'Real estate boom might shift to north'

North Bangalore will soon witness a surge in real estate activity, according to B M Jayeshankar, president of the Karnataka Ownership Apartments Promoters' Association (KOAPA).

Jayeshankar was speaking to reporters on the sidelines of Reality 2004, the ninth edition of the annual real estate exposition, held in the city on September 2 and September 3.

"Over the last few years, most projects have been focused around south and south-east Bangalore. As of now, 50 per cent of the projects are being implemented in the those parts of the city. Now, there will be development in others areas too, especially in the north of Bangalore. The Bangalore international airport will give a fillip to the development in the north," Jayeshankar said.

According to M R Jaishankar, managing director, Brigade Group, nearly 1,000 apartments were being sold in Bangalore on an average every month last year. This has now increased to nearly 2,700 units per month.

Highlighting the importance of the construction industry to the economy, B M Jayeshankar said that it is next only to agriculture in terms of employment. He estimates that the construction industry employs nearly 3.2 crore people.

KOAPA also decried the substantial price increase in steel, cement and other construction-related materials.

"The interest rate cut is nullified by the increase in the prices of steel, cement and other construction materials," a member of the association said.

The association has demanded a reduction of duty on basic raw material input to the construction industry, which is expected to enable better management of the current adverse market conditions.

The visitors to the expo had 17 developers and four housing finance companies to choose from. The prices of flats and houses/villas on offer ranged from Rs 14 lakh to over Rs 3 crore per flat.