Land prices rocket to a new high
The Driving Force: Easing Of FDI Norms, Creating
Bangalore: Landlords are
Kings. Bangalore is witnessing feverish land acquisition activity
by developers, and anybody with a parcel of land is today
Consequently, land prices, which were beginning
to stabilize some time ago, has once again shot up.
A property consultant says he had closed
a land deal in Whitefield a month ago for Rs 1,000/sq.ft,
but today in the same area there are transaction happening
“Some land owners are asking for prices
as steep as Rs 1,500/ sqft,” he says.
In Hebbal, land prices have touched Rs 1,500/sqft
against Rs 1,100/ sqft about 6-8 months ago. And landowners
are beginning to ask for up to Rs 1,700/ sqft. Towards Yelahanka,
land rates have touched 1,000/ sqft and on Doddaballapur Road
(near North West Country), it is 800/ sqft.
Industry analysts say this is being derived
partly by the expectation of foreign investment floes into
the property business following the recent easing of norms
for such investment.
“A few months ago, local developers
were saying land has become very expensive and this wouldn’t
be the right time to buy.
But that’s changed. Everybody’s
now trying to block large parcels of land in good location,”
says Mayank Saksena of Chesterton Meghraj property consultants.
Such land blocking would enable local develop to compel international
developers to enter into joint ventures with them to develop
these prime properties.
A number of foreign construction majors are
seen to be interested in building integrated townships in
Srikanth srinivasan, director in management
consulting company JCSS Global, says his company alone is
working on three integrated township projects in Bangalore,
all of them involving foreign majors and each on over 200
acres of land.
The puravankara-Keppel Land joint venture
is planning three massive projects.
Some see the frenetic land acquisition to
be the result also of the trend towards built-to-suit facilities
Such facilities require large land parcels
because companies want to consolidate all operations in that
space and simultaneously provide for scalability.
“So developers feel the need to build
a good land bank,” says Ankur Srivastava, managing director
of property consultancy DTZ Debenham Tie Leung.