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      Ultimate Guide for Bangalore Real Estate Investment

      Ultimate Guide for Bangalore Real Estate Investment

      Bangalore, the capital city of Karnataka, is one of the fastest-growing cities in India. It accounts for some of the large IT investments in the country. It is situated around 3, 113 Ft. above sea level in the Karnataka Plateau and the home to a population of around 12 million people. The population has been rising in Bangalore ever since 1950 as the city started investing largely in the education and public sectors. With all the developments in the commercial sector, Bangalore opened up thousands of employment opportunities for people in and out of Bangalore. 

      The city was known for its manufacturing industries before 1990 after which new national economic liberation policies and strong educational systems encouraged the development of the IT sector in Bangalore. After the massive development of the IT sector, Bangalore turned into an IT hub that hosts several national and international companies.

      Bangalore Demography

      Bangalore, the Silicon Valley of India has an estimated population of around 12, 764,935. The population of Bangalore can be further divided as 41% Kannadigas, 25% Tamilians, 14% Telugites, 10% Keralites, 8% Europeans, and 6% a mixture of all races.

      Kannada is the most commonly used language along with languages such as Tamil, Telugu, Hindi, Malayalam, Marathi, Konkani, etc. The Telugu and Tamilians also share a long history in the capital city of Karnataka along with the Kannadigas, as most of them migrated to Bangalore for better livelihood, the standard of living, education, etc. The male and female sex ratio of Bangalore is 908 females to every 1000 males. The current literacy rate among the Kannadiga female population is 84.8% while the male population accounts for 91.82%.  

      The real estate sector has been booming in Bangalore over the past few years. One of the main questions while planning an investment in Bangalore is the land rates. It is the fourth most expensive city to invest in in India and the real estate demand is driven by professionals that are looking forward to prospering their living standards by settling in Bangalore. Let us further understand the land rates and pricing trends in different parts of Bangalore. 

      Land Rates in Bangalore

      The land rates in Bangalore vary from one area to another. The average cost of investing in Koramangala is around Rs 5,820 per sq. ft. while rates in Rajaji Nagar are Rs 11,100 per sq. ft. Properties in Ashok Nagar cost around Rs 22,780 per sq. ft. while Malleshwaram around Rs 12,200 per sq. ft. 

      The price of the property varies based on its proximity to commercial centers, schools, colleges, hospitals, shopping complexes, hangout spots, provision stores, etc. Improvised infrastructure and connectivity are other add-ons to the rates imposed on the property. The value of the property also varies depending on whether the property belongs to the Khata A or Khata B list of properties.

      Bengaluru Real Estate Market Forecast 2024

      In 2023, the Bengaluru real estate market is expected to soar, predicts Knight Frank’s “Asia-Pacific Outlook 2023”. Among the 24 APAC cities, Bengaluru was singled out as the second-best market to watch. Residential price growth is expected to reach 5% YoY, the highest rate among the top three Indian markets tracked by the report.

      According to the report, Binnypet, Devanahalli, and Doddaballapura in particular are predicted to have a big impact on the growth story. Due to their excellent connectivity, strategic location, and proximity to important business districts, these areas have been identified as real estate investment hotspots.

      According to Parikshit Pawar, CMO of a real estate company in Bengaluru, Binnypet is particularly gaining interest from both homebuyers and developers because of its connectivity to the rest of the city. Commercial districts like Chickpet, Chamrajpet, and Okalipuram, which have a lot of office foot traffic, surround Binnypet. Due to this, it makes for a prime location for both residential and commercial development.

      On the other hand, Devanahalli and Doddaballapura have benefited from the increase in demand for plots. Adarsh Narahari, co-founder and managing partner of a real estate firm, observes that several plotted developments priced under Rs 1 crore have recently been launched in these areas. Due to its proximity to the important business district of Hebbal in North Bengaluru via the six-lane highway, Devanahalli is especially important. In addition, Whitefield, which is located an hour away by car, is connected to the region. To connect Doddaballapura from the Hindupur Road to Dobbaspet via Tumkur Road, Devanahalli from the Hyderabad Road, and Hoskote Road from Kolar Road, Phase-I of the Satellite Town Ring Road (STRR) will be constructed.

