A Look At Bangalore’s Real Estate Market

Bangalore has been one of the fastest growing cities in India since the past few decades in terms of real estate. It has highly been increasing in the number of units constructed every year. There have been around 2000 units built from 2014 to 2015. The sales have also increased by 15% as compared to last year. All this has been due to the enormous growth in the IT sector. Bangalore being the IT hub of India has great infrastructure, excellent education and multi-cultured population.

A Look At Bangalore’s Real Estate Market

South Bangalore

The demand for residential properties in south Bangalore increased after Electronic City was established as an IT hub. Top areas in south Bangalore include Whitefield, Kanakapura, Hosur, Bannerghatta, Sarjapur and JP Nagar, which have seen a rise in construction values ranging between 3.4 to 4.3%. The prices here now range between Rs. 5000 to 8100 per square feet.

North Bangalore

The newly constructed Bangalore International Airport, the Elevated Expressway, Metro Rail and proximity to IT parks have resulted in great gains for construction in areas like Jakkur, Navagar, Thanisandra, Hebbal and Bellary Road. The ITIR, Aerospace SEZ and Devanahalli Business PArk are also the reasons behind the residential development in North Bangalore. The prices of properties here range between Rs. 5500 to 7500 per square feet. With more of luxury properties launched here, the price ranges between Rs. 70 lakhs to 1.5 crores. The demand for such high-end residential properties remains high in these areas.

East Bangalore

East Bangalore also sees a high demand for luxury projects because of the IT sectors, good social infrastructure and developing physical infrastructure.

West Bangalore

West Bangalore fails in terms of social infrastructure and is dominated by industrial developments. This is the reason why it fails to develop in the residential sector and hence, has been unable to attract real estate developers. Future developments of the Metro in this area might seem to boost the development of residential properties here but, not for now atleast.

Let us have a look at the different kinds of properties you can see in different areas of Bangalore.

Luxurious properties

Bangalore's population is estimated to have around 10,000 millionaires. These people are sophisticated and well-cultured. Thus, the tastes they have for real estate are also sophisticated. Due to this high-end population, there has been a rise in demand for high-end residential properties too. These millionaires mainly reside in Whitefield, Outer Ring Road, Central Business District and Secondary Business District. Thus, these areas have been increasing in supplying luxurious properties. These properties mainly include villas that are big in size and have excellent quality amenities.

Mid-Income properties

As the name suggests, these properties are in demand by those working in the IT industries. Properties in this segment have good infrastructure and are in close proximity to workplaces of the people residing here. Access to hospitals, medical stores, market and educational institutes is also provided in these areas so that it becomes convenient for mid-income residents to live here. Areas providing such mid-income homes include Whitefield, Outer Ring Road and Electronic City.

Affordable properties

These properties are in demand by those individuals who are extremely price sensitive. These kind of properties are seen where large lands can be acquired at lower costs. Hence, you will be able to find affordable housing in the suburbs like Mysore Road, Hosur Road and Kanakappura Road. These properties are reduced in size and have only the basic amenities installed. The Metro Rail and Peripheral Ring Road have increased the demand of such properties in the suburbs.

You can check the amazing 2BHK and 3BHK homes in MJR Platina, located at Hosur Road. Built by the prestigious MJR Builders, with amenities including club house, swimming pool, gymnasium and other outdoor amenities, you can ask for nothing more at great affordable rates! MJR Builders is coming up with more projects in Whitefield and Electronic City too with luxurious amenitites and great infrastructure.

Are You Aware Of All Costs While Buying A Property?

Buying a house is considered as one of the most significant investment by Indians. It is one of the biggest decisions to invest all that they have in buying a real estate property. Thus, it becomes very difficult for middle class buyers to handle any new surprising hidden costs on purchasing a property. MJR Builders are one of the renowned and trusted builders who provide top quality residential and commercial spaces in different areas of Bangalore. They focus on assisting clients in property buying, selling and renting decisions. For any kind of residential plans in the Whitefield, Hosur and Electronics City Phase -1 areas of Bangalore, you can contact MJR Builders.

You might think that if you are capable of paying for the cost of the property, you have made it. But, this is not so. There are many hidden costs that if added, might come up to 25-30% of the cost of the property. So, you must be aware of all these extra costs and be well-prepared with an extra amount of money other than the purchasing cost or else all these expenses might use up all of your savings.

Registration costs

Registration cost is a charge levied by the government on property transactions to help you register and enroll for a property you have decided to buy. The amount of the registration cost depends on the total amount of the property. On an average, it amounts up to 2 to 3 % of the cost of the property.

Stamp duty

Stamp duty is a charge that is levied by the government on all documents and transactions made during the purchase of a property. It varies from state to state but, is about 5 to 7 % of the total cost of the property. The assessable value of a property includes components like saleable area value, car park value, floor rate value and value of amenities.

Service tax and VAT

Service tax and VAT are levied by the government only on under construction properties. Service tax is 12.36% of one-fourth the value of under construction property and VAT is charged on the construction value of the project. Together, these two taxes may cost you 8-10 % of the total property value.

Interiors

It is obvious that the choice of the builder won’t match yours. You are bound to make some or the other changes in the interiors once you acquire the property. This is a point that may not click your mind before purchasing a property. It also seems like it is not a considerable point and won’t cost much. But, it should not be ignored because even though not as expensive and that it entirely depends on the type and nature of changes to be made but, on an average it would require around 1 to1.5% of the cost of your property.

Parking

Earlier, there were no charges for parking spaces. But, since around the past ten years, builders are charging an additional upfront payment for parking space allotment in large residential complexes. The amount charged depends on the type of property, locality and type of parking space provided but, it generally adds up to around 2 to 5 lakhs.

Delay in acquisition

It is very normal for a project completion to be delayed by a few months by builders in India. The delay in acquisition of the property might lead to various expenses like extra interest paid to home loan lenders. Thus, even if you are sure you will get the property in hand on time, you must still have some extra funds in calculation just in case you face a delay during the process.

Other charges include processing fees by banks for home loans, costs of lawyer and notary and costs of insurance and its premiums.

SUMMARY

Buying a real estate property not only involves the property cost but, it also involves other hidden costs like registration costs, stamp duty, service tax, VAT and costs of interiors, parking, lawyers, notaries and insurance. All these additional costs add up to around 25-30% of the cost of the property.

Planning to buy an apartment or Independent house or Villa in Bangalore?

Everyone in India, at least in the cities, dream of owning a house. Be it flat or apartment or plot the process is long and tedious.  Often, the only time you feel happy about building/purchasing a house is when u r dreaming!! From that point, till you buy one or construct one or get cheated in the process, the effort is gigantic and there is a sinking feeling that government has done very little to ensure credibility of real estate business.

Today, Bangalore’s real estate market has taken a 360° turn, and the city that was lacking the different high-rise culture, now boasts of apartments towering 40 storey’s high. Cost will be always taken as major factor to choose the scope of our lower & upper limit. We need to think and plan about it advance. Else it will deal to problem with your daily expense which much needed to live easy going life. One of the fundamental reasons that make high-rise lifestyle reach news pinnacles of growth in Bangalore is people experiencing less air and noise pollution, better view furthermore privacy by living vertically upwards.

MJR Builders are renowned builders and developers in Bangalore who always strive for better quality for customers. Our technical expertise and quality of work, give us the edge to constantly innovate and deliver the best residential properties. For more information on on-going projects and Upcoming projects  CLICK HERE.