Bangalore has grown exponentially over the past few years. The presence of many IT companies and related industries has transformed this quaint retirement hub into a major cosmopolitan city. This growth has also increased the demand for housing and with a majority of the workforce coming in from different parts of the country and abroad, there is a good demand for rental properties here. Investment in real estate is quite lucrative and yields high returns over a period of time. It is also the preferred investment option for newbies – who are just stepping into the realm of real estate investments. Wherein there is a monthly rental return as well as property appreciation over a time period.
Having said that, choosing a property for investment is not easy, it is a daunting and formidable task. An investor has to consider a wide variety of factors before zeroing in on the best property that is ideally suited. Projected capital gain for the property which is influenced by current and proposed developments, especially infrastructure of the area is an important consideration point. Projected rental returns is another factor and areas close to Tech parks or near the metro are preferred and gets a better yield when compared to the suburbs.
Areas in East Bangalore include Bellandur, CV Raman Nagar, Hoodi, Kr Puram, Mahadevpura, Marathahalli, Varthur, and Whitefield.
These areas have well established IT and allied sector with many tech parks such as ITPL, Brigade tech park, Embassy tech park, Bagmane tech park, etc. In fact, areas such as Bellandur, Marathahalli, and Whitefield has seen a steady increase in demand for rental property over the years. Areas of Hoodi and KR Puram is also preferred owing to its proximity to these IT hubs and the availability of affordable and economic housing options. The ongoing average rental rate for a 2 BHK in Bellandur is Rs 31000 while it is around 15-16 K in whitefield and KR Puram. The comparatively low rentals here can be attributed to a lot of ongoing infrastructure construction and the resultant traffic issues. However, once the Metro connectivity to the area is established, the rentals can see a steep increase. At present varthur falls in the economic category with the rental income here being in the range of Rs 8K to Rs 11K.
Areas in North Bangalore include Hebbal, Jalahalli, Mathikere, Peenya, RT Nagar, Vidyaranyapura, Yelahanka, Yeshwantpur.
Areas of North Bangalore enjoys supreme connectivity to all parts of the world due to the proximity to Kempegowda International Airport. In fact, most of Yelahanka’s growth can be attributed to this aspect. Another aspect is well maintained and wide roads that ensure that you are not endlessly stuck in traffic. Metro line and proximity to the outer ring road, Bellary and Tumkur road offers unsurpassed connectivity to the areas of North Bangalore. Several IT parks like Manyata tech park, Kirloskar tech park, and Devanahalli business park has opened access to lucrative jobs here. These factors have added to the demand for housing and prospects of a good rental yield here. The houses here are in the affordable range which is what young investors prefer. The average rent for 2 BHK flat in Devanahalli is around Rs 17000 and some of the credit can be credited to the presence of the hill station of Nandi hills here. Hebbal, Yelahanka rentals are in the Rs 12000-17000 range while average at RT Nagar is Rs 22000. Jalahalli is the most economic area with the average rental for a 2 BHK here being Rs 9000.
From an investment point of view, it is advisable to invest in North Bangalore as the property prices here are still in the affordable range. Proximity to the city as well as the Airport is bound to push property rates here. The presence of reputed builders like Vajram Group is another plus point. You can invest in a well conceived and executed flat with a reputed builder here and enjoy the high returns at a later stage. Vajram Tiara is one such project with premium 3 & 4 BHK condominiums. With 70% open space and aesthetic green landscapes and water bodies, the project offers a premium living space with modern amenities and superior connectivity to the city.
Properties in East Bangalore, on the other hand, are quite expensive and with a lot of ongoing infrastructural developments here – expected to remain stagnant. However, those focusing on convenience and space can look for premium luxurious houses with Vajram Esteva. This project is located in Bellandur and offers an unparalleled urban lifestyle with a fine mix of retail store and residential spaces within the same project. Proximity to 8 major tech park gives an edge to this project as employees who opt for Esteva can actually walk to their workplace. There are well designed and executed apartments with options of 3BHK and 4 BHK available for sale.