      With residential prices expected to rise by 5% YoY, Bengaluru’s real estate market is expected to expand significantly overall in 2023. Due to their strategic locations, connectivity, and proximity to important business districts, Binnypet, Devanahalli, and Doddaballapura are anticipated to be the principal drivers of this growth.

      RERA Karnataka

      The Real Estate (Regulation and Development) Act, 2016, is a very prominent legislation introduced with the objective to bring in transparency and accountability in the real estate sector. The Karnataka government notified the RERA Karnataka Rules in 2017.

      The RERA Act mandates the registration of real estate agents and builders. The Act also mandates the registration of projects. All the registration processes can be carried out through the government portal of the Karnataka RERA. Some of the documents required by builders for registering themselves include a PAN card, a title deed, an encumbrance certificate, a completion certificate, etc., on the other hand, the documents needed for a real estate agent include a PAN card, photograph, details of his company, etc. For the registration of the projects, it is necessary that you submit documentation such as the tax receipts, commencement certificate, sanctioned plan, and layout, sales agreement, advocates report, etc. 

      The Karnataka RERA also provides some rules for advertisement and some of them include that:

      1. The digital portals are to be self-maintained. 
      2. Mention the date of receiving the completion certificate.
      3. The display board at the project site contains the RERA Karnataka Registration number, etc.

      Stamp Duty taxes in Bangalore

      Stamp duty charges are imposed at the time of the sale of the property. The stamp duty taxes have to be paid mandatorily in accordance with the provisions of Section 3 of the Indian Stamp Duty Taxes Act. The state government imposes stamp duty taxes. Some of the factors affecting the stamp duty taxes include the age of the property, the age, and gender of the titleholder, the location of the property, etc. 

      The different stamp duty rates in Bangalore have been mentioned in the table below:

      Type of property

      Stamp duty

      Registration charges

      Properties less than Rs 20 lakhs

      2%

      1%

      Properties priced between Rs 20 lakhs to Rs 35 lakhs

      3%

      1%

      Properties priced between Rs 35 lakhs to Rs 45 lakhs

      3%

      1%

      Properties above Rs 45 lakhs.

      5%

      1%

       

      You can calculate stamp duty charges online through Kaveri, the official government website.

      Investment opportunities

      Real estate investment has been recognized as one of the best forms of investment as it is appreciated over time and stands as security for a long time. It also provides you with rental income if invested in rental properties. Bangalore has been treated as one of the best spots for real estate investment. Bangalore is booming and this offers investors a better livelihood, a better standard of living, and also better capital appreciation. Some of the factors that make Bangalore a hotspot for investment are listed below

      1. Growing investments in the IT sector
      2. Proximity to the prime locations
      3. High rate of appreciation
      4. Peaceful living
      5. good returns
      6. High rate of appreciation

      Best location for real estate investment in Bangalore in 2024

      There are a few areas to take into account if you’re thinking about investing in real estate in Bangalore in 2024. These places are well known for their quick expansion and development as well as their accessibility to contemporary conveniences and amenities.

      Hebbal is considered to be one of the best areas in Bangalore to invest. This location is renowned for its outstanding connectivity, making it perfect for both residential and commercial uses. The region is a hub for employment opportunities because it is home to numerous IT parks and top businesses.

      Hennur is another place that you ought to think about. This region is renowned for its tranquil atmosphere and lush green surroundings. The area is conveniently connected to other areas of the city, making it the perfect choice for people looking for a quiet and comfortable lifestyle.

      Electronic City is the ideal choice if you’re searching for a reasonably priced area to invest in Bangalore. This neighborhood is well known for being reasonably priced and for having great access to other parts of the city.

      Another area in Bangalore to think about for real estate investment is Whitefield. It is the perfect choice for those looking for a place to live and work because it is a commercial hub and a residential area with rapid population growth.

      You should also think about investing in real estate in Yelahanka, Devanahalli, Thanisandra, Sarjapur Road, Bannerghatta Main Road, and Kanakpura Road in Bangalore. The superior infrastructure, social amenities, and growth potential of these areas are well-known.

