The real estate market in Bangalore is witnessing a steady growth. The city has also seen a marked increase in second home buyers. There are some aspects to watch out for when going for the second home.
With other areas of investment proving to be not very profitable, the Bangalore residential realty market has witnessed a significant increase in second home buyers.
“About 80 per cent of soft launches today comprise of this category,” observes Kirti Mehta, Property Consultant and Soft & Prelaunch adviser, with a 20-year experience in this field. “Comprising mostly of businessmen, senior or C-Level personnel, the difference is that the buying today is with an eye to book profit on resale.”
The community of second home buyers today is getting younger. “With the buyers ranging from around 27 years to 40 years, most of them are for the first time entering this arena and learning by making mistakes,” states Mehta.
“There are several micro-markets in Bangalore which though targeted by the C-level IT segment, has not witnessed the high prices as witnessed in Whitefield or Koramangala,” states Virendra Kulaseelan of Amritha Realty Developers and Builders. “This has kept these areas affordable, with developers offering a plethora of apartments with super luxury amenities in almost 80 per cent of the complexes.”
Keeping these factors in mind, realtors advocate a list of ‘How-to’s and what to watch out for’ checklist for the young investors to help them in buying a good property in the current Bangalore market.
• Presence of core-business areas in the surrounding of around six km is important.
“Bangalore is not a Mumbai or a Chennai. The core-business areas here are present or are likely to develop only in certain localities. Keeping this in mind while buying a property will help you book higher profits in a set time frame of one to one and a half year.”
• If you are looking to book profits within the next two years, do not buy in localities based on future assumptions even if they are `proposed government plans’.
“We do not have a timeframe for completion of infrastructure projects, like Singapore has. These projects often take eight to nine years before they are completed provided there are no court cases or objections. Buying in on proposed plans means locking your money for a long time.
• Look for the ticket size and not the rate or price of the property alone.
“This is a golden rule. An emphasis on rate alone can actually bring down your profits while an uncompromising focus on ticket size ensures higher profit margins no matter what your investment is.”
• A good project and design will increase the escalation of the resale value.
“A good project is one where the developer has understood the target segment, matched the ticket size and provided quality amenities, irrespective of which category the offering is for. An above Rs 70 lakh project in Electronic City for instance will not have as high a resale value unless you are ready to wait for another six to seven years. Whereas, a below Rs 50 lakh property in the same locality can give you a higher profit in shorter time.”
• Buy from a developer who caters to a wide variety of segments in a single project and keeps to deadlines.
“This way the chances are that you will get high-quality amenities and lifestyle within a planed time, enabling you to move forward quickly and not wait for price escalations eternally.”