Investing in Bengaluru’s Real Estate Market – Deepak Yewle

Bengaluru, March 20, 2016: The real estate market of Bengaluru has been quite stable over a period. Most of the investments in the real estate market are made for end use, and this decreases the scope for speculative investment for capital appreciation. There are more and more of projects coming up in areas like Bannerghatta road, Yeshwanthpur, Hoodi, and more. Developers are building luxurious apartments in Bannerghatta road Bangalore.

Bengaluru’s real estate market is very different from any other market in India. This city has a better track record as compared to other cities. There is more transparency, construction quality, fair trade practices, and better project delivery time lines. What could be the reason behind this? The city’s climatic condition? Its thriving economy and talent pool? Or may be the developers in the city are just learning from the mistakes of other markets?

To understand Bengaluru’s real estate market, it is important to pay attention to the demand and supply equilibrium. You also need to look at the balance between the commercial spaces and housing stocks of the city. Other factors like the price points, median affordability and competition in the market too need to be considered.

Bengaluru is one of the best cities in India for investment. Though the returns that this city gives is not very high as compared to other markets, they are stable for sure. Most of the developers in this city are listed companies and even if they are not listed, they have a very organized and reliable process of working that gives the investors a sense of security. The transparency factor too adds to the confidence of the investors.

Bengaluru seems to have an inherited market, which is why the demand is high, and there is not much need for competition. Also, there is not much speculative investment for capital appreciation. It is also seen that the demand for office spaces is the highest in the city. The housing projects are reasonably priced and offer value for money, thus encouraging the investors to make an investment. It has been observed that the properties in Bengaluru that are priced at Rs. 6000 per sq. ft. may cost around Rs. 17000 or more in other metropolitan cities.

It is also believed that the city’s realty market has been developed because of the IT industry. The expectations of the customers from this industry has forced the developers to raise their standards. The developers face a healthy competition from each other and aim to delivery quality projects.

Also, most of the housing stock are reasonably priced below Rs. 5000 per sq. Ft. But the analysts fear that once saturation sets in, the prices will increase to around 7 to 8k per sq. ft.

Bengaluru as a city has grown in all directions. There is a potential of new locations in the north and south-east to grow further. In the early 2000s, it was believed that the Whitefield area was not worth investing in. However, as time passed, even those who invested in the area have benefited. Investing in Bannerghatta road projects have always been beneficial.

Corporate Comm India (CCI Newswire)