. The newly constructed and elevated expressway has played a great role in managing the traffic and attempts to lessen the congestion. An amalgamation of all these factors has made electronic city one of the most preferred locations in Bangalore. The approximate value of land here in this area ranges to about Rupees 500 per sq. ft. to Rupees 700 per sq. ft. The land prices in the nearby area namely Anekal and Chandrapura vary around Rupees 500 per sq. ft. to Rupees 600 per sq. ft.

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A study and vision of Bangalore housing sector in 2014

The rapid growth of Bangalore City in few decades in terms of infrastructure, educational institutes, social infrastructure, and the real estate sector is driven by the flourishing IT industry.

The city is now home to a large number of High Net-worth Individuals (HNIs) and is the third-largest real estate hub for HNIs who park their assets here and one of the topmost cities where NRIs want to settle down in the future.

Due to its multicultural ethos, the city attracts more populace and today the city houses around 10,000 individual dollar millionaires and also home to many NRIs who are professionals and settled down in the city, which drive the demand in the real estate sector especially the housing segment.

Particularly, in sub-markets like Whitefield, North Bangalore, Outer Ring Road, Central Business District (CBD), and Secondary Business District (SBD), the demand for high-end residential apartments in the city has increased.

Right now, the most optimistic and preferable residential micro-markets in the city are the North Bangalore, Whitefield, Sarjapur Road, and Outer Ring Road (ORR).

With many ups and downs in the sector, a study and outlook of different residential categories is given below:

High-end residential category
Property price - Rs.1.5 Crore and above
Residential Type - New villa, villaments, and row houses
Locations - Whitefield, North Bangalore, Sarjapura, and Outer Ring Road (ORR)
Study & Vision - Demand is likely to remain stable in the coming year

Mid-segment residential category
Property price - Rs.75 Lakh to Rs.1.5 Crore
Residential Type - Above 2 and 3 BHK luxurious apartments
Locations - Electronic City, ORR IT Corridor, Whitefield, and some areas in North Bangalore
Study & Vision – Demand driven by IT/ITeS professionals who look for home close to their office and focus on social infrastructures, educational institution, hospitals and many other facilities
 
Affordable residential category
Property price – Rs.50 lakh or below
Residential type – 1, 2, 3, BHK apartments
Locations – Outskirts of the city, Peripheral Ring Road (PRR), South Bangalore, North Bangalore, West Bangalore
Study & vision – The proposes infrastructure projects like Metro Rail drives the demand

Synopsis of reality market
In the fourth quarter of 2013 there was an increase in the absorption of residential sector against the third quarter of the same period. About 30 residential projects were launched in the fourth quarter of 2013 and a slight appreciation in capital value and the sales volume increased as the most of the projects were in completion stage.

Opinion about Bangalore Reality Market
It is likely that in the first half of the 2014 the growth of residential market will remain stable and a modest number of launches in residential projects will be witnessed, while leasing and capital values will remain stable and is expected to rise in second half of 2014.

Factors that drive the leasing and capital value of Bangalore residential segment:
•    Development in IT sector
•    Investment by more HNIs and NRIs in residential segment of the city
•    Proposed infrastructure projects by government like Elevated expressway, Metro Rail, and Peripheral Ring Road (PRR), many others
•    Projected SEZ and IT Parks in North Bangalore such as Devanahalli Business Park, ITIR in Devanahalli, Aerospace SEZ, Airport City and others

Land Loser has the right to make decision in Land Acquisition and Compensation

The new land acquisition law that has been enforced has comforted the landlords who have sold their land for public sector infrastructure projects in Bangalore City.

For example, if an agency requires a land of 2,000 Square Feet. in a location for any proposed public sector infrastructure project then the approaching agency should pay an average compensation cost existing in the area for an instance if land is required in MG Road, then the agency should Rs.27, 000 per Square Feet. as an average compensation keeping in mind the current market value and if it ranges between Rs.25, 000 and Rs.30, 000 per Square Feet.

Based on the new law, the land or property owner should get a compensation of Rs.54, 000 per Square Feet., as it says the land owner should get double the price of the market value. The new law also gives right to the land owner to argue with the approaching agency about the compensation cost if the land owner feels the deal is not fair. And, this dispute can be held at a proper platform solely formed by the government by providing documented substantiation.

