Residential property investments in Bangalore

The residential real estate market in Bangalore has been a happening market for the last decade and there is a myth that a 20% return on investment can be earned from your investment in Bangalore. Various reports from leading platforms have stated that the price of the property has been fluctuating largely during the phase 2013-2015. The recession in 2015 caused a certain decline in the demand for residential real estate property. However, in the year 2017, the buyer’s sentiments were once again revived and the demand for the residential real estate property was revived. The flats were highly in demand and the city once again raised to the top. 

Earlier it was people belonging to the age group of 41-50 years that used to invest in the real estate sector. Now, it has been noticed that more people belong to the 30-40 years. A recent survey conducted on builders by some leading real estate platforms reported that 60-70% of the buyers belonged to this age group. This indicates that the buying power of the buyers has increased in the past years and this has led to the increasing demand for housing units in Bangalore. 

Why invest in Bangalore residential property?

The main advantage of investing in real estate is that it offers two-sided returns which are the monthly returns and capital appreciation once the property is sold. Some of the residential real estate reports have shown affordable housing units in the Bangalore residential real estate market to be the most profitable in comparison to the mid-segment and high-end segments. The government has also from time to time taken initiative to ensure property sales in affordable housing unit segments. A recent example of these initiatives would be the stamp duty tax reduction which has been granted on affordable housing units. 

Affordable homes are highly demanded because the city offers properties at an average budget margin which enables it to yield comparatively more in terms of rental income and capital value as well. Co-living facilities are also emerging to be the new trend. 

Some important tips to follow while investing in Bangalore includes:

1. Proper due diligence should be exercised and ensure that there are proper water supply and sustainability options in the property. 
2. Cross-check all the property documents and verify them with the help of a lawyer. 
3. Check if the construction works on your property have been carried out according to the sanctioned plan. 
4. Check if the completion and occupancy certificate has been issued by the authorities. 
5. Before finalizing your property to invest in, it is very important that ensure that your property has easy access to facilities such as metro stations and other public conveyances. 
6. It is also very important that you negotiate the price of the property with your builder and most of the developers of the small project developers will be willing to do so in comparison to the developers owning big projects. 
7. It is recommended that you finance your residential property with the help of a bank loan as certain tax exemptions are granted under the Income Tax Act under sections 24 and section 80. 

Best places for residential real estate investments

• Whitefield

Whitefield is one of the major destinations for residential investments as it is home to several IT parks and companies. The working population of these IT parks and companies prefer to stay in nearby localities to reduce the cost and time of traveling from one location to another. Thus, the value of the flats for sale in Whitefield often experiences a steady growth on a yearly basis. 

The rental values of residential areas in Whitefield also increase steadily with the increase in the demand from professionals as there are several companies and start-ups. The superior level of connectivity to the rest of Bangalore and the best social infrastructure is some other factors that contribute towards the increasing demand for residential spaces in Whitefield. The proximity to the old madras road, outer ring road, metro rails, etc. are some of the other factors which add on to its attractions. 

• Electronic City

Electronic city is one of the most prominent IT hubs in Bangalore and has witnessed significant growth in the past few years. The electronic city extended over 800 acres and is home to several commercial and residential projects. The locality is also divided into three phases and each of these phases has all the necessary facilities. The electronic city is also very well connected through the metro and hosts several educational institutes, supermarkets, hospitals, and recreational spots. This is also an area that hosts the largest number of restaurants and pubs in Bangalore. The price range of the flat is around Rs 2,848-3,442 per sq. ft. in phase 1 and around Rs 3,358-4,420 per sq. ft. in phase 2. The price of the property in this region is also expected to rise every five years. 

• North Bangalore

North Bangalore is another beautiful location for real estate investment and is very well connected through the outer ring road. The price of the property in these areas has also escalated due to its proximity to the Kempegowda International Airport and the Central Business District. A perfect example of north Bangalore being an ideal location for residential investment is the projects in the Yalahanka region of North Bangalore which offers its residents a mix of safe and serene residential options. Hebbal, Thanisandra, are some of the other spots in North Bangalore for investments as they have a large number of empty lands which can make a lucrative investment option. 

• BTM Layout

BTM Layout is an area that offers several options for residential investments. It is also adjacent to areas such as Koramangala, HSR Layout, and Bannerghatta Road. The properties in the BTM layout enjoy locational advantages due to which the rental value is on an upward swing. It is also very well connected to the rest of Bangalore as metro lines such as Rashtriya Vidyalaya Road, Banashankari has been constructed. 

• Nayandahalli

Nayandahalli is one of such locations which cannot be left off the list of best residential spots in Bangalore. This may be because the area is very well connected to other parts of the city through metro services and also through public conveyances. The land and property value in Nayandahalli has also appreciated recently by a 36%. Some of the areas adjoining Nayandahalli include NGEF Layout, D Group Layout, and Balaji Layout will also see price escalation.

• Kanakapura Road

The Kanakapura Road is also another locality that is popular among buyers of properties belonging to the mid-housing segments. The location is also undergoing changes in regards to its residential projects and also high-ends products. With the completion of the metro project, the connectivity in these localities is also expected to become better. 

• Sarjapur Road

It is one of the fastest-growing cities in Bangalore and has been recognized as a hotspot for residential real estate investments. The locality is available at an affordable rate and also provides investment options for different income groups. It is also proximate to IT clusters such as Whitefield, Outer Ring Road, Electronic City, Marathahalli, and Koramangala which makes it an even more attractive spot for investment.  The locality also has recreational outlets such as Market Square Mall, The Forum Mall, etc. 

The fact that Sarjapur Road hosts several hospitals, educational institutions, etc. is one of the other factors attracting investors. The locality is also very well connected with sound public transportation facilities and bridges as well as roads. This includes Outer Ring Road, SH-35, and Hosur Road. 

• Bellary road

The Bellary road has emerged to be one of the most prominent micro-market for residential real estate in Bangalore. It has several infrastructural projects and developments which makes it a good option for realty investments. It is also proximate to locations that are commercial and industrial catchments such as Hebbal, Yeshwantpur, and Devanahalli. It is also very well connected by the Outer Ring Road. It is also proximate to the international airport and central business districts of Karnataka. 

Bottom Line

The realty market in Bangalore is driven by economic developments may be in the commercial real estate sector or residential real estate properties. The demand for the residential real estate market is driven by those professionals that have shifted to Bangalore. Renting out your property is one of the best ways to earn an income and a great return on your investment. With Assetmonk you are provided with investment opportunities in residential and commercial real estate properties in top Indian cities like Bangalore, Chennai, and Hyderabad. Some of our top projects in Bangalore include CBH Series I and CBH Series II. We also offer properties offering both short-term and long-term benefits. Visit our website for more details!