Bengaluru always made headlines for his sector, its pleasant weather and its never ending traffic. But now Bengaluru has taken the spotlight for another reason – its sky -touched real estate prices. The homeowner has been out of reach for many people due to the scorching real estate market.
Why do Bangalore real estate prices are so high and what does it mean for an average buyer or a middle class buyer for a house in Bengaluru? Let's take a look at what is the increase in the prices of Bangalore's real estate.
Causes of increasing property costs in Bengaluru
Bangalore's real estate market has suddenly increased and there are many reasons for this growth. This growth can be linked to various factors such as urban expansion, increasing influx of technical professionals and increasing demand for quality housing. Areas such as Whitefield, Sarjapur Road and North Bengaluru have become hotspots for residential development, especially for 2BHK and 3BHK apartments.
Another reason is that many people do not know that NRIS (NRI) has a growing interest in Indian properties, which has led to noticeable impact on Bengaluru real estate prices. Many NRIs see India as a safe and emotional investment, especially post-pandemic. With a strong dollar and distance work options, they find the investment of property in India much more attractive than ever. Bengaluru tops the list with Mumbai, Hyderabad, Pune and other cities, with its metropolitan appeal, technology-powered economy and high fare yields.
Today, with the owner of a 3BHK in Bengaluru, INR 90 lakh will cost INR 2 crore on the basis of the area. It is a big leap compared to just five years ago.
NRI role in Bangalore's real estate market
Most NRIs want to invest in Indian properties. But in the last decade, the number of NRIs interested in investing in its homeland has suddenly increased. Favorable exchange rates, digital property management platform, and desire to stay connected to their roots are some reasons that NRIs are investing in Indian real estate.
But if you look at it differently, these investments are not only emotional for them, it is a smart and strategic step. Real estate remains a safe and tangible property in a long time. NRIs often choose a high -end apartment or villa in Bangalore as other homes or rental investment.
So, it brings us to a big picture – the role of NRI in Bangalore's Rising Real Estate Bazaar. This can be explained in 3 ways:
1. High demand – NRIs prefer premium apartments or villas and are ready to pay premium prices for them. Due to this, the purpose of developers is to build luxury housing, sometimes ignore affordable housing segments. While the NRI money increases the economy, it also plays a role in increasing the prices of real estate, making it difficult for local buyers to compete.
2. Investment with ready cash – NRIs often pay the entire amount unlike common people here, which depend on excessive home loans. This motivates vendors to increase the rate of property.
3. Just one investment – For NRIS, buying a house in India is just for an investment purpose. They either keep it as their holiday home or give it as a rented house. This increases the demand and puts more pressure on the available supply.
Due to these reasons, the prices of properties in Bengaluru have become very high. It has made a dream of having a home owner in Bengaluru a distant dream for the common man.
The role of NRI in India's real estate market has not been denied, it has played a role in price hike. So, does this mean that you should not invest in Bengaluru? not necessarily. Despite the rising prices of properties in India, especially in Bengaluru, it is still a promising city that remains a technical center with strong infrastructure development and job opportunities. Therefore, smart options have to invest wisely. Instead of escaping in high -priced areas, buyers should detect emerging areas, stay updated with housing market analysis in Bengaluru, and make informed decisions.