      Commercial real estate investment in Bangalore

      Bangalore has been a hotspot for commercial real estate investment. Bangalore has also been referred to as the silicon valley of India due to the presence of several IT companies operating on its soil. Investing in commercial real estate is more profitable than investing in residential real estate property as it earns the investor better capital appreciation and income in the form of rent. While planning investments in the commercial real estate sector, you can invest in office spaces, malls, showrooms, retail, etc. Even though investments in commercial real estate may be a little expensive, it is definitely more yielding compared to other real estate sectors.

      Best location for commercial real estate investments

      The North Bangalore region is one of the best options for commercial real estate investments as it is the fastest-growing locality in Bangalore. Hebbal, Hennur Road, and Thanisandra Main Road are some examples of localities offering good commercial investment options. Outer Ring Road, Marathahalli, and Whitefield are some of the other great locations for real estate investments.

      Residential real estate investments in Bangalore

      The Bangalore realty market has been a hotspot for both commercial and residential investments. The demand for residential real estate arises mainly from the professionals that shift from different parts of Karnataka and India in search of better employment and a standard of living. Bangalore offers its citizens a great quality of life as education, healthcare, and recreational activities are offered at their best. 

      The Bangalore residential market comes with both monthly benefits and capital appreciation. The increased number of youth, migrating to Bangalore in search of jobs or for educational purposes, tends to lead the charts for rental demand in the city. By investing in residential rental properties, the investor is assured of tenants and also a good monthly income in the form of rent.

      Best location for residential property investments in Bangalore for 2024

      In terms of the residential outlook, Bengaluru is predicted to be the second-best market to keep an eye on among the 24 markets in the APAC region, according to Knight Frank’s “Asia-Pacific Outlook 2023”. The report emphasizes that Bengaluru’s residential prices are anticipated to increase by 5% YoY, the highest growth rate among the top three Indian markets the report has been tracking. Experts predict that the cities of Binnypet, Devanahalli, and Doddaballapura will be key players in this growth story.

      Due to its strong connectivity and close proximity to commercial districts like Chickpet, Chamrajpet, and Okalipuram, Binnypet, which is located in the city’s center, is drawing interest from both developers and homebuyers. Devanahalli and Doddaballapura are also benefitting from the rise in demand for plots. Devanahalli’s connectivity via the six-lane highway to the major business district of Hebbal in North Bengaluru and its connection to Whitefield makes it a vital area. Meanwhile, Phase-I of the Satellite Town Ring Road (STRR) will be connecting Doddaballapura from the Hindupur Road to Dobbaspet via Tumkur Road, Devanahalli via Hyderabad Road, and Hoskote road via Kolar Road.

      Industrial investment opportunities in Bangalore in 2024

      There are a few areas to take into account if you’re thinking about investing in real estate in Bangalore in 2024. These places are well known for their quick expansion and development as well as their accessibility to contemporary conveniences and amenities.

      Hebbal is considered to be one of the best areas in Bangalore to invest. This location is renowned for its outstanding connectivity, making it perfect for both residential and commercial uses. The region is a hub for employment opportunities because it is home to numerous IT parks and top businesses.

      Hennur is another place that you ought to think about. This region is renowned for its tranquil atmosphere and lush green surroundings. The area is conveniently connected to other areas of the city, making it the perfect choice for people looking for a quiet and comfortable lifestyle.

      Electronic City is the ideal choice if you’re searching for a reasonably priced area to invest in Bangalore. This neighborhood is well known for being reasonably priced and for having great access to other parts of the city.

      Another area in Bangalore to think about for real estate investment is Whitefield. It is the perfect choice for those looking for a place to live and work because it is a commercial hub and a residential area with rapid population growth.

      You should also think about investing in real estate in Yelahanka, Devanahalli, Thanisandra, Sarjapur Road, Bannerghatta Main Road, and Kanakpura Road in Bangalore. The superior infrastructure, social amenities, and growth potential of these areas are well-known.

      Best place for Industrial property investments in Bangalore

      Some of the best locations for industrial real estate investments includes Peenya Industrial Area, Doddanakundi Industrial Area, SSI Industrial Area, Rajaji Nagar, DDK Industrial Area, 1st Phase, Petechannappa Industrial Area, Kiadb, Dobbaspet, Bidadi Industrial Area, Dyavasandra Industrial Area, Jigani Industrial Area, Kumbalgodu Industrial Area, etc.

