Property prices in flood-prone neighbourhoods of Bengaluru are likely to go up as a result of the havoc caused by this week's heavy rains.
After two days of rain in India, several villas on the Billionaire Street near Yemalur were submerged in waist-deep water.
The people living in villas in the area were flooded by waist-deep water and had to beferried by boats.
The havoc will have an impact on the prospects of luxury housing, according to the chairman of the confederation of real estate associates.
There could be a revision of the price in certain areas.
According to Zapkey.com, villas worth Rs 8 to Rs 15 cr have been sold to start ups. They have been sold to three people. According to Zapkey data, 11 sale transactions were done in these projects.
CEOs and professionals own homes in the Villas. The houses can be found in the range of 3.5 to 8 million dollars. Property prices in Yemalur are between Rs 5,000 and Rs 6,000 per sq ft. The price for places around Outer Ring Road would be between Rs 5,500 and Rs 6,000 per sq ft.
The Outer Ring Road, the IT hub of the city, was devastated by the flooding.
Prices will be hit if construction stays on schedule.
Normal life was brought to a standstill by the rain and flooding which is unlikely to delay the pace of construction.
The president of the Bengaluru chapter of the Confederation of Real Estate Developers Association (CREDAI) said that the rain has affected only a small part of the city.
The people living in apartments or completed projects are the hardest hit by the waterlogging.
CREDAI believes that demand will not be hurt by a short period of property prices being hit.
The demand for property prices was not affected by the floods in Mumbai and Chennai.
There will be an issue of inventories piling up. Middle-income buyers might prolong their decision of buying because they don't want uncertainty in their lives.
Middle-income buyers prize affordability over concerns such as flooding or the environment according to a real estate broker.
There is a chance that people will migrate to villas in higher grounds in the northern part of the city. We could see a rise in luxury housing inventories. For the next six months, I think we won't see any transactions in the flooded areas.
Lessons learned.
Builders need to pump water out of construction sites.
The water has to be pumped out whenever it enters the site. It adds up to at least Rs 2 lakh per day.
Builders and corporations have learned a lesson from the floods.
Builders and corporates will conduct a proper study before buying more properties. They will collect data from the India Meteorological Department in order to plan the projects. They will know where to get the land.
Joe said that today's homebuyers know where to buy their apartment. The recent flooding in Bengaluru is not new for the real estate sector.
Home buyers too would have drawn their lessons.
The sanction plan will be questioned with details of facilities like drainage, according to Singh.
He said that the companies would become aware of how they are constructing the projects if they started questioning the developers.
Experts say the flooding in areas like Bellandur and Outer Ring Road area took place predominantly because buildings had encroached into the stormwater drains.
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