Affordable homes in Bengaluru and where can you find them?

Bengaluru is the IT capital of India. People here are well paid. There is enough job generation in the city which makes the real estate properties move faster. People from all parts of India and abroad as well migrate here for jobs, education and settlement. This in turn is translated to the demand for housing in the city. But again the picture is not that bright as has been projected or thought of. There are various income categories in Bengaluru’s workforce. Some may be earning a six figure salary while most of the people earn a meagre salary which is spent in making two ends meet.

Let’s sneak into the real picture. Statistics says that there are about 55, 000 jobs which are currently available in Bengaluru. But if one looks at the salary ranges of these jobs then one will find out that a maximum number of these jobs are offered in the range of Rs. 4 lakhs and within. This indicates that the monthly income of the job holder is within Rs. 33, 000 which means they can afford houses and flats within Rs. 35 lakhs.

With this picture of affordability of the city we can understand the purchasing power of the most of the population of the city. But where can we find homes for them is a pertinent question. The market watchers opine that real estate properties in places like Kanakapura Road, Mysore Road, Bannerghatta Road and few areas near NICE Road corridor offer prices within the income range of low and middle income group.

Various indexes indicate that affordable ranges mean the properties within the price range of Rs. 40 lakhs. The supply exceeds the demand of the properties and the indexes point out that the availability or supply of such properties is at 35 percent whereas the demand staggers at 22 percent. The market conditions denote that one can get a 2 or 3 BHK in that budget.

The trend watchers however remark that the North and South of Bengaluru is where the land bank lies. Thus the most of the real estate development and apartment complexes are built here.

There are areas where homes can be bought at even cheaper prices too. Those areas are Devanahalli, Mysore Road, Bagaluru, ITPL and Hoskote where maximum houses are priced in the price range of within Rs. 20 lakhs. On a contrast note, in the areas like Kanakapura Road, K R Puram, Hongasandra and Hosa Road one can find properties in the range of Rs. 20 lakhs to Rs. 40 lakhs. The realtors feel that the infrastructure of these areas has not yet been developed to the full due to which they are priced in the lower ranges.

In areas like Kanakapura Road, Mysore Road, ITPL and KR Puram there has been considerable amount of sprawling commercial activities with large absorption of IT and office spaces nearby which has accentuated the demand of residential spaces. There has been simultaneous development of social infrastructure like schools, colleges, malls, supermarkets and hospitals too.

Devanahalli is a place which is earmarked by the location of the International Airport and the recent launch of the Information Technology Investment Region (ITIR) has made the place a sought after one by the developers. The market watchers opine that although the developers are flocking to the area anticipating the prospects of the place the area is yet to develop in terms of the social infrastructure. That is one of the drawbacks of the place compared to the other high priced areas. But this is to note that with the offices and IT companies starting to operate the place will have a new look altogether which will gradually surge the prices up. So the shrewd speculator forecasts that this is probably the best time to invest in such places.

Dreamz Infra is one of the builders who can provide affordable flats in Bengaluru. They have apartments in JP Nagar, Silk Board, Electronic City, Sarjapura Road, HSR Layout, Marathahalli, Whitefield, Hosa Road, Hebbal, Horamavu, Kanakapura Road, Vidyaranyapura etc.

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Whitefield, the investment hotspot of Bengaluru

Whitefield is a locality that had gained prominence long back with the presence of many multinationals and IT parks. ITPL is one of the large IT parks present in the area. Whitefield is perhaps one of the places with the highest concentration of IT, ITeS and multinationals perennially creating the demand for jobs. People from all parts of India come for treatment in Sai Baba hospital in Whitefield and the area has grown in respect of social infrastructure with simultaneous increase in the residential population in the last one and a half decade. There are a few educational institutions too that are being targeted by students all over India and even abroad. All these factors are responsible for the surge in demand of real estate properties and even rent in the area. A stroll in the area in one of the week days will make one feel that the area is in demand and one would gain on investing in Whitefield real estate.

