Is Bangalore Still A Good Real Estate Destination For Investment?

by IV S. Consultant

India’s urbanisation is picking up speed, which is affecting real estate development and investment. With the expansion of new business districts, residential markets are also gaining an increasing number of buyers. This is especially evident in residential villas in Bangalore.

The Silicon Valley of India is the hub of India’s IT boom. According to the 2017 version of Emerging Trends in Real Estate Asia Pacific, put out by the Urban Land Institute, Bangalore and Mumbai are top-ranked cities for prospective buyers, as well as investors. Most home buyers find Bangalore a perfect place to settle. This is mainly due to the strong macro-dynamics in this city. 3BHK luxury villas in Bangalore are some of the most popular residences in the city.

Experts say that Bangalore has a stable real estate market with steady prices. This is because the real estate market hasn't seen any violent fluctuations or crashes, which could bring about negative sentiments. Arsha Ladak, the head-marketing of residential, Phoenix Mills Ltd. says, “Residential sales in Bangalore has seen stable 9-10 percent growth in the past two years, in spite of subdued markets. At the same time, prices have not only been largely stable, but also few regions have witnessed considerable use in prices due to the presence of a limited number of players, catering to a market with higher demand.”

Abhijay Verma, the General Manager of a prominent hotel in Bangalore, had very simple reasons for moving. The sprawling world-class engineering and medical colleges in the city and nearby areas, ensured a smooth career growth for his children. The affordable property prices and easier rent-out investment were just an added bonus. 

According to commercial real estate agents Cushman and Wakefield, “Bengaluru has been a stable market that has witnessed gradual increase in capital values, however average rental yields are comparatively better ranging between 2-4 percent as compared to cities like Mumbai where yields are about 1-3 percent. For investors looking for a less volatile market with long-term horizon, Bengaluru provides an attractive investment option. There is minimal loss of rental income as duration to identify or replace tenants is low. There has been investor interest for capital appreciation as well, especially in certain submarkets of Bengaluru.”

The chief business officer of 99acres, Narasimha Jayakumar, says that Bangalore is definitely an investment hotspot, whether it’s for short-term, or long-term investors. He also said, “Bangalore recorded 13.43 million sq. ft. of office space absorption and 12.85 million sq. ft of new construction, which was the highest in the country.”

From an investment point of view, Bangalore is advocated as one of the most stable real estate markets for serious investors. It is also a very attractive option for investors looking for a long-term investment in a less volatile market. The rental income also suffers minimal loss as the duration period of acquiring new tenants or replacing tenants is quite low.

Bangalore is one of the most important commercial hubs of India, and is still one of the best cities to invest in. Find the best areas to invest in Bangalore, and invest in your dream home!

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Created on Feb 13th 2018 01:27. Viewed 683 times.


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