JOIN USIf you think that half a crore rupees is too tight a budget for a decent home in Bengaluru, you could actually be in for a pleasant surprise. Bindu Gopal Rao does a realty check on what’s on offer
Bengaluru is among the most vibrant markets in India as far as real estate is concerned. The sector has something to offer for every taste and budget. If you have a budget of Rs 50 lakh and are wondering what you could covet in the real estate sector, here’s your answer.
Places like Sarjapur, KR Puram, Hoskote and BTM Layout are some of the real estate hotspots. Even the value and potential of areas like CV Raman Nagar and Whitefield is on a tremendous rise, making them ideal investment options.
Some of the major areas for budget apartments include Rajarajeshwari Nagar, Panathur, Varthur Road and Horamavu and for budget plots, you can look at Jigani, Hoskote and Mysore Road.
Since Bengaluru is a growing city, realty investments can be made almost in all locations across the City. Electronics City is the perfect example, thanks to the IT Boom. Lately, North Bengaluru has also witnessed enormous growth – with the mushrooming of IT companies, industries and educational institutions – and it promises good appreciation value.
The prices of properties are based on myriad factors like size, accessibility, amenities and facilities provided by the builder. With a budget of Rs 50 lakh, you can purchase a two-BHK flat in an upcoming locality or even invest in plots in areas that show immense promise.
Trivita Roy, AVP, research and real estate intelligence service, JLL, India, explains, “For apartments within Rs 50 lakh, look towards Bannerghatta, Sarjapur Road, Electronics City, Begur Road, Mysore Road and Horamavu and for plots, head to Chandapura, Yelahanka, Dodaballapur, Anekal, Jigani and Begur.” Bannerghatta, and Electronic City also have plots that fit into the budget.
Data indicates that the top markets for both apartments and plots and layouts are located towards the outskirts of the City – which are almost equally distributed in the north, west and south directions.
“This is in contrast to other metros where launches of projects in these categories are mostly happening in one direction,” says Lalit Mangal, co-founder and CTO, CommonFloor.com.
Numbers say it all
Bengaluru has seen the launch of several projects that offer properties within a budget of Rs 50 lakh, according to the data available with Commonfloor.com for June 2014 to June 2015. Of these, almost 70 per cent comprised apartments, while plots and layouts accounted for the rest.
“Further, data also suggests that out of the total new supply, more than 50 per cent apartment projects comprised at least few options in the below Rs 50 lakh price range. While in the plots and layouts category, at least 75 per cent of the projects launched had options in the said price range. This could be due to the fact that most of the plots and layout projects were launched in the outskirts of the City where prices are relatively cheaper and are targeted for long-term investors. Though for few projects, the location may not seem favourable right now or even the sizes may not be liked by many, City developers are keen to have this category alive in the midst of the current slow buyer sentiments,” explains Lalit.
Considering that Bengaluru faces a crunch in terms of land space, investing in flats offers more advantages than investing in plots. “Towards the outskirts of the City, there are a wide range of properties that are within Rs 50 lakh and provide good returns in the long run since there will be appreciation in the market value,” says Guha Laxmanan, director, Casa Grande.
“Areas like Marathahalli and KR Puram still have affordable projects, that is, within Rs 50 lakh (say for a 1000-sq-ft apartment). Places like Jayanagar, JP Nagar and BTM Layout are also good with many choices for some affordable housing.
Upcoming real estate brands have also expanded their realm and are climbing up to luxury housing. Outskirts like Hoskote even have three-BHKs available for Rs 44 lakh from upcoming real estate builders. Whitefield is an area that has a varying price range from Rs 41-49 lakh for both two and three-BHKs. Looking at Kanakapura Road and the vicinity, the projects available fall under the category of Rs 43-49 lakh. When it comes to the plots in areas like Yelahanka and KR Puram, the price ranges between Rs 40-45 lakh,” opines Gopal Reddy, managing director, Concorde Properties.
Investment matters
One of the main questions that pops in our mind when it comes to budget properties is the appreciation potential. Fortunately, since there is constant growth in the market value in all the localities and areas of Bengaluru, there will be good returns in such investments in the long run.
“These properties should be invested in for the medium to long term within the time frame of at least 3-5 years. An appreciation of 25-50 per cent can be expected by the end of this time frame. Year-on-year appreciation will be marginal in these locations for such properties,” opines Trivita.
“Considering the current market trends, one can expect an appreciation of around eight to twelve per cent for apartment’s year-on-year value, based on the locality and the type of builder. For plots and layouts, it is anywhere between 8-10 per cent year-on-year. However, in the light of the new infrastructure push being given by the government including the metro, Peripheral Ring Road etc., one may expect slightly higher appreciation if the projects commence as per schedule,” adds Lalit.
With caution
While having the budget in mind, the investor should look into some crucial factors like the credibility of the builder, market value appreciation, accessibility, quality of the project, amenities and facilities offered by the builder.
Do ensure that legal documents and approvals are in place as well as you are sure of the builder’s reputation and construction quality. “While shopping for properties in Bengaluru on a budget, one must consider the other costs such as charges towards amenities, parking and registration. All these together can add up to a minimum of Rs 7-10 lakh depending on the type of property. Also, a buyer needs to check if the construction quality is good and if the project has all approvals,” advices Trivita.
It is also important that buyers check the multiple hidden costs within the said property. “It is also important that buyers don’t get lured by the lucrative marketing pitches made by few builders. One must verify all the details and then take the plunge,” advices Lalit.
So, ensure that you make the right decision as your home is the biggest investment of your life and it is important to get it right.