Residential real estate in Bengaluru:
The real estate market in Bengaluru is gaining ground, thanks to sustained growth in market prices and investors' interests. Being the IT hub of India, Bengaluru has a multi-cultural population with good social infrastructure, excellent educational institutes and constantly upgrading physical infrastructure.
A redeeming feature of this market is that it allows flexible growth in many aspects, right from infrastructure and technology parks to educational institutes.
Box47386 Potential residential micro-markets: Looking at the current prospects, we recommend investing in real estate, which includes land, apartment or villa projects depending on the budget. A good investment in real estate should yield high returns over a long period of time and hence is considered as an asset.
With the recent government initiatives, there is a lot of hope for a buyer, unlike before. Developments like the recently passed Real Estate (Regulation & Development) Bill 2016, Smart Cities initiative, and the introduction of REITs (real estate investment trust) are expected to bring in the much-required transparency into the sector and enhance investors' confidence in the coming years.
Currently, some of the most promising residential micro-markets are located in and around the Outer Ring Road (ORR), Whitefield towards the East and in North Bengaluru locations like Thanisandra and Kogilu. As per the latest Knight Frank Research findings, East Bengaluru saw greater momentum in sales growth during the period January-June 2016 due to preferred budget range, access to employment hubs and metro connectivity. Both East and North Bengaluru have the benefits of good social and physical infrastructure, accessibility to employment hubs, varied price options and project availability.
Meanwhile, an important trend that has been witnessed is the shrinking of sizes of apartments and also formats to studio, one BHK units, two-and-a-half BHK units, thereby bringing down the ticket size of the apartment. Investors and buyers alike, with a lesser budget, can opt for affordable housing projects located in South Bengaluru peripheral regions such as Anekal, Attibele, Chandapura, Kammasandra, Hosa Road and Begur, as well in West Bengaluru peripheral locations like Kumbalgodu, Tumkur Road and Kengeri due to availability of land at relatively cheaper prices.
Hoskote and Mandur in the east and Rajanukunte in the north are also viable options. These locations are good for long-term investments, especially the ones that are abetted by the upcoming metro connectivity.
Not to be overlooked, investing in land is also a good avenue for investment purpose. Micro-markets located in the industrial regions of West Bengaluru like Peenya and Yeshwanthpur have great potential due to support and social infrastructure in place.
This region commands connectivity to railway stations, highways, metro rail and airport as well. Owing to the comparatively lesser land pricing, it holds potential to be an IT hub in the future. Investors can also look at closed down or sick units and factories located in this industrial belt and gated communities as it portends substantial prospect in commanding higher prices in the forthcoming years.