Real Estate Limps Back to Normalcy In Costal Karnataka

There is a renewed hope in the real estate business in coastal Karnataka in the new year, which is making a slow recovery, with the sub-registrar’s office here receiving many property registration papers. The industry had hit rock bottom due to the pandemic and other issues.

According to sub-registrar office officials, currently, they receive 30-40 property-related documents in the city area every day, three times more than previous months. Meanwhile, the real estate industry stakeholders have expressed that there is a steady revival and rise in demand for affordable housing.

Jithendra Kottary, managing partner, Lotus Properties, says that a majority of the new home buyers in Mangaluru, are those who worked in the Gulf, and have returned after losing their jobs.

“This constitutes about 30-40% of NRIs, who are middle class, and lost their jobs in Gulf countries. They are investing their savings on commercial properties like shops, in order to earn rent, while others are going in for affordable housing. The lower interest rate on home loans is another game-changer, which is around 6 to 7%. Some banks also finance a maximum 90% of the loan,” he said.

With financial constraints still an issue among buyers, most of them go in for affordable housing. Real estate consultant Narasimha Shenoy says that houses budgeted between Rs 30 to Rs 50 lakh are most preferred currently by many home buyers. There is also demand for homes or flats priced above Rs 1 crore or more, but there are few takers for the same. Independent properties too have a lot of demand.

There was expectation of price correction in real estate due to low demand. However, it hasn’t taken place, and prices are still the same. Real estate consultant Vivek D’Mello says that buyers expected the real estate prices to come down, but it did not happen. The prices of available land parcels inside Mangaluru city are too expensive to buy, and people do not wish to move to the outskirts, where rates are affordable. “As a result, some of the builders owning land inside the city, are going in for affordable housing projects,” he added.

The recent amendment to the Karnataka Land Reforms Act, which allows anyone to own agricultural land, is also boosting real estate. “Those working in corporate companies and having a liking for farming as a hobby, are purchasing two to five acres in the outskirts of the city,” said another realtor.

(Source: Times of India)