The name Bangalore conjures up some of the most mesmerizing images of India’s Silicon Valley. Probably, the most beautiful city, its pleasant climate has often been the subject of many envious conversations. The 10 km long and beautiful tree-lined, the one-way MG Road contoured with charming cafes and restaurants, and world-renowned institutions and research centers like IISc and ISRO all make Bangalore the most coveted city to stay, study, works, and raise a family. But what has never been mentioned or newsworthy, is the city’s real estate. A silent war of prices, demand, and supply keeps the real estate stakeholders on a constant vigil.
Why Bangalore Is India’s Leading Real Estate Market
What does all this frenetic activity mean for someone looking to invest in real estate for capital growth? Is a particular type of property more likely to appreciate faster? Residential or commercial? New or resale? Conversely, a real estate investor might also look at rental yield , how much rent can you earn from a given property as a percentage of the property’s value? That’s a valid approach too, but here I’m focusing solely on wealth creation through capital growth. I’m not sure anyone really knows , after all, central bankers and finance ministers around the world are still scratching their heads trying to figure out if “printing” trillions of dollars leads to inflation or deflation. However, in a simple market with limited distortions, the basic laws of supply and demand should apply. New supply increases when it is profitable for developers to build new buildings, given the price of land, construction costs, and expected selling prices or rents. This price of new supply is a major factor determining the likely pace of capital growth for new property versus existing property (i.e. resale property). If you can get higher rents or sales prices for new versus existing property, you should over time see prices appreciate at a faster rate as well. Conversely, if there is little or no difference between new and existing property, prices will tend to rise at broadly the same rate , whether that rate is high or low. So let’s think this through. In the case of residential property, older units (and for that matter entire buildings) will tend not to have the same fittings, fixtures and equipment, modern design and layout, or amenities that new property offers. Whether you want to fling open the HUGE glazing doors and turn your living room into a terrace, saving all-important space that a conventional door would occupy, or simply coordinate your sliders to match your back-painted or printed glass splashback , all is possible with Cover Frameless Glass Doors… and just can’t be done with conventional doors. Instead of being a cumbersome afterthought, your sliders will become a feature in their own right. That’s the Cover Frameless difference. Old housing estates in the UK are plentiful, and somewhat unglamorously, for the most part in stainless steel , here we have the luxury of printing glass doors for some new and prestigious addresses, directly under the shadow of the Shard and right on the Thames itself.
The demand for real estate in Bangalore might seem to have no end in sight. But how much of it is real and how much is inflated by hype and speculation? Quite a bit of the latter, I’m afraid. Most of these buyers aren’t looking for a place to live or even a stable, long-term investment. They’re playing the real estate game, trying to make a quick profit by trading properties or renting them out at lucrative rates. It’s for this segment of buyers and builders that most of the city’s high-end, under-construction, and proposed properties are headed. The rest of Bangalore makes do with what’s left over.
Types of Real Estate Projects in Bangalore
The suburban areas and outskirts of Bangalore, like Devanahalli, Jigani, Anekal, and Hoskote, are also witnessing numerous real estate developments offering independent houses, villas, and plots for those who prefer a spacious, private lifestyle away from city noise. Some projects even integrate sustainable residential solutions. Gated communities with private parks, swimming pools, and shopping complexes are built for residents who seldom need to step out. It doesn’t feel like you’re anywhere near the city. The large landscaped open areas transform these townships into little oases in the urban desert.
Villa projects offer potential buyers larger living spaces without constraints and additional privacy. Each villa is situated on its own plot of land, often ranging from 1,200 square feet to a generous 4,500 square feet. The value of villas within a community typically appreciates over time, enhancing ROI for homeowners. Customers can customize their villa to suit their lifestyle and requirements. Developers may also include a variety of activities for villa residents.
Best Locations for Real Estate Investment
Whitefield also features attractive 1 BHK, 2 BHK, and 3 BHK flats that are affordable, spacious, and come with gardens, swimming pools, gyms, and areas for children to play.Close to these top IT parks, you’ll also find premium corporations like Shell, Qualcomm, and Tesco. With such a pool of elite companies and educational institutions around, and Bangalore’s first professional 18-hole golf course coming up also near Whitefield, moving to a riverfront flat in Whitefield doesn’t seem like a bad idea, does it? Indulge in a tranquil walk by the river and admire the beauty of the riverfront flats at Whitefield.
Several other parts of the city are witnessing a flurry of real estate development activity. The stretch between KR Puram and Hoskote is dotted with gated communities, row houses, and villa projects. Tumakuru Road, especially the stretch past the NICE Toll Plaza and connecting into the peripheral ring road, is seeing an unprecedented flow of investments, with large parcels of land being snapped up for residential and commercial development. Old Madras Road to the east and Kanakapura Road to the south are also seeing new projects. With its proximity to Namma Metro and the highway connecting Bangalore and Mysuru, Kanakapura Road is said to be the next JP Nagar or Bannerghatta Road. Old Madras Road projects, some of which are still a bit on paper and thus delayed to take off, have in fact missed their timelines. Palm-frond-filled brochures that promised views of a golf course from your windows prompted Bangaloreans to joke that the golfers living inside would outnumber the players outside. But the real golfers are happy with the Bangalore Golf Club, which is located just across the road along Airport Road. For most residents, the main advantage is that these parts of Whitefield are cheaper than the inner areas.
Common Mistakes to Avoid When Buying Property
The excitement of owning a home often leads first-time buyers to overlook the importance of due diligence on legal documents. For the beautiful dream home that you have chosen might be sitting on land with disputed titles! The end of which will be a long drawn legal battle that nobody wants to bear.
One of the most common mistakes is that people overspend hoping that prices will appreciate significantly. Statistics show that in some areas prices have dropped or appreciated only slightly when adjusted for inflation. People still make a ton of money but not because of price appreciation. People make you money, people pay rent, people take care of your property. What goes up in value often comes back down. One of the reasons isn’t current market dynamics; it’s changing buyers’ perceptions of what they want and are willing to pay for. Fashion and health regularly change, why wouldn’t building design and its role in fostering community?
Conclusion
There are opportunities all over the Bangalore real estate market, but where should someone buy property in Bangalore? Have a self-assessment to figure out what your needs are and whether you are making a profitable investment decision or not. If there was a one-size-fits-all answer to this question, the question wouldn’t exist in the first place. That’s not to say one can’t draw some general conclusions. It’s just not as simple as they’re often made out to be. It depends.
