People looking for properties in Bangalore are often confused about whether to buy their own house or look for rental accommodation. Increasing real estate prices in prime and sought after locations in Bangalore seem to be the primary reason why the middle income group finds it difficult to make that crucial decision.
With a lot of people migrating to Bangalore for work, the demand for rental accommodation has increased in the last five to six years. Statistics show that there has been a 15% hike in the prices of residential properties for 2013 Q1, with rental prices also increasing by 8% as compared to 2012 Q1.
This is due to an increased demand for rental accommodation and an overall hike in property rates. Though for a lay man it makes more sense to look for rental accommodation rather than buying a house that is priced highly, the dips in home loan rates and discounts/incentives offered by developers and builders have created buoyancy and enthusiasm among prospective buyers.
Rental Trends in Bangalore
People generally opt for rental accommodation, stating financial constraints. Convenience is another reason why many people opt to stay in rent. But despite all this, rental prices across Bangalore have hiked this year. Major parts of Bangalore East and Bangalore South have shown a spike in rental rates. Whitefield, Indira Nagar, JP Nagar, Old Airport Road, Bellandur, BTM Layout and Outer Ring Road in particular are a few places that have shown a considerable hike (in the range of 7% to 23%). So if you are planning to opt for rental accommodation in these areas, then be prepared to shell out more. RT Nagar, Bannerghatta Road and Kanakpura Road have also shown appreciation, but to a lesser extent.
Buying your House in BangaloreAs a buyer, if you have the money and are looking to buy a house in Bangalore then head North, West or South. Presently the locations around Electronic City, Sarjapur, Kanakpura Road and Begur Road in the South of Bangalore have some really good projects coming up.
People looking to buy apartments in the price bracket of Rs. 45 lakhs to Rs. 60 lakhs, can definitely invest here.
South Bangalore: Koramangala, Jayanagar and Banashankari have shown tremendous growth in the recent one year. Good infrastructure and great connectivity makes these South Bangalore locations quite lucrative for buyers. Though the prices for buying flats and residential plots in these areas are high, they are good investments.
North Bangalore: Buyers can also look to buy their own flat or plot in the North of Bangalore. Places like Hebbal, Yeshwantpur, Hennur Road and Tumkur have witnessed tremendous infrastructure development. Good connectivity to the Devanhalli International Airport, new infrastructural projects including the Metro link has fuelled price hike in this region. Despite this, buyers can definitely look to buy their dream house in these places.
East Bangalore: Buyers looking for a house in the east can look for housing projects in Mahadevapura or Hoodi.
West Bangalore: Nagarbhavi and Magadi are good locations to make investments in the West.
Buy or Rent?Though there are a number of residential locations in Bangalore where you can go house hunting, it is better to consider some important factors before buying one. Affordability is the key to buying your own house in a costly metropolitan like Bangalore. In addition to this factor, your budget and a secure home loan play an important role while buying a house. If the rent per month is almost the EMI of a home loan, it is always wise to buy a house in that area rather than living in a rented one.
For salaried people (earning anywhere between Rs 5 to 9 lakhs per annum) well connected parts of Bangalore like Kanakpura Road, Electronic City, Old Madras Road, Hosur Road, Tumkur Road, Sarjapur and Whitefield are great places for rental accommodation.
For people earning over Rs. 14 lakhs per annum, the above areas are good for buying. Mysore Road however is one area, where you can look to rent as well as buy.
As a prospective buyer, all you need to do is a thorough research about the locality, take payment and affordability into consideration and then use the free rent vs buy calculator online. You can then decide if you want to buy a house in Bangalore or live in a rented one.
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