Trend Analysis Of Bangalore Real Estate Residential Segment

Buy sell Property & Real Estate Investment Guide

Buying Property Tips#1: Choose the Right Location
Before you choose a location, it is of utmost importance that you consider the development prospect of the area. Other factors to consider here is crime record of the area, availability and nearness of public facilities and utilities.
Buying Property Tips#2: Study the Local Market Dynamics
It is important to get well familiar with the local realty market. Learn the variation in property prices by street. Don’t shy away from asking a few realty investment agents questions to get better insight on the matter.

The Silicon Valley of India, Hi tech industrial city, dream place for startup companies with all these combined with ever cool weather Bangalore has become a hot spot for people looking for jobs as well an ideal place for families to settle down. Excellent job opportunities, ravishing night life, malls and Cineplex's to satisfy the entertainment needs attracts younger generation to Bangalore. The property market has a direct impact as more and more people are looking out for residential unit's .The demand is high from both the buyers as well as tenants. Let us have a look on the insight of the demand and supply of residential market of Bangalore.

As per the recent report Bangalore has shown an upward trend in every quarter during the last few years. The main reasons are buyers sentiment, ability to bounce back from extreme situations, climatic conditions etc. The state government has also come up with various measures to develop the city, such as allotting 35 billion Rupees for the development of Chennai Bangalore Industrial corridor; it is also encouraging absorption of commercial space by the IT sector by collecting 5% metro cess on the new layouts

The steps taken by government to improve the IT segment along with strong buyer's sentiments have an impact on the property demand in Bangalore. More and more players are entering into the market and the existing sellers hold their units anticipating a northern growth in the residential market

Buying Property Tips#3: Choose the Right Property
Getting the right property right away is quite unlikely. First, you need to be clear on why you want to buy an investment property. After that, you will be able to make right decision based on factors like remoteness or accessibility of the property.
Buying Property Tips#4: Do the Math Properly
Get a precise idea on the value of assets you have available. If you are investing in rental property, make sure you can easily cover the mortgage payment through rents. Additionally, get a clear idea on the appraisal value of the property beforehand.
Buying Property Tips#5: Consider Additional Expenses
When purchasing an investment property, it is not only the selling price that investors need to consider. There are various additional expenses such as property tax, home owner’s insurance, repair & maintenance that must be considered.

Trends

  • The last quarter of 2016 saw residential apartments holding 82% of the total share as against 81% in the first quarter of 2016.
  • Constant demand was seen in affordable, mid income and high income properties to luxury and ultra luxury villa segment. However the demand for houses between 50-60 Lakhs was high occupying 30% of the population
  • The Mid and High income segment also saw a rise by 1% moving the demand to 29% in the first quarter.
  • An analysis of the type of apartments revealed that 50% of the buyers prefer a 2BHK ranging from 800-100 sq.ft where as the 40% of them prefer bigger 3 BHK units. The trend remained the same through the year
  • Ready to occupy dwelling units were preferred against under construction units .The reason is to avoid the risk of delayed delivery and to save on rent. The ratio stands at 52: 48 percentages favoring the ready to move ins.

The Bangalore realty market has fulfilled the demands to a greater extent, In other words, localities like south and East Bangalore, which is dominated by IT companies. West Bangalore known for its connectivity and North Bangalore preferred by high end buyers fulfilled the realty demands of various segment people. Bhanashankari, Hebbal , Jayanagar are some areas preferred by buyers to reside as it is slightly away from the city frenzy. However Whitefield, Malleswaram, Richmond circle etc are preferred for setting up commercial units. For investment purpose people look for buying and renting in areas like Whitefield, electronic city, Marathahalli as it is the IT HUB and the rental appreciation is quite high.

Buying Property Tips#6: Inspect the Property
To ensure that you are getting everything you are paying for, a thorough inspection of the property is essential. Besides ensuring that you are not overpaying, a rigorous property inspection also gives you a good estimation on what the additional expenses might be.
Buying Property Tips#7: Pick the Right Financing Option
While interests on investment property loans are tax free, some borrowing costs aren’t immediately tax deductible. Knowing that, and structuring your financing in accordance is crucial. Don’t hesitate to ask for help from a financial advisor.
Buying Property Tips#8: Invest through Equity
One of the best ways to purchase an investment property is to leverage the equity of another property (including your primary home). This is a preferable way among regular investors, especially due to added tax deduction advantages.
Updated: April 3, 2017 — 8:09 am
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