Real Estate Market in Bangalore

 

The real estate market in Bangalore has long been recognized as an intriguing investment opportunity. This city, which is frequently called the “Silicon Valley of India,” has long offered wonderful places for people to reside, with a wealth of lakes and open spaces mixed in with a cosmopolitan atmosphere. It goes without saying that the city never failed to charm its residents.

The foundation for the city’s real estate boom has been laid by the quick development of startups and IT centers that require staff, as well as by expanding corporate investors eager to engage in real estate. The most popular real estate market in the nation is in Bangalore, where any investor can find a variety of investment opportunities. 

The magnificent farmland that stretched out before Kempe Gowda made him picture a well-planned town with plenty of amenities for its citizens. He most certainly didn’t think it 

was a town where people came from all over the country to seek asylum, find work, or just buy a house and start a family. Let us look at some of the factors driving the real estate market in Bangalore:

Bangalore is a towering city

However, Bangalore largely remained solid and bravely weathered the storm. Bangalore retained a moderate front, just like its climate. What is Bangalore doing that other cities are not that is successful in? What is the enchantment that it uses to transform guests into residents?

Centered on end consumers 

The end-users of Bangalore’s properties have traditionally been families looking for well-designed, furnished, and conveniently placed residences. Apartments in Bangalore are constructed to meet a family’s needs for amenities and social infrastructure.

Even though end users think of home purchases as investments, their priorities differ from those of a long-term real estate investor who is just interested in ROI. As a result, the real estate market in Bangalore has a solid basis built on value and current market circumstances, which has helped prevent speculation-based inflation and maintain prices.

Office leasing momentum is increasing 

Bengaluru has seen a significant increase in the leasing of office space. The greatest quarterly lease volume ever recorded was 6.2 million square feet of gross leasing in Q2 2022, which represents a 2.4x quarter-to-quarter gain. New leases and increased demand for office space both contributed to the overall increase in leasing activity. With a significant proportion of 34% in the first quarter, the IT-BPM industry drove leasing momentum, followed by the Engineering and Manufacturing sector at 30%. With deals rising from 6% in the first quarter to 15% in the second, the market is noticing an improvement in the share of flexible workspace.

Strong residential unit sales

Bangalore has seen the emergence of numerous new IT industries, which has led to a rise in demand for residential properties. Residential unit sales for many builders and developers of the real estate market in Bangalore increased significantly year over year in the first three months alone, up 34%. Among others, Brigade Enterprises, Prestige Estates, Puravankara, and Shriram Properties set new records for sales growth in FY 22. The second half of 2022 will likely see an increase in sales for these companies.

Protection for mortgages 

The real estate market in Bangalore has benefited greatly from the assault of IT and the growth of startups. The real estate markets in other cities took a serious hit from demonetization because historically this is a cash-intensive industry. But purchasers of flats in Bangalore who work in the IT or startup industries choose to prefer home loans because there is typically less upfront cash required. This is offered in the real estate market in Bangalore’s excellent protection.

Explosion of young adults

Bangalore’s flourishing startup ecosystem and established IT industry draw millennials from all over India to the city to settle down. With significant infrastructure improvements being planned, including bigger expressways, new business parks, and improved transit networks, millennials are finding Bangalore to be an ideal area to settle down and have contributed to an increase in sales of cheap homes.

According to CREDAI data, millennials favor Apartments in Bangalore in the Rs 40 to Rs 70 lakh price range that is well-connected, feature amenities that are ideal for young and growing families and are part of projects finished by reputable builders that have a high resale value.

Expats and NRIs 

Bangalore has consistently had one of the most affordable real estate markets among major cities. Also, it offers a wide variety of options in the residential and commercial sectors, ranging from luxurious to affordable. There has always been a constant flow of foreigners who work for IT firms and have to move to flats in Bangalore.

Additionally, the city has drawn NRIs who want to return to India after time spent abroad. Bangalore provides a setting that enables people to establish themselves without having to give up the amenities and conveniences to which they have become accustomed. The persistent depreciation of the rupee against the dollar has also increased NRIs’ interest in real estate investment.

Additional Factors Increasing the Real Estate Market in Bangalore 

In the near future, the real estate market in Bangalore will improve. The property market will experience high demand due to the city’s appeal to potential homebuyers and investors. The real estate market in Bangalore is influenced by the following variables:

Relief from stamp duty  

For buyers of affordable section homes in Bangalore, the reduction in property stamp duty from 5% to 2% on properties priced under $20,000 and from 5% to 3% on properties priced between $20,000 and $35,000. Investors and home buyers would undoubtedly be encouraged by the Karnataka government’s move.

Buying a home online 

The real estate market in Bangalore has excellent potential for market situation adaptation. The city has proactively changed its focus to online strategies including virtual reality (VR), augmented reality (AR), real estate photography, and 3D modeling for site visits and virtual tours. These strategies will facilitate online flats purchases and improve the client experience.

Robust structure and connectivity 

One of the most developed and modern cities in the nation is Bangalore. Bangalore offers a substantial edge for real estate investment to its reliable infrastructure and convenient connections. Developers and buyers have many opportunities in the real estate market in Bangalore. There will be sufficient demand for flats in Bangalore due to the pandemic’s strong housing supply, growth in the city’s entrepreneurship, IT industries, and residential launches, and increased infrastructure development.

Available Resources

When it comes to the real estate market in Bangalore, supply and price are inversely correlated. In other words, prices rise when properties are scarce and fall when there are lots of available properties.

Interest Rate 

When looking to invest in the real estate market in Bangalore, purchasers naturally desire lower interest rates on home loans or any other type of property financing.

Demand for Real Estate 

Owners of start-ups may be interested in investing in real estate in Bangalore if start-up activity there is at its highest. But the boom won’t last forever.

Even NRIs are interested in investing in India due to the country’s booming real estate market in Bangalore. This is so because Bangalore has advantages similar to those of metropolises while having a significantly more affordable cost of living.

Easy Purchase 

Nobody wants to invest in real estate and has to go through a drawn-out procedure. The simplicity of the buying process, which includes registration and authority approvals (for example, if you invest in Mysore, the authority would be RERA Karnataka).

In Bangalore, the buyer is protected and can have faith in the property they are buying due to RERA authorities (each state in India has its own RERA authority). 

Possibility of Employment  

 The economy of a city also has a significant impact on employment opportunities. More people will be able to afford to invest in the real estate market in Bangalore as a result of increased employment possibilities.

Future potential of Bangalore Real Estate 

The sale of residential properties is anticipated to increase in Bengaluru. House sales will be boosted by the construction of more offices, as well as by an increase in staff employment and compensation. The need for housing will rise as more and more workers relocate to the city. The cost of real estate in the city will increase as a result of rising demand and raw material prices. By the end of 2022, the real estate market in Bangalore should be better overall because of advancements in infrastructure, connectivity, digital house hunting, and residential sales.

Nutshell  

The importance of real estate and housing investments has been highlighted by the most recent COVID-19 outbreak. Even if several opportunities can be exploited, it’s critical to make investments that increase in value over time. Desai Group has created a list of the most recent trends in the real estate market in Bangalore as a result. As was already mentioned, purchasing a real estate market in Bangalore with growth potential can increase return on investment and give you and your future a dependable, secure asset.

Smaller homes and improved infrastructure appear to be the way to go in order to maintain the real estate market in Bangalore thriving now that millennials are driving the market exactly how Kempe Gowda had intended.

At Desai Group, our experts use cutting-edge technology and sophisticated marketing knowledge to produce high-quality services for real estate for buying flats in Bangalore and help you sell your property quickly.