Tuesday, August 29, 2006

Bubble, bubble

I can understand epicenters of growth being in the middle of a real estate boom, but now it appears as if any piece of land anywhere is madly priced. Two consecutive days in the ToI (or its group publications) in the last few weeks, I found supplements on real estate in Mysore. There are real estate exhibitions of Mysore and Kochi being organized in Bangalore. If this is the South, perhaps there are similar stories in other parts of the country too. Someone is desperate to sell land off to those who can buy.

A word about the boom in Mysore - Mysore is a satellite town to Bangalore and that too not by much. Connectivity apart from the KSRTC buses is not that great. One expressway is being built for the last many years and one road was recently four laned. Industry is just about getting its feet wet there (and Infosys is really the biggest). Mysore is more about history, heritage and culture and a "must visit" on every Bangalore tourists map. It does not have an independent standing, unlike Pune has w.r.t Mumbai. Differ with me if you like, but Mysore simply does not have the depth that Pune has in its colleges, manufacturing, technical institutes or even IT companies. And take out Bangalore from Mysore and you wont even know where it stands on the map. Why, it does not even have a half decent airport.

Real estate in Mysore is pretty expensive considering the present (developers point and say future - I dont see what they see) status of the city - I cant see it as anything but an artificial price rise, a bubble.

Update: An impression of Cochin/Kochi by Rashmi
. Connect the dots to the real estate boom there.


Hiren said...

There has been a spectacualy rise in real estate prices here in Delhi as well. I am not complaining since I am a seller- in fact if it falls it will be my-sore(point)

Venkat said...

you're missing the obvious!

Real Estate like the stock market is dependant a lot on speculation.

There has been news titbits of every other company having a branch in Mysore. Infosys has its HQ there.

So real estate folks bank on the infrastructure cravings of Bangalore to sell the point that Mysore is the next "location"

Thats the reason!

you might wanna buy a plot instead of disputing the logic..;-)

Siva Rajendran said...

A financial Institution points out this irrational boom in realty market by saying "Investing in Real Estate at this price is like investing in the stock markets at 20,000 level now." -
So those who want to buy now, better be cautious.