Real estate prices may crash with BSYs exit

SHIMOGA: The real estate business might nosedive in the city as well as in the district with the ouster of Chief Minister B S Yeddyurappa.Talking to Express, Ramesh, a realtor, expressed concern that the business would face hard times owing to the political scenario. In the past four years, the land price in and around Shimoga has been sky rocketing. Most people who sold their lands got a hefty price.The price of commercial establishments on Savalanga road, Nehru Road, BH road and Balraj Urs road is `6,000 to `7,000 per sq ft from the earlier price of `700 to `800 per sq ft in 2004.This exorbitant price hike was seen only after the BJP government came to power and BJP leaders acquired land in the name of development, said Shyam Sundar, city JD(S) president.It is very difficult to own a piece of land in Shimoga compared to Bangalore, said Suresh, a resident of Vinobanagar.The site valuation too has gone up in all residential areas of the city.A similar situation prevails across the district and Shikaripur in particular.“I sold a site (30X40 ft) in Shikaripur for `4.3 lakh which I bought for `80,000 in 2007,” said a party worker of Shikaripur who did not want to be named.The cost of a 30X40 sqft site in a prime locality of the city is about `1,200 to `1,500, which was `350 to `550, said Purushottam, a real estate businessman.The land price in and around Shimoga district has goen up four-fold in the past two to three years.People who have invested in property in the city in the past two to three years will certainly face a tough time selling their land for the price they bought it as the CM’s is stepping down, said Manjunath a real estate businessman.The land price may fall up to 50 per cent with the exit of Yeddyurappa as the prices were blown out of proportion in the city over the past four years, said Dattatri, a resident of Vinobanaga