The new law is regarded as favorable for farmers as the compensation cost for land owners is four times the market value and will also make sure that the land loser is provided with rehabilitation and resettlement. The provision in the new law also says that the land cannot be acquired without the approval of the land owners.

The idea of Transfer of Development Rights (TDR) under which the land owners can be given land as compensation instead of cost for the loss of land area that is acquired by the government for public purpose like for constructing flyovers, roadways and other infrastructure.

The new law in the foreseeable future may surely cause less conflict to a whole range of infrastructure projects in the row that includes road broadening, construction of flyovers and passageways, and elevated expressways.

Stipulation in the Law

• The new Land Acquisition Act says that in case the acquisition of land is less than 50 acres of area in cities and 100 acres in rural areas then the law will be discretionary.
• The TDR should be more attractive an approachable in such a way that land owners to choose TDR instead of compensation cost.

Adverse for Farm Sector

• Farm land will be gobbled through this new law.
• The compensation cost will attract the farmers to give away their lands.

Many farmers say that they don’t have any complaint to acquisition of land for Metro, rail, roads, and other necessary public sector projects by government. The government should also understand that no compensation can recover the food calamity in the anticipatable future.

Compensation for Land Loser

• Urban Areas - Compensation cost will be twice the market value of the property in addition to this 100 per cent solace on this amount.
• Rural Areas - Compensation cost will be four times the market value of the property
• Market Value - Value of the property registered at the sub-registrar offices, but it is still unclear in the market value whether the exiting market value or the regular market value will be considered.
• Discussions can he be held by the land owners if the deal is not fair and the discussion can be held in a forum formed by the government 

About The New Law

• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 has substituted the 120-year-old Land Acquisition Act of 1894
• The President approved the new Land Acquisition Bill on September 27, 2013
• The Bill was introduced as  the out-of-date 1894 Act underwent several inadequacies, such as the resettlement of the land loser
• Fair compensation and compulsory rehabilitation and resettlement (R&R) for the land loser
• A study should be conducted on the land acquiring agencies about their plan to use the land and how the land owners are rehabilitated and resettled.

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The Slow Movement in Land Acquisition Delayed the Construction of New IT Hub

The sluggish movement in land acquisition worsened by increase in land costs has obstructed the Karnataka government’s plan to build a new information technology (IT) hub in the vicinity of new international airport on the periphery of Bangalore.

This plan of building new IT hub was planned by Karnataka government under the plan of central government in May 2008 to boost the Information Technology Investment Regions (ITIR) in the country. In a Global Investor Meet in 2010, the Karnataka government said that the IT hub was visualized to bring in 2 lakh crore new investments and generate around million jobs.

A government official with a adequate knowledge about land acquisition process and who wanted to remain anonymous said that the department has delayed in acquiring land and now with the increased cost of land the total projected cost of the project could twofold.

In 2010, Karnataka government permitted the ITIR to build on more than 10,000 acres of land. In regarding the same, the government said in a meet that around 55 companies including many major IT companies like Cognizant, TCS, Infosys, Wipro, and many others came forward and has shown interest.

According to another person with good understanding in the land acquisition process said that in 2010, the cost of land was somewhere around 60 lakh to 75 lakh per acre but today the cost per acre of land has increased to 2 crore. He also added that private property owners who own land nearby the international airport demand for higher cost on lands.

The Karnataka Industrial Area Development Board (KIADB), the agency in authority for land acquisition, handed out a notice to speed up the work of acquisition for ITIR. M N Vidyashankar, Additional Chief Secretary of Government of Karnataka said in an emailed statement that the amount of land elaborated is 2,074 acres.

The accumulating pressure on Bangalore's infrastructure has been a difficulty of constant distress for companies that played important role in making the city as IT destination in India and third in IT services being exported from the country.

With continental Europe coming-up with a notion to send more IT work to India, the industry is growing and with delay in building this new IT hub, Bangalore could lose companies that want to set up centers and the opportunity may be bagged by other cities like Indore where Tata Consultancy Services is setting up its center.

