BANGALORE: Bangalore’s realty market has a steady a mix of projects targeted at different price points. There is plenty of choice for the end user/ buyer market and second home/ investor market. The consumption rates for the residential segment are better in comparison with the other metros. The city has a large talent pool and the number of people moving in to the city has been steadily increasing. Students, interns/ trainees, working class and expats have been the major driving force for the residential rentals.
The other factors including the per sq ft price are lower than the other competing metros. The super built-up area to carpet area ratio is at 25% (average) and improved rental yields have made Bangalore a favourable choice for investments.
What a home buyer is looking for?
Increasing number of buyers have opted for projects which have easy access to the social infrastructure i.e. school/college/hospital and workplace. Other factors such as the credibility of the developer, amenities like club house, play area for kids, parks and other recreational activities contribute to the project’s success.
With the city growing at a rapid pace, the commuting time from home to workplace and back has only worsened. Add to that – bad roads, inadequate planning, too many infrastructural projects running in parallel have only made things difficult for the working class.
What is the reason for the high pricing of projects?
The buyers today have so much to choose, from concierge services to serviced residences and what not. The developers need to differentiate their product from the rest and hence, the list of add-ons goes up.
Partly the land owners are also responsible for the higher prices. The asking terms / prices by land owners today have only sky rocketed. In the urge to capitalize on their land, they burden the developer with unreal terms, which the developer passes on to the buyer.
Precautions to take while investing in a property project
Check for the credibility of the real estate developer and also of the project for the necessary approvals and sanctions. While there are developers in the market who are committed to delivering, to build customer relationships and to add value to their brand (basically a long term strategy), there are many who are out there to make a quick return on investment.
Buildings that violate town planning norms and are not as per sanctions are a menace to the society and cause blockage of drains, lead to insufficient water for the other residents in the area.
It is, therefore, advisable to always check on these aspects before buying.