The top places to invest in Bengaluru real estate

Bengaluru has emerged as a shining spot for real estate investors offering a sound return on investment and assured rental income. With the IT/ ITeS sector driving real estate demand, the city boasts of strong macroeconomic dynamics and stability.

Despite demonetization, property prices in Bengaluru have not witnessed any violent fluctuations or crash and the real estate market of the city hasn’t lost its momentum. According to experts, around 40% of the under-construction projects will be ready-to-move-in the next three-four quarters.

For investors looking for a stable market with a long-term horizon, Bengaluru provides many attractive options. Most of these residential hubs are self-contained units with amenities such as parks, hospitals, schools and colleges, retail outlets, and restaurants. Here’s a list of five promising residential hubs to help investors make an informed choice:

North Bengaluru

The northern zone of the city gets a thumbs up from most experts as a viable long-term investment option.

Property values are on the rise here due to connectivity via the Outer Ring Road (ORR), proximity to the Kempegowda International Airport and easy access to the Central Business District.

The Yelahanka area is home to many defence establishments, making it a safe and peaceful residential option. Other areas like Hebbal, Devanahalli and Thanisandra are investment favourites due to large banks of undeveloped land.

Infrastructure initiatives: Real estate in North Bengaluru stands to directly benefit from the development of the upcoming Aerotropolis, IT, and Aerospace parks. Road widening projects and the development of large-sized townships are improving prospects in areas like Hebbal and Devanahalli. The proposed mono rail could also be a significant value add, if approved.

Sarjapur Road

Sarjapur Road, in the south-east part of Bengaluru, is another favourite hub for real estate investors.

With saturation hitting established office markets like Whitefield and Outer Ring Road, Sarjapur Road is on the radar of IT companies looking to set up shop. This has led to the development of a large residential catchment around the area catering to IT professionals seeking affordable residential options.

Infrastructure initiatives: The central government has approved the construction of a Peripheral Ring Road (PRR) connecting Tumkur Road to Hosur Road via KR Puram, Bellary Road, and Sarjapur Road. This major initiative would enhance connectivity from north to south Bengaluru and also lessen traffic woes around Sarjapur Road.

East Bengaluru

While Whitefield is an established corporate and residential hub in East Bengaluru, Varthur and Budigere are upcoming areas catching the fancy of many investors.

Several residential projects coming up in these localities will be ready for possession in two to three years’ time. This part of Bengaluru is ideal for investment in residential projects ranging in the Rs 70-80 lakh bracket.

The area is home to established IT/ ITeS companies as well as start-ups and promises high price appreciation and return on investment on residential properties.

Infrastructure initiatives: The buzz around properties in Whitefield has grown as it falls on the route of the upcoming Purple Line of Phase 2 of Namma Metro. South Western Railways has also started a train service from Majestic to Whitefield in the morning to ease traffic woes.

West Bengaluru

The West Bengaluru sub-market covers the areas and projects around Tumkur Road NH-4, Yeshwantpur and Rajajinagar Industrial Area.

The location has traditionally been an industrial area dominated by industrial and warehousing activity.

It offers attractive options to end users as well as investors seeking affordable housing. Land values are relatively lower in this part of the city making it an attractive entry-point for long-term investors.

Infrastructure initiatives: The construction of the Peripheral Ring Road (PRR) will lead to improved connectivity and reduced travel time to important parts of the city.

The commute time from Tumkur Road to the airport is also expected to come down once the PRR becomes operational.

BTM Layout

BTM Layout is located in close proximity to prominent locations such as Koramangala, Bannerghatta Road, and HSR Layout and boasts of sound infrastructure and multiple residential options.

The area enjoys good connectivity via the Bannerghatta Main Road, Outer Ring Road, and Hosur Road and offers several affordable and mid-range residential options. Apart from a good return on capital investment, the area also promises high rental values due to its locational advantage.

Infrastructure initiatives: The presence of metro stations such as Rashtreeya Vidyalaya Road, Jayanagar, and Banashankari has boosted the connectivity of BTM Layout to the rest of the city. The area also falls on the upcoming R V Road Terminal-Bommasandra Line of Namma Metro.

Investors should carry out due diligence and check specifically for water supply and sustainability options before parking their funds in any project.

Proximity to the metro service and infrastructure initiatives such as roads and flyovers are important factors to consider before zeroing in on an investment.

Also, remember that developers with a large inventory may be willing to negotiate and lower property prices. On the other hand, developers with big projects may not agree to bring down the rates of their projects.

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