The Bangalore Political Action Committee supported by business many leaders like Mohandas Pai-Chairman of Manipal Global Education and Kiran Mazumdar Shaw-Chairman of Biocon saw Karnataka's Chief Minister Siddaramaiah regarding many concerns and also forced for quicker measure on infrastructure expansion.

The Karnataka Information Communication Technology Group headed by Mohandas Pai, who is also a former board member of Infosys in Bangalore, submitted a report to the government in January that made thorough endorsements on making Karnataka as a technology powerhouse and electronics manufacturing.

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Real Estate Prices Increase Irrespective of Slow Demand

A recent study by India Ratings & Research has showed a negative sign regarding the unchanging view of reality industry in 2014-15, which is based on the unrelenting depressed end-user demand and the differing consumer sentiments.

The rating agency also showed that the real estate market is seeing drop in sales, reduce in income, Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) limits and sustained deterioration in credit metrics and inflow of cash.

The agency rated most of real estate companies with a steady view, based on the hazards impacting the sector. The companies or group rated at investment level are residential companies with robust sales and resilient cash flows or single commercial properties with long-term lease agreements.

The rating agency believes credit metrics will continue to decline in fiscal year 2015, due to increase in residential prices that will lower the sales, that will lead to increase in bank credit and an increase in inventory for the sector.

In the first half of 2013-2014, the sale of new residential units has recorded a decline and the reason behind this is the reducing consumer sentiments and high price of real estate properties.

Though, the end-user demand seem to be weak, prices continue to remain high and it is considered due to the restrain of gold import by the government that has regarded to have boosted the investors and speculators.

This rise in property price is also justified by the report of National Housing Bank's house price index in the second quarter of financial year 2014, which recorded after a decline in the earlier two quarters, as it overlaps with the obligation on gold import.

According to Ind-Ra, it is likely that the commercial property demand would continue to subdue in 2014, because of decline in economic growth and it is due to the continued slow economic growth that would affect the new requirements in most sectors of the real estate market. It is also anticipated that demand in retail will be sluggish in Financial Year 2015, as retail companies would endure to enhance their store ranges.

In 2013, the private equity and foreign investors interests was observed to be strong in the real estate sector and strong investment was seen in rent-yielding commercial properties where several large transactions took place by the leading private equity players like Blackstone.

Ind-Ra also anticipated that the starting of real estate investment trusts (REITs) would be optimistic for the sector, as it would attract new investors and enhance finance convenience. It is also anticipated that REITs would give easy liquidity option for commercial property developers as most of their funds are invested into rent-yielding commercial properties.

In Depth Analysis of Real Estate Appreciation

When it comes to real estate appreciation, a question pops up as to what are the reasons behind the rise in property prices in certain areas. The whole procedure of augmentation of a property’s market value over time is a prime idea behind real estate investment. This procedure is known as appreciation. There are basically various causes to real estate appreciation which includes: Inflationary pressures; the supply and demand dynamics of a particular location; Arrival of new real estate market drivers in a location; Population growth and Home loan interest rates (cost of borrowing).

Inflation: Inflation results due to an excessive amount of money in circulation. What else happens in this procedure is that there is over-abundance of money which leads to a situation wherein its value falls. During the course of this action the prices go up for a number of things which includes construction materials, the prices of land, legal building permits, number of other things and labor.

Demand and Supply: When there arises a situation wherein there is a noticeable increase in demand for homes in a certain area, then if in case the amount of residential real estate projects is not catching up fast enough, the property prices shoot up. To put in other context, self-use buyers are more than ready to pay extra for a property as they tend to find living in that area extremely favorable.

As a resultant factor, when this demand brings in real estate investors, who eventually buy properties there to sell them at a profit when supply slows down again. As a result what happen is that the property prices in that particular location tend to shoot even further.

Home Loan Rates: There is a direct bearing on property appreciation of behavior of home loan interest rates. When there is an increase in the home loan interest rates, then the demand for property also slows down owing to lesser buyers as they can afford to shell out the extra money required by the banks. On the same facet, what leads to an upbeat in the demand for properties is that a sufficient decrease in home loan interest rates which leads to an increase in affordability.

Population Growth: On the same note, the growth in population in area such as PCMC obviously shots up the demand for residential properties there. This eventually, transforms directly into appreciation in real estate rates.