devdos

Did you notice? Bangaluru housing prices have EXPLODED

After getting a bunch of 'buy a house' advice from my in-laws over the weekend, I decided to fire up magicbricks to check prices in Bengaluru. My browsing ended within 5 mins seeing just how much the prices have risen in last 1 year

A 3BHK that used to cost 2.3 Cr last year is now 3.7 A 2BHK that used to cost 1.8 Cr last year is now 2.7

These are two houses I had earmarked for sometime later when I would have more money

WTF is happening in BLR

5mo ago9.2K views

Qwerty2398

Stealth5mo

Techies are over paid. That overpayment is reflecting in RE. stagflation is the only solution for this

jake_peralta_B99

Freelancer5mo

What? How are they overpaid? Software Engineering ain't easy shit. It's a specialized skill, you should get paid more for it, if not, then fucking do something about it

Qwerty2398

Stealth5mo

Specialized skill- yes. But not "50LpA for 2 YOE " specialized skill. And i always wondered how come everybody realized that this is a specialized skill only after 2020, Although am very sure that the zero interest rates and flooding of VC/private investment had not role.

InsidiousBruh

Meesho5mo

Time to call in-laws and say that "Aap do jodo mei ladki bhejo ladki huio hamaari"

Batma9

Q25mo

Uncle Ghar hai paisa hai gadi

Guynxtdoor

Desis5mo

So if you are looking at Sarjapur Road after the Wipro Campus. Couple of things have happened.

Metro being planned to Sarjapur
Prestige smart city shaping up
Satellite ring roads sections being completed

IRRESPECTIVE OF LOCATION

End of WFH and folks deciding if it’s better to pay 1 lac emi than 75k rent.
Controversial Opinion : Bangalore is still one of the safest cities in India. Folks who have moved here from “rougher” parts of the country do not want to live in their hometowns.
More families than now are dual income, so folks assuming that the rising costs are due to SDE salaries are wrong. In my community there are many homes with total income of 50lpa+. But they aren’t single income homes.
Construction costs have almost gone up by 100%.
e.g in 2022 , 1000 sqft construction required ~ 11 lacs and in 2023 was ~23 lacs.
The resources required for construction are becoming scarcer and hence pricier. Stone, wood , water etc are going to be even more regulated in the future due to environmental concerns. Regulations = Cost. (Side story: Hyderabad’s construction boom was supplemented by the fact that the whole of Hyderabad is a stone quarry)
Having a house is becoming sort of the baseline for being considered an eligible bachelor now.

kansen

Stealth5mo

I am the founder of a real-estate startup where you can buy a resale home easily.

Couple of things we hear from our customers are:

Lot of us migrated to Bangalore for a job over the last 10 years. Now we are accepting Bangalore as our “home” city and hence looking to buy v rent + migration to Bangalore continues to grow
Gap between rent and EMI is the lowest it has ever been. Why not own if it only takes 20-30k more per month. This dynamic is true only in resale properties though, not under construction.

At a macro level, few factors impacting the price growth:

NRIs are investing a lot in Blr RE (~30-40% under construction is by NRIs)
People have made a lot in stocks last few years. RE is Indias favorite store of value
Rental yield is 4-5% now. It’s better to invest in a home and earn rent than saving in an FD

A lot of these dynamics are long term trends and hence I believe prices will continue to grow until builders flood the market with more homes than there is demand for (likely 2027-2028)

DirtyDot5

Stealth5mo

So what is 3cr now will go upto 6 cr?

kansen

Stealth5mo

Price increase will not be as dramatic as last 4 years imo. But I don’t think it stops here.

My recommendation is to buy a home if you’re going to stay in it. If you’re paying 50k in rent, you can buy a 1 cr home and it won’t change your monthly cash flow at all. You’ll need ~20 lacs upfront though

1337C0d3r

Stealth5mo

This is all silliness and out of touch with reality. This is how it works:

Builder builds 100 flats, finds 10 bakras to buy for 2Cr and then claims the asset value is 200Cr, even though 30-50+% of every project is unsold (and actual "value" is probably closer to 1Cr).
The bakras are usually techies who don't know local prices but still happily overleverage themselves for the "house" dream, thinking it's normal to buy apartments in localities without water or even roads for a Crore plus for "future appreciation"
Builder uses that asset value to get more loans to build more.
bakra ends up with a 1/100 apt in a society with 0 infra which grows in value in savings account interest rates.

End result: Google "Evergrande Crisis China"

Please don't get sucked up into hype trains... You've been smart to make your money, don't be stupid when spending it.

JJproduct

Startup5mo

This is true for stocks as well, pump and dump.

1337C0d3r

Stealth5mo

Not as much because non penny stocks are strongly regulated by SEBI, so get caught/exposedlpunished quickly.

Real estate just has RERA and ask anyone who has bought real estate in India and they'll tell you how "clean" the process is (be it in terms of quality control, white money, corruption, regulatory approvals etc)