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How is the real estate market in Bangalore? Is it a good area to invest?

Bangalore is widely known as a tech city since the emergence of IT and ITes companies. Real estate property value has escalated as young techies in the city choose to stay in apartment complexes near their offices. Though Bangalore has always been a happening market as far as real estate was concerned, there is a myth that one can get a 20% return on investment
The reality is that many investors are confused and cannot decide where and when to invest in Bangalore. If they can find an area, then the dilemma is about the right timing. The most common question people ask is when is the right time to invest.
Residential real estate demand is picking up after the pandemic. While other cities saw discounts on real estate prices, there was no apparent reduction in Bangalore. On the contrary, developers are looking at higher prices due to the rising input costs and labour shortages.

The right time to invest

The opening of the market after lockdown has seen renewed demands in the complete or near-completed projects. While the real estate market expects good demand in the coming years with the prediction of a $1 trillion market by 2030, it is the right time to invest now as the market is on an upswing.

Market watchers have pointed out the age group of investors has shifted from 41- 50 years to 30-40 years. According to real estate developers, 60-70% of buyers are in this age group. It signifies the purchasing power of the target market, and that has led to the demand.
While there is a backlog of unsold inventory in Bangalore, it is the lowest compared to other cities. With RERA (Real Estate Regulatory Authority) now fully operational, it has brought transparency in the realty market and fraudulent and smaller players either being forced out of the market or complying with the regulations. The mandatory registrations have to comply with, and the project has to complete within deadlines. Investors can be rest assured of their investments being safe with the trend in the real sector witnessing an upward trajectory.

Investing in rural areas

With real estate prices on the higher side, it is prudent to invest in properties on the city outskirts. Some of the key reasons why one should invest in rural properties:
• IT companies are now moving out to the outskirts of Bangalore because of the availability of large spaces and lower prices. People who want to buy properties only for investment purposes will find it beneficial to let out these properties to employees of the IT companies.
• The north of Bangalore is on the outskirts of the city and is close to the international airport. This place sees many fliers and business people, and it is an excellent area to invest in. Also, the metro rail connectivity is there, making it an attractive location for owning a property.
• The price of properties is lower in the rural or outskirts area. They also give a better return on investment.

Takeaway

A good reason to invest in real estate property is that many areas in Bangalore have a rent to EMI ratio of 70% To 75%. Thus, it is profitable to invest as a buyer in a property and pay EMI, which is marginally higher only.