Is NOW the right time to buy a house in Bangalore?

If you are planning to buy property in near future, you are most likely in for the biggest investment of your life. This is perhaps why there is so much apprehension around property purchase. Before diving in, we all want to make sure that there is absolutely no scope for regret.

If you are planning to invest in a property in Bangalore any time soon, this article is for you. In this article, let us try to understand the current real estate market scenario in Bangalore, and find out which places are likely to yield maximum future returns.

Why Bangalore?

Industrial hub: We all know Bangalore as an IT hub, but the city also houses other rapidly growing industries such as the aviation industry, Nano technology, Bio technology, Medical Research & Development, Space Research, etc. These industries attract work force from all over the country, leading to increasing demand for residential, industrial and commercial properties in the city.

World-class living conditions: The city houses well-paid IT professionals, expatriates, and other High Net Worth individuals. This calls for highly improved living conditions with world-class amenities like educational institutions, hospitals, shopping malls, etc.

Hub for exciting infrastructural projects: The promise of landmark infrastructural projects such as the Peripheral Ring Road, Metro Rail, Signal Free ORR, High Speed Rail Link, Mono Rail, Elevated Expressway, etc., plays an important role in capital appreciation in Bangalore.

The city has exciting infrastructural projects lined up

Current market scenario

• In recent times, real estate reports have pointed at a deficit in office space in Bangalore. This can be attributed to the large influx of job-seekers from other parts of India and other countries. This points at a rising demand for residential areas close to industrial chains and IT centres.

• It has been reported that Bangalore has 63% localities with an average price rise of 3.1% for apartments. This rise in property prices indicates an increasing demand for residential spaces.

• To deal with this surge in demand, new constructions have taken root. A majority (68%) of these spaces fall in the Rs. 3000-5000 per sqft category. The mid-segment of Rs. 5000- 6000 per sqft comes next at a healthy 23%. These figures act as cheery indicators of a rise in affordability and demand for residential spaces in the city.

• As a part of Budget 2016, the government announced a deduction of Rs. 50,000 on housing loans not exceeding 35 lacs, for first time home buyers. If you are a first time home buyer, this is a good time to act.

Bangalore witnessed a surging demand for residential spaces, in recent years

Which locations are the real estate hotspots?

North Bangalore: This part of the city has been witnessing a soaring demand for high-end residential units, due to the commencement of the Bangalore International Airport. Proximity to the airport and well-planned infrastructure, are the driving factors for surging demands in this region.

South and west Bangalore: This part of Bangalore suffers from poor urban and social infrastructure, due to which there is a low demand for high-end, luxury developments. However, after the establishment of Electronic City, this area has seen an increased demand for low to mid-segment housing facilities.

East Bangalore: This region is the major IT destination of the city. Whitefield and Sarjapur Roadare the major hubs of luxury residential complexes in this region. Due to high-end infrastructure, this region has high demand for luxury housing. 

If you are planning on investing in property, now is a promising time. The city is undergoing notable changes with the commencement of new government projects and the proposal of Special Economic Zones. Before you take any major decision, make it a point to do a complete survey of the most lucrative destinations in the city. Remember the final call is yours to make, so be fully informed!