Bangalore, also known as the Indian Silicon Valley, has remained as a frontrunner of the growth and development of the asset market. In the recent past, the city was seen topping the realty charts and is thriving with new launches across the real estate sector. Be it contemporary residential units, commercial spaces or retail hubs, there have been some major developments leading to expansion and appreciation in the past decade. The following article will discuss about the current real estate scenario of Bangalore and its rental property trends.
An Overview of Bangalore Realty
The state-of-the-art business districts like Electronic City and Whitefield have helped transform the city into a cosmopolitan core of commerce and trade in India. Because of such development activities, there has been a spurt of residential activities all across. Integrated residential developments have been upbeat due to the growing demands for self-contained habitations in metro regions.
The new residential projects like Prestige Lakeside Habitat, Hiranandani QueensGate and Nikoo Homes are spearheading innovation and decisive growth in the property market of Bangalore. The city is ripe with premium projects that are part of well planned residential locations, world class amenities and well-developed infrastructure. All these factors have elevated Bangalore’s realty segment to a standing for world recognition.
There are several foreign investors eying investments in the city. These include Singapore’s Jumabhoy family and Singapore’s government wealth fund GIC. They will be venturing into the luxury residential plus commercial segments of Bangalore. Among the Indian players, Bhartiya, Prestige Group and House of Hiranandani have sustained their development sprees and have adorned the real estate market with quality projects.
The government has also remained supportive and has helped boost the infrastructure by broadening service lanes, constructing elevated expressways and improving connectivity with rail and metro.
The real estate of Bangalore is mature and has been faring well in comparison to other cities. The leading developers have managed to deliver the completed projects and meet the delivery schedules on time. Such efficiency, timely possession and provisions for modern-day realty solutions are creating a sense of gratification among the buyers. Now with the regulatory framework in place and eased FDI policies, the growth prospects of Bangalore real estate are brighter than ever.
Rental Real Estate
The real estate in Northern Bangalore is said to be witnessing a spike in rental values. Taking a house on rent in Bangalore’s northern region may get a little more expensive now as the region has recently undergone an increase in rental values, but the trend will be a profitable option for investors. The Banaswadi area saw nearly 25% climb in residential rental values for the quarter ending September 2013.
The localities of North Bangalore have been experiencing higher enquiry from potential residents and despite maintaining a low profile in the past, Banaswadi is offering great investment opportunities for those who wish to gain from rental returns. This is majorly due to better connectivity and the set-up of IT cluster in and around the area. These factors are pushing investors to purchase real estate here.
At present, a flat covering an average of 800 square feet to 1000 square feet with all amenities can be rented for Rs. 18,000 to Rs. 25, 000 per month. Nearly six months ago, these flats were available for up to Rs. 15,000 per month. However, in spite of the appreciation in rental rates, rental homes here are still affordable in contrast to other locations of Northern Bangalore. Areas like Hebbal, Hennur and HBR Layout are offering rental property that starts from Rs. 25,000 a month.
Author bio: A writer by profession, Devika Arora is dedicated to studying the current property trends and compiling facts for the benefit of potential investors and tenants. Her articles and other write-ups analyze the realm of properties and their prospects. The above piece of work discusses about rental property in Bangalore.