According to many experts, the average land appreciation rate in South Bangalore is increasing exponentially. Several factors like location, infrastructure, lifestyle and interest rates affect this value.
If you’re thinking of purchasing gated community plots in South Bangalore, it’s undoubtedly a huge investment. So, it would be best to evaluate the home resale value before purchasing any plots. Here, we’ll discuss the top three factors that trigger the property appreciation value in South Bangalore.
Top 3 Factors That Influence Property Appreciation Value in South Bangalore
Location and Neighbourhood
There’s no doubt that location is mainly responsible for increasing the land appreciation rate of a particular location. Additionally, factors like the development rate of the located area or its surroundings have a remarkable influence on the price of the property.
Whether you choose to live in a town or a city, it’ll undoubtedly affect how much you pay for your home. The city’s area is always limited. So, naturally, a city like Bangalore that’s highly overpopulated and doesn’t have excess room for additional growth would be priced higher than the city having too many areas to expand.
Based on location and connectivity, here are some pointers that influence real estate area’s value:
- Convenient geographical location
- Available transportation facility
- Advanced healthcare system & schools
- Numerous job opportunities
In South Bangalore, the Hosur Road region is experiencing a high infrastructure and economic growth rate due to its newly-manufactured industries and MNCs over the last decade.
On the other hand, it’s also close to Bomassandra, a top-notch industrial region, and Multinational Corporate Sectors like TVS, TCS, Titan. So, properties in this area show promising growth. If you’re planning to invest your money in this flourishing locality, do it without any hesitation.
Neighbourhood
Consequently, neighbourhoods develop their own cultural, social, and socio-economic characteristics that impact the demand for homes. In most cases, home buyers with young kids avoid remote locations because they want their kids to have company. Moreover, they also look for good schools too. For such families, South Bangalore is an ideal location because it ticks all these boxes.
Infrastructure and Amenities
Infrastructure Development
Infrastructure is another significant factor that increases the property’s value. The land appreciation value of a property surrounded by developed infrastructure will be comparatively higher than a less developed area.
South Bangalore’s connectivity to the important places & neighbouring cities has improved drastically, thanks to its proximity to the airport, highway & flyovers. As of last year, more home buyers have started to prefer South Bangalore for investment purposes.
Apart from this, many business industries and corporate sectors have selected these regions to set up their companies. Many IT companies like Infosys, Wipro, Tech Mahindra, and Multinational Corporate businesses like TVS, Titan, Bicon have set up their offices in this area.
Besides, the existence of various international schools, educational organizations, hospitals, and entertainment hubs has increased the brand value of South Bangalore.
Available Amenities
Buildings with excellent amenities have higher appreciation value than the ones without them. These amenities include swimming pools, gyms, yoga centres, children’s playing hubs, community halls, efficient parking spaces, and others.
All these facilities are capable of making the daily life of its residents comfortable, convenient and luxurious. So, the land appreciation value of such properties will increase spontaneously as people will get better facilities and amenities there.
As we mentioned above, every Address Maker property in South Bangalore provides these world-class amenities to its residents to increase the quality of their lives. So, whether you’re getting a home for yourself or looking for real estate investment, we’re sure you’ll find the right project.
Interest Rates and Affordability
Interest Rates
The home loan interest rate is inversely proportional to the land appreciation value. So, when the borrowing wages increase, the demand for homes decreases. That’s because as the EMI rate increases, fewer people can afford higher EMI.
Similarly, when the home loan interest rates reduce, the cost-effectivity and market sentiment grow in the real estate market. Right now, the interest rate on home loans, GST rates are pretty low in South Bangalore. So, more land agents are willing to buy villa plots in South Bangalore.
Affordability
At present, affordability is one of the vital factors that trigger the land appreciation value. As per sources, real estate businesses in South Bangalore will mostly benefit from their affordable housing schemes in the upcoming days. On the other hand, the state government announced some special initiatives so more people can conveniently buy homes.
Affordable housing is trending right now. Currently, many micro real-estate companies in South Bangalore provide numerous options to the buyers and persuade them to invest more.
Due to many affordable housing options, Bangalore has become a city with the highest investment rate in the real estate field. Moreover, many new residential projects are currently being conceptualized and they’ll soon be available for investment too. So, it’s the perfect time for first-time buyers searching for an appropriate investment time to take a chance now.
Conclusion
Real estate is always considered a powerful and stable asset in one’s investment portfolio. Since they’re quite heavy on the pocket, real estate owners always keep an eye on the potential capital appreciation value of the area.
Speaking of the area, South Bangalore is quite hot in the real estate market among all the potential homebuyers. Reasons? Modern lifestyle and comprehensive infrastructure facilities. The increasing real estate investors and high demand for residential communities have led to a hike in the land appreciation value.
If you’re looking to invest in residential plots in South Bangalore, Address Maker has plenty of projects in the best areas. Visit the builders in Bangalore for your real estate needs.
P.S. Our recently-launched Gokul Vatika Address project might interest you.
