Right Time To Invest In Bangalore
Bangalore is one such city which is suited best for residential and commercial property both and that too in an affordable prices as compared to any other metropolitan. As IT sector touching the new skies in Bangalore one can clearly witness a noticeable demand from end-users in and around the city.
Bangalore has the potential for other industries like biotechnology and aerospace as well besides, IT industry. As the government is planning some dedicated parks around Devanahalli and Doddaballapur for these industries. Over 50 residential property in Bangalore related queries posed by prospective buyers from across the country on May 1st 2012. These queries ranged from IT corridors worth investing, investment in commercial property in Bangalore, home options in a specific budget and location, guideline – buyers should look before investing among others.
The specific areas to look out in the city would be East and North Bangalore. As East Bangalore is already an established destination and North is the next growth corridor as lot of infrastructure developments are taking place. Hence, the potential for appreciation would be higher in North as compared to East.
For home buyers at investing in property in Bangalore, IT corridors within a budget of Rs. 30 Lakh, as advised that buyers should look for an apartments either in Yelahanka in North Bangalore or on Mysore Road. Further speaking about an affordable renting options near Electronic City, pointed that Sarjapur Road, HSR Layout, Bannerghatta Road are all in close proximity and well developed residential localities.
Addressing the user about investment either in apartment/plots or villas, as suggested that one should go for an apartment or a plots as maintenance and renting a property would be easier. As villa is a little risky if you do not find a tenant as you will have outflow every month for maintenance.
Commenting on the growth potential of commercial and residential property in Bangalore, Mr. Ravindra Pai said that commercial property with a grade A tenant and gives a yield of 10-13% while the return out of residential typically in the range of only 4-6%. While choosing a commercial property in Bangalore more than the location one need to look out for the quality of the building the tenant and yield in addition to the title and other diligence.
As Mr. Pai said, ideal areas to be considered for investment in Bangalore among IT Driven localities are Sarjapur Road, Whitefield, Outer Ring Road and Electronic CIty. As their is South Bangalore which is expected to witness rise in capital and rental values with the proposed metro connectivity. Localities such as HSR Layout, Bannerghatta Road, JP Nagar are among other witnessing a stable rise in values across the city.
Witnessing maximum transactions in South Bangalore in localities like Bannerghatta and Kanakapura Road, Mr. Arif Iqbal of Elite Group said, here the multi storey apartments of 2,3 and 4 BHK size units were most popular. As there has not been a good appreciation in prices in the month of Jan-Mar 2012 quarter compared to the previous quarter, with prices increasing by 2-4% only in this quarter.
As the proposed metro in South Bangalore is likely to affect the capital values positively one can easily expect an appreciation of 10-15% after the metro starts operating. Localities such as Bannerghatta Road and Kanakapura Road mostly attract end users rather than investors due to slow appreciation expected from these localities.
The investors can only reap good benefits after 3-4 Years. From the real estate perspective, Bannerghatta Road is the most popular as it is dominated by BPOs and IT companies, therefore the area is excelling in terms of residential property in Bangalore.