Apart from the above reasons there are a considerable number of people who are being transferred in the offices of the adjoining areas from different parts of India and the world too. The corporates have also started investing in apartments, row houses and villas for their officials. The immigrants from other parts of India also value the place as a good investment option as many are having a good income and find it pointless in paying rent and instead pay the EMIs for their own apartments. Thus developers of all segments be it for Low Income Group (LIG), Middle Income Group (MIG), or the High Income Group (HIG) are seen to develop different buildings and apartments for different group of customers segments.

The data from various sources suggest that Whitefield in East Bengaluru offers maximum number of residential units for sale and has been ranked in the top ten localities of Bengaluru in the preference list.

Let’s explore the options available in the area.

If you browse the aggregator sites you will find many renowned developers offering apartments in Whitefield with options from one to four BHK apartments with scheduled possession by the year 2015 or at the latest by 2017.

Another striking feature that one would note is that the area offers ready-to-move-in apartments too and in considerable quantity which are priced in the range of Rs. 35 to Rs. 55 lakhs. The area is well distributed will all kinds of amenities and facilities and many IT multinationals like HCL, IBM, Tesco, TCS, GE , Societe Generale, Accenture and Sap labs are present in the area. The residents opine that there are plenty of choices in terms of recreation hangouts or even the social infrastructure is quite adequate with many malls, supermarkets, banks, schools, colleges and theatres.

Communication Facility

As far as connectivity with Bengaluru is concerned, Whitefield is accessible through two of the major four lane roads namely HAL, Old Airport Road via Marathahalli and secondly through Mahadevpura. Both these routes intersect with State Highways of Karnataka (SH 35) and further is connected to Anekal in the South and Siddlaghatta in the North. The International Airport is about 45 to 50 km away from Whitefield and is connected through the State Highways, SH 104 and SH 207.  Apart from this the Whitefield railway station is another advantage of the area which gives easy access to the city.

So with all these facilities and the higher echelons of the customer segment of Bengaluru real estate market increasingly demanding the area, lot of luxury apartments are being constructed. The logic of the customers of the uber-luxury apartments are that after a tiring day of 10 to 12 hours of work one would ask for a place where there is social life which is not far away. Another strong point is that this class always wants to remain aloof from the crowd but at the same time connectivity is one of the demanding criteria. In all these respects the area is highly suitable which makes the place both resident and investment friendly. Apart from the uber-luxury apartment seekers the office space absorption and the immigration of retail and commercial spaces are also on the rise. With this given situation the intelligent investors certainly consider Whitefield as a hot spot.

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Budget 2015 invokes mixed reactions from realtors

After the presentation of the budget 2015 by the finance minister there are mixed reactions from the real estate circle. The real estate sector had high expectations of measures that would pump in some liquidity into the industry. But many critics opined that the budget is fairly positive with many development measures but as far as the real estate industry was concerned the residential sector was not given much of an importance that constitutes the major chunk of the revenue for the industry. The budget according to realtors completely ignored the residential sector of real estate and there is a full lack of any kind of push for the housing sector as the realtors expected a heavy cut on the rates of the interest rates among other factors which would have boosted the home loan procurement rate among the end users pumping in some liquidity to the industry.

The budget however announced the government’s intention of building six crore houses or residential units towards the scheme of “Housing for all by 2022” but failed to detail on it. Neither did the budget detail on the Sardar Vallabhbhai Patel Urban Housing Mission in terms of allocating the funds. The timelines, project locations, the instruments for funding and other factors were also missing.

Few critics however appreciated the measures to reduce black money for which the step was taken by introducing the “Benami Transaction Bill”. The budget proposed to incentivize the use of wired money rather than hard cash transactions which few feel would significantly impact real estate. The budget also states that punitive measures would be taken against concealment of assets including Benami properties.

