Second buyers eye North Bangalore as their preferred location

We read many articles on the web which states Bangalore is a safe place to invest. Many articles state that Bangalore’s real estate market is the most resilient and many more. Are all these true? Yes, it is true to a great extent. The HSI (Housing Sentiment Index) in its review of the quarter ending September 2014 reported that in spite of whole of Indian real estate market slowing down, Bangalore has attracted second buyers with 23 percent of the people living in their own houses are opting to buy a second home. The market watchers opine that the areas in demand are Thanisandra, Hebbal, Yelahanka and RT Nagar. The market watchers also feel that these buyers are eying on properties located in these areas as they can’t afford properties which are centrally located like Jayanagar, Koramangala or Sadashivanagar. Their moot intention is return on investment from their property.

Let’s investigate the buyers’ profiles to know more about the changing face of the market. The experts note that this part of the city has many senior officials of companies that are present who are buying such properties. They also say that there are considerable number of enquiries coming from cities like Kolkata and Mumbai too.

Appreciation of value and Return on investment: The key reason.
The quarterly Indian apartment Index (PropIndex) data shows that in the quarter Jul-Sept. 2014, most of the Bangalore’s localities have seen a rise of the prices. This report shows that prices of property have risen by 80 per cent in the last three years compared to the prices of 2011. A square feet which cost about Rs.2, 900 to Rs. 3, 800 in 2011 is priced at Rs. 4, 900 to Rs. 6, 700.

Areas like R. T Nagar and Thanisandra has witnessed a price rise of about 41 and 53 per cent during the last three years. Hebbal, R. T .Nagar and Thanisandra are within a radius of ten kilometers from each other. All these areas have good connectivity and have easy access to airport and also are located amidst numerous IT parks in the vicinity. It is noted that Hebbal’s property prices are a bit higher being 10 per cent more than Thanisandra and R. T Nagar. Along with these, Yehalanka is also an area that has noted a marked price rise due to its proximity to airport and all other infrastructure being added gradually. Yehalanka has witnessed a price rise of 25 percent in the last three years. These areas of North Bangalore are about 15 to 20 minutes distance from Central Bangalore and with the airport becoming operational the land development is also occurring at a jet speed which is forging the real estate market ahead.

What is currently on offer?
2 and 3 BHK residential flats are presently on offer in these areas. The size ranges from 900 to 1700 square feet Plots can also be bought in these localities with majority of plots in Yehalanka in sizes of land ranging from 1200 to 2400 square feet

Every locality in North Bangalore has yielded good returns on investment in the past. With the growth of IT and ITeS segment and the proposed infrastructural development real estate market of Bangalore is poised for steady growth and yield high returns for those planning for a second investment.