Jayanagar Deal Stuns Realty Biz

A plot in Jayanagar 4th Block has just been sold for `55,000 a sq ft, leaving even the fabulously rich real estate sector gaping in disbelief.

Published: 26th January 2014 07:47 AM  |   Last Updated: 26th January 2014 07:47 AM   |  A+A-

A plot in Jayanagar 4th Block has just been sold for `55,000 a sq ft, leaving even the fabulously rich real estate sector gaping in disbelief.

The plot is on 11th Main, near the Jayanagar Swimming Pool, where houses at least four decades old are being razed to make way for glitzy lifestyle shops.

Jayanagar, regarded as one of Asia’s most beautiful neighbourhoods, was built in the 1960s, and many of its streets have turned into hubs of commerce.

With deals such as this one, sylvan Jayanagar has beaten snooty M G Road to emerge as the costliest business area in Bangalore.

A 40x60 ft site on 11th Main recently went for about Rs 13.2 crore, which comes to `55,000 a sq ft. Buyers are paying stunning premiums for location and rental potential; in their perspective, the old structures here are worthless, only fit for demolition.

When contacted, both the realty baron who purchased the property and the seller refused to come on record. Sources at the Jayanagar sub-registrar’s office say the transaction was probably registered online.

“Land transactions can now be registered at any of the nine sub-registrar offices in the city and they don’t particularly have to come here,” he said.

The guidance value fixed by the government for properties on 11th Main is around Rs 12,000, way below the going rate.

Ravi Kumar, a businessman who owns a building next to the plot in question, said, “I have heard about the transaction. Property prices on 11th Main have skyrocketed because buildings are fetching fantastic rents here.”  Some shopkeepers pay Rs 300 a sq ft a month, the highest for commercial properties anywhere in the city.

K Rajashekar, a real estate consultant in Jayanagar, said, “I have come to know about two such transactions in the recent past. One plot opposite a darshini is going for `60,000 a sq ft. The buyer has given a token advance”.

Housing and realty analyst Prashant Sambargi links zooming prices to the business potential in the area.

“Earnings have gone up in recent years and led to the increase in property prices. For example, a darshini functioning on just 900 sq feet does enjoys a turnover of  `1.5 lakh a day. Even big restaurants in other areas do not generate so much revenue.”

R Nagaraja Reddy, President of the Bangalore chapter of the Consortium of Real Estate Developers of India, expressed his disbelief.

Reddy said, “The going rate for property on MG Road is about `30,000 a sq ft.”

“If this is true, Jayanagar is the costliest place in Bangalore,” he added.

Stay up to date on all the latest Bengaluru news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp