Investing in property in Bangalore

Bangalore, Indias Silicon Valley, gained its reputation as one of the most preferred investment destination, a decade back when IT boom hit the city. The gardens, the temperature, the Cosmo feel, the multi-cuisine and diverse culture are just some of the reasons why people love to settle in the city as well. Plagued by some concerns, the city makes for a perfect destination for the investor and the settler.

Unfortunately and shockingly, theres little out there for a poor, single income, regular tax paying (saddled with numerous loans and outstanding credit card bills) citizen The IT capital property market seems to be attracting buyers in these times of a slowdown. Why is the question that you would ask?

Research and analysis throws up that in areas like Sarjapur the property prices have seen a down movement of almost 10%-20%. In posh localities property like Jaya Nagar and JP Nagar, prices have come down by 15%.

These price slowdown may seem unrealistic. While Mumbai and Delhi have not witnessed any down turn in prices.

However keeping history in mind the mammoth jump in prices during the sudden IT boom in the city, most of the properties acquire a fake price or an inflated price. That led to brokers and Builders making an extra buck. However as the market has stabilized, and the demand and supply mismatch in price, a lot of apartments lie unoccupied. The inflationary prices have led to builders not getting enough buyers.

You may compare Mangalore, still in its nascent stages, to how Bangalore was a couple of years ago. Taking a cue from increasing industrialization and incoming investments, realtors in Mangalore have hiked prices. As a result, a house which would be available at Rs. 2000/- on rent was available for no less than Rs. 3500/-. However the situation will not last fro long and prices will crash down soon. Thus, is reflected in the situation in Bangalore real estate today. The IT industry boom in the city has led to a huge rise in realty prices. The high disposable income of IT personnels allows them to give a premium on property of their choice. Therefore, the city residents also had to cough up an extra to match up with the hike in prices.

The situation has arisen where flats are lying vacant ad apartments are builders are getting frustrated. Therefore, we see a significant fall in the prices, as builders try to woo the buyers in an age old way.

For example Sarjapur was in oblivion until the IT boom hit the city. The IT boom revolutionized the landscape of this area. However as the prices rose beyond reason, and beyond affordability, demand at those prices weaned. Since the prices hit the roof, today, there lie a number of flats vacant in the area. Although premium localities with high quality constructions, the buyer is still averse to investing in properties here, unless prices stabilize.

Jayanagar and J P Nagar are other well planned areas where high property prices forced prospective buyers to opt for less expensive areas, like R T Nagar, Sultanpalya and Kamanhalli. This led to a drastic fall in demand for land or a house in Jayanagar and J P Nagar, almost by 40%. In turn realtors were compelled to reduce prices.

Well, most of the blame is being pushed to secondary selling. To realtors, who take the advantage of rampant demand? Well the market cycle functions like this & and all the intelligent investors take advantage of these times.

Job Hunting in Bangalore is a much easier task as compared to hunting property in Bangalore. Use time judiciously when looking for a house, else you end in no mans land. Once you have zeroed into your preferred location and estimated your budget. No point looking all over the city for a flat. Firstly, do your due diligence on real estate portals, secondly, contact the marketing team of reputed property developers and brief them about your requirements. They will come up with some good choices.

Make sure you do not look for a property in areas where the hype is short lived. Ascertain areas which will continue to be good residential areas and the sheen will not fade away soon`. Look for property in developing areas that will soon come under the City Municipal Authority. Select a property that has good resale value and is close to markets/ shops, medical, education and religious facilities and to your places of work.

If you are an investor, check if the area is preferred by foreigner or executives of multinationals. Such areas generally command higher deposits and rents.

If you do your diligence and look meticulously filter all details in house searching you're on the way to your dream property. Take time. Talk to people who have recently made a purchase. It's well worth it.

To sum up, there cannot be a better time to invest in Bangalore.

Aakriti Bhargav writes on behalf of 99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estate industry. It is a forum where buyers, sellers and brokers can exchange information, quickly, effectively and inexpensively. At 99 acres, you can advertise a property, search for a property, browse through Bangalore Real Estate and Properties.