      Top reasons to invest in Bangalore real estate

      Real estate investments in Bangalore are never disappointing as it is booming and the demand for commercial and residential real estate properties is increasing. The city offers better employment opportunities and also a better standard of living. The city has also advanced in technology, transport, connectivity, luxurious establishment, etc. Some of the top reasons to invest in Bangalore include:

      1. Bangalore is the IT hub of India and referred to as the Silicon Valley of India due to which several IT professionals shift to Bangalore in search of jobs. 
      2. Bangalore real estate offers a higher return on the property. 
      3. The tax benefits by investing through leverage
      4. Bangalore also has a steady real estate market. 
      5. If investing now, you may buy a property at a much less cost as stamp duty has been reduced for affordable housing units, and also the builders offer certain discounts to make properties more accessible for clients. This is due to the prevailing pandemic conditions.

      Pros and Cons of investing in Bangalore Realty Market

      All investments have advantages and disadvantages. Some of the key advantages of investing in Bangalore real estate includes:

      1. Higher return on investment
      2. Better rent
      3. Superior connectivity and infrastructure
      4. Better standard of living and access to amenities such as schools, colleges, healthcare units, shopping centers, etc. 

      Despite all these advantages, Bangalore investments have disadvantages of being expensive and the outskirts of Bangalore city is not as secure as it is in the main city. The developments of some of the neighborhoods in Bangalore are also not certain. 

      How to Invest in Bangalore Real Estate with Assetmonk

      Assetmonk is a smart investment platform offering some of the top-class properties for investment in major Indian cities like Bangalore, Chennai, and Hyderabad. We offer properties only after conducting thorough due diligence and stringent selection criteria. Quality of the service is our top priority and we are accessible just a click away. Invest now and earn an attractive IRR of up to 21% along with fixed returns and capital appreciation from the high-growth potential assets.

      Bangalore Real Estate Investment FAQ’s:

      Q1. Is real estate a good investment in Bangalore?

      Yes, real estate investment in Bangalore is a good option as it earns the investors a high return on their investment. Bangalore is a city with a large migrant population and thus by investing in rental real estate property, you can also earn a good and stable income in the form of rent. Bangalore city offers a better standard of living a better livelihood and also a modernized lifestyle. Thus investing in Bangalore is a good option.

      Q2. How to invest in wholesale real estate in Bangalore?

      You can invest in wholesale by conducting property research of the local market and curating a buyers list in the area you are planning to invest in. you are also required to secure funds to invest. Then you may start to invest by searching for the most potential wholesaling properties. It is recommended that you conduct thorough due diligence and review various properties before finalizing your investment.

      Q3. What is the best investment in Bangalore?

      Investments in commercial or industrial real estate can be a good option as they earn you high rental incomes. In the case of industrial real estate property, you have the benefits of long-time lease agreements. However, finding tenants may not be easy for these types of properties like it is for residential real estate property.

      Q4. How is real estate in Bangalore now?

      The Bangalore real estate market is booming and has been an attractive spot for investment. The pandemic has brought in certainties however, the government and the builders have taken efforts to ensure that properties are available to buyers at many affordable rates. The government has reduced stamp duty tax on affordable housing units and the builders have also given discounts to help the buyers invest at a much affordable rate.  

      Q5. Which is the best area in Bangalore to invest in?

      Some of the best locations for real estate investments include North Bangalore regions such as Hebbal, Devanahalli, etc.; South Bangalore regions such as the BTM Layout, Silk Board signal, Bannerghatta Road, Electronic City, Sarjapur Road, etc.; Whitefield in the East Bangalore region and Nayandahalli in the West Bangalore region.

      Q6. Is it beneficial to invest in flats in Bangalore?

      Yes, investments in flats is a good option as the population of Bangalore is increasing and many are migrating Bangalore in search of jobs and education. By investing in flats, you can both secure your home or give it on rent and earn rental income. 2BHK and 3BHK have been the most demanded type of property.

      Q7. Why is Bangalore real estate booming?

      Bangalore real estate is booming with the increasing number of commercial investments in the city. The city has several IT companies which have been instrumental in opening up employment opportunities for the youth. The supreme infrastructure and connectivity are some of the other reasons why the real estate market is booming in Bangalore.

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