In talking about the liquidity few others argued that although this would impact on the real estate market on the whole but it might have a negative impact on the investor segment of the country. They go ahead to say that notwithstanding the positive intent of the government the Benami Bill can drive away the investors and exit the market.

Another criticism that came from the realtors was that the budget does not mention about the plans and programmes of constructing 100 smart cities. The budget document according to many lacks to boost the key factors and the sector of the real estate industry. On the first place it does not talk about the promulgation of the REITs and the InvITs. But Mr. Jaitly proposed to rationalize the regime of  capital gains for the sponsors exiting at the time of listing of units of REIT and InvITs and also announced the creation of six crore homes to meet the centre’s mission of “Housing for all by 2022”.

Others opine that although many macro factors were being looked into in the budget for a prosperous economic regime but the real estate sector was highly expecting for some compensatory measures for the lull in the last there years and as the sector was virtually gasping for more liquidity. The realtors were unhappy as the budget has nothing in it to cheer up.

Moreover given the burden of prevailing indirect taxes, stamp duty clearances, the high cost of borrowing for both the developer and the buyer, the real estate sector was hoping for some serious incentives among other measures to give a boost to the sector which the budget was devoid of. But many veterans feel that the government will make some announcements in this regard in the due course of the year.

The measure for the REIT regime is welcomed by many as the indications that tax pass through on REITs will be implemented and the experts feel that this has the potential to stimulate the REIT market in India which can release lower cost capital, increase the flow of liquidity and stimulate the next phase of enhancement of the urban infrastructure of India.

Considering all these factors many opine that the budget is positive and balanced as the proposal to rationalize the capital gains tax regime is a positive step and the simultaneous reduction in the corporate taxes will ensure higher investment in the realty sector.

Dreamz Infra India one of the best builders providing affordable apartments for sale in Bangalore. Construction work is in full swing of Dreamz 7 projects which are located at Electronic City, Marathahalli, Sarjapura Road, Silk Board, JP Nagar.

The Secrets of Real Estate Investments

Real Estate is a place to make money if one can invest a bit and one is well informed about the market. Nevertheless, like all businesses you also need to have a business plan or a strategy to win over and become a successful investor. Irrespective of whatever strategy one may deploy there are several ways to make money in real estate which we elaborate as under.

Renovate and Sell or Rent it:

This is one of the successful tips of the real estate industry to buy properties in lesser prices which requires substantial repairs. Properties which are in need of major repairs are sold at much lesser price than the market rate. Such properties can be bought and sold when the market takes an upward turn. There is profit if one rents such properties also as the return on investment will be high owing to less investment.

Real Estate Agency: Opening a real estate agency is a much better option instead of putting one’s money at risk. The real estate agents do not rent, sell or buy property but instead earn huge commissions on sale just by helping people to buy and sell property.

Wholesale Buying: This is one of the secret ways of making money in real estate sector. By identifying an attractive deal one has to enter into an agreement and then advertise and sell it at a higher price than what the agreement is for. This can be a treated as a sort of unethical practice, especially if the buyer comes to know the truth.

Leasing Property: Leasing a property is a wise way of keeping the option to buy it open below the market price at the right moment. That is the reason leasing option is practiced by many especially by people who doesn't qualify for a mortgage.

Flipping Houses: This is a good way of making money if one has a sound knowledge of the prevailing rates of homes, repair cost and up-gradation cost. The strategy is to find houses and sell it to different investors.  One has to keep the market cycles in mind and have to be good in negotiation skills.

Buying Land: Some real estate investors just buys land and sell it after few years when the market conditions are a bit bullish. One can expect a windfall profit if one buys few acres of land and sells it in sizeable plots.

Buying under Construction Properties: One can buy an under construction property especially at the early stages by paying a deposit which can range from 5 percent to 30 percent. If one waits for the period of construction, he or she can sell the ready to move in apartment at a higher price.

Consultation: Last but not the least is consultation in real estate after few years of experience in the sector. There have been instances of many people who have become rich by consulting in the real estate sector.

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