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.