Pros and Cons of Buying Flats in Bangalore
Bangalore's real estate market offers a high property appreciation rate, with good rental yields, but the city also faces challenges such as high property prices and traffic.
Are you wishing to buy a flat in Bangalore but are not sure if it is the correct choice? Let us explore the pros and cons of buying an apartment in Bangalore by understanding market trends. Then, you can make an informed choice that will align with your needs.
Possessing a flat in Bangalore will have many benefits, including good real estate appreciation over time and high rental yields. The city has diverse investment options catering to many budgets, and buying a flat will have the following advantages,
Bangalore real estate market promises long term growth which makes it best for property investors. As property rates are increasing at a fast rate, it results in a high return rate.
Birla Estates has a significant presence in Bangalore, with its luxury gated communities, such as Birla Evara, which boosts the appeal of East Bangalore. Buying a flat in Bangalore promises long term returns in premium areas.
The appreciation rates of key areas are shown in the table below:
| Key Areas | Average Rate per sq ft | Quarterly Change (%) |
|---|---|---|
| Sarjapur Road | Rs. 9500 | 9% |
| Thanisandra Main Road | Rs. 8500 | 9% |
| Electronic City | Rs. 6500 | 9% |
| Whitefield | Rs. 8900 | 10% |
| Mysore Road | Rs. 7000 | 6% |
Due to the booming IT sector, a lot of IT people move to Bangalore every year, and the rental market continues to thrive. With strong demand for mid segment flats, investing in a flat in Bangalore offers high rental yield. The areas that are near IT hubs like Electronic City, Sarjapur Road, and Whitefield provide flats with high rental yield.
The rental rates of key areas are shown in the table below:
| Key Areas | Average Monthly Rent |
|---|---|
| Electronic City | Rs.15,000 to Rs.35,000 |
| Devanahalli | Rs.13,000 to Rs.28,000 |
| Whitefield | Rs.20,000 to Rs.45,000 |
| Sarjapur Road | Rs.20,000 to Rs.40,000 |
| Thanisandra Main Road | Rs.20,000 to Rs.35,000 |
| Mysore Road | Rs.15,000 to Rs.30,000 |
The city’s emerging social infrastructure is a benefit for real estate investment. The upcoming projects, such as Metro expansion, flyovers, and roads, will improve the transport network and make buying a flat in Bangalore appealing.
The Metro network is expanding by 129 km, and it will connect satellite towns, which will meet the growing demand for public transport. Double deck flyovers will reduce congestion and improve travel experiences. The upcoming projects, such as Peripheral Ring Road, which is a 73-km road, will improve the transport network of the area. The ongoing infrastructure will contribute to the city’s long-term property growth.
The city offers a lot of IT parks, including Manyata Tech Park, Prestige Tech Park, TCS, CTS, Wipro, and many more. The IT hubs create a lot of job offers in Bangalore, which creates a steady demand for housing, especially in areas close to the IT zones. Buying a flat in Bangalore gives the convenience of living near work areas, and it reduces travel times and helps in a good work-life balance.
The city offers a big range of housing choices, which makes it a feasible choice for buyers across all price points. The city offers luxury flats, mid-range flats, and affordable flats in Bangalore that cater to every need. Luxury properties are present in abundant in East Bangalore, with 55% of the city’s inventory.
Bangalore has the best malls for shopping, including UB City Mall, Park Square Mall, Central Mall, Brookfield Mall, Orion Mall and much more. There are the best schools, including National Public School, Royale Concorde School, Harvest School, Orchids School, and many more, that have access to quality education. There are a lot of best hospitals incl, including Ude Manipal Hospital, Springe Leaf Hospital, Sathya Sai Hospital, and Brookfield Hospital, that offer quality health care.
Buying a flat in Bangalore is the best choice as it has a lot of gated communities with luxury amenities. Well planned projects such as Birla Evara offer resort-style amenities that provide recreation within the gated community. At Birla Evara, residents enjoy special amenities such as the party halls, spa, café, food court, board games room, gym, pool, and much more that caters to entertainment.
While buying a property in Bangalore offers numerous benefits, there are some cons also that owners should consider, which are as follows,
Water scarcity is a concern in certain areas, where flats may rely on water tankers for extra supply. However, Birla Evara’s flats in Bangalore are equipped with advanced water treatment plants and RO features to ensure a consistent water supply. Treated water is used for gardens to reduce the strain on freshwater.
Air pollution is a growing problem in some of Bangalore’s peak areas. The increase in vehicles results in polluted air, which results in many health issues for the people.
Buying a flat in Bangalore has the challenge of higher property prices. The rapid growth of real estate in the city has made properties more expensive than other cities. The demand for properties is high in premium areas near big IT hubs.
Traffic congestion is very high in peak areas near big IT hubs. In peak hours traffic is very high which is a problem for people living in the areas. The ongoing Metro Phase 2 network and new roads will ease the traffic burden on the city to some extent.
When buying a flat in Bangalore, it is important to look after the pros and cons of the area. The city offers a dynamic market and choose an area with reasonable price property and lower traffic.
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