Investment Interest in Apartment and Plots in Bangalore

The anticipated outcome of the general elections conducted in 2014 has led to a soaring of the share market and a rise in the value of rupee and strengthening foreign currency, more NRIs are inclined to invest in residential properties in Bangalore. The city is viewed as a premier market destination and checks off a number of boxes as the city to invest in.

The investment climate is healthy along with regularly expanding job scenario and better civic infrastructure, large platter of residential realty projects to pick from and an urban and active lifestyle is what is leading the cause for Bangalore as an attractive destination for real estate investment.

Premium locations for Residences

Although there are several older neighbourhoods which have retained their posh tag, several new locations have also been included in this group as they offer lifestyles comparable to that available abroad along with high quality social infrastructure.

Director of Silverline Realty, Zahed Mahmood has listed out some premium locales that NRIs consider such as Sadashivnagar, Jayamahal, Dollars Colony, RMV IInd Stage and RT Nagar and to a good extent, HRBR and HBR Layouts. Never areas such as Bellary Road, Jakkur and Hennur Road are also popular among NRIs. In short, areas in east and north are more preferred by Indians settled abroad.

While considering properties in the east, NRIs are still much convinced about Whitefield as enquiries about properties here pour in every day and many NRIs have already moved in here. Indiranagar is another preferred location. Places around Hennur Road, Whitefield and Thanisandra Road and areas along the 2 important technology parks are places where people prefer to invest. There are numerous luxury residential projects taking off in this area.

Conveniences and Lifestyle

Whitefield is mostly attractive to buyers because there have been a bunch of launches that offer good products. The business environment is quite rich here and there are many large facilities situated here that have good upcoming and established infrastructure in large malls for retailing.

Social infrastructure such as presence of renowned international schools, easy exit and entry to workplaces and airport, high quality finishing of property development projects in this price bracket and the lifestyle offered add up to increase the value of an apartment here. Open space for kids to

play in and proximity to property where friends and relatives have bought apartments also become deciding factors in the purchase of apartments here.

Potential for Considerable Appreciation

Given the limited supply both currently and in the near future, Richmond Road, Vittal Mallya Road, Sadashivnagar, Ulsoor Road, Cunningham Road, Kormangala and Indiranagar are extremely plush locations and there is no overhand of supply whatsoever.

The lack of over supply is leading to very high capital appreciation potential. Even though a luxury apartment in these premier areas might cost between INR 6 crores and INR 30 crores here, compared to premium locations in cities like Mumbai and Delhi, it is quite reasonable.

Preference for Choices

Almost 75 percent of property demand in these areas is driver by end users. The demand is mainly in the Rs 2 crore to Rs 5 crore segments which stated preference for gated communities and large apartments or villas.

A lot of investor activity can be noted in the increase in price in North Bangalore, especially around Yelahanka and Hebbal, where investor interest is high. Nevertheless, considering the mostly healthy characteristics of the market and better offering involved, the areas and their nearby locations are quite reasonably priced as they offer a plush lifestyle and rank quite high in appreciation of capital value.

Bangalore residents are mostly enthusiastic at times of investing in plots for residences. Of the 12 percent prospective buyers of land in the nation, almost 30 percent of them are in Bangalore. The buyers want to invest in residential plots not only for reaping healthy returns but also to live on the land after building a house.

When considering the prospects of investment in land, it can be safely said that the returns on land is much than that in apartment and hence it is a better option for investment. Bangaloreans seem to be taking this nugget of advice more seriously than others.

Almost 28 percent buyers of residential property in Bangalore demand residential plots. The highest demand for this kind of property type is located in the West and Northern region followed by the South and East. The only region left out is the Central part which does not have land parcels available for selling.

When supply is being considered, west, south and north showed a slight shortage by around 2 to 8 percent while the east showed an excess in supply by almost 12 percent when compared to demand. In east Bangalore, the highest supply of this kind of property is in Hoskote, Sarjapur and Whitefield.

The maximum plots available in Sarjapur within Rs 10 to Rs 20 lakhs budget followed by that in Rs 20 lakhs to Rs 30 lakhs and then Rs 30 lakhs to Rs 40 lakhs. Within this amount, buyers can buy plots which are almost 5000 sq. ft big. A few options of 850 to 1500 sq. ft. plots are also there and they cost around Rs 5 to Rs 10 lakhs.

Hoskote is an area rapidly developing along the city’s periphery and it offers mostly residential property. Almost 90 percent of the residential development is in the form of selling of plots. The plotted developments have been started to be converted into apartments and combined with the infrastructural improvement like the upcoming Bangalore Chennai Industrial Corridor and Pearl Ring Road, the region is believed to bring in healthy returns in the near future.

Plotted developments do not form the majority in Whitefield, but they do form a chunk in the total land inventory available. As it is an IT hub, the area is a part of the most pursued localities in Bangalore and has shown an appreciation in capital value by roughly 16 percent in the past 1 year.

Apart from these localities in the east, there is a good supply of plots in areas like Mysore Road, Electronic City and Devanahalli.