Properties Bangalore Showing Resilience to Economic Slowdown

The Electronic City of India, Bangalore, witnessed a slowdown in its realty market. High rate of inflation, devaluation of rupee against dollar, and high input costs have been the factors responsible for cauterizing of its property market. In spite of all this, the city’s performance has remained better as compared to other tier-1 cities of India. In fact, the city underwent far more number of real estate constructions as compared to other cities. A number of factors are responsible for the smooth sailing of city. Let’s have a look at some of them.

Properties Bangalore marked with good demand of residential properties. The city has remained largely end-user driven, and it is the steady demand that gave way for new constructions. With improved economic standard, people’s predilection remained more on property investment rather than any other type of investment. This had direct impact on demand market, and called for more supply. This way, the demand-supply ratio has not been a glum value as it is in other metropolitans.

Another factor that has not let real estate business in the city go awry is its stronghold over IT sector. Toady, it is the base to a number of IT/ITeS setups and corporate parks. The establishments not only gave a boost to commercial development, but also called for more residential properties. In fact, the demand for buy house and flats in Bangalore depends predominantly on software sector. Over years, the living standard has improve drastically. More employment opportunities are generated year after year, thus alluring more buyers to make property purchases here.

Another important factor worth considering here is the rapid pace of infrastructural developments. With the emergence of high growth areas such as ORR(Old Ring Road), Yelahanka, Bangalore Elevated Tollway, and Bangalore-Mysore Infrastructure Corridor(BMIC), the real estate got a clear push. ORR improved city’s connectivity to a large extent: it linked major Highways such as Old Madras Road, Bannerghatta Road. Tumkur Road, and Hosur Road. Bangalore real estate underwent a spurt along the suburbs through which ORR passes. Bangalore-Mysore Infrastructure Corridor(BMIC) intends to provide connectivity between Bangalore and Mysore.

 

Market Scenario for a Two Room House for Rent in Hyderabad Properties

Much ruckus was created before Telangana was created, and Hyderabad city found itself in the middle of different type of speculations. While several trade pundits predicted the rental market in the city to go only in one direction, i.e. down, the scenario post Telangana is indicating quiet contrary. After the division, the rates of rental properties escalated, especially in South Hyderabad. Over areas like Gowlipura and Lala Darwaja, the rental prices have almost doubled. Though in localities, rental rates went down, 2014 is expected to see in overall appreciation.

To know of the rental price trends, consider a 2 BHK apartment. Among the budget localities come names like Ameerpet, Begumpet, Boduppal, and Beeramguda. A hire a two room flat across these localities, a tenant may need to pay rent in 3-5k range. The monthly rental in 6-10k price bracket is prevalent in Tolichowki, Bachupally, Bowenpally, Lingampally, Madinaguda, and Nizampet. The other areas where the rental rates of properties in Hyderabadare almost similar are LB Nagar, Mehdipatnam, Madhapur, Himayath Nagar, Malkajgiri, and Domalguda. Some prime locations such as Gachibowli, D D Colony, KBHB, Miyapur, Kondapur, and Ameerpet too offer rental properties in this price bracket. A house for rent in Hyderabad with rental range 11-15k can be searched across S R Nagar, Hi-tech City, Srinagar Colony, Banjara Hills, Jubilee Hills, Nallagandla, Panjagutta, and Narsinghi.

As far as average per square feet rate of rental properties in Hyderabad localities come with different values. While Banjara Hills, Gachibowli, Hitech City, Jubillee Hills are some of the expensive places to live at, and the psf rates across these are high: 14-18/ sq. ft. D D Colony, Ameerpet, Begumpet, Miyapur, Malkajgiri, KBHB Colony, Kondapur, and Kothaguda carry average psf rates in 8-14/ sq. ft range. The population boom over Hyderabad’s Inner Ring Road(IRR) has attributed to the rise in rentals in Banjara Hills, Attapur, Begumpet, LB Nagar, and Nagole. The recent widening of IRR further gave a boost to rental rates in the areas lying on its either side. Areas around Charminar too have undergone price appreciation of their rental properties. To hire a rental property in Darulshifa, Khilawat, and Pathergatti, a tenant may have to pay rental in 6-10k bracket.

Two Room Flats for Rent in Bangalore Residential Property Options for Tenants

The Electronic City, Bangalore, has always occupied a catbird seat as far as the real estate market is concerned. Though the prices have not budged from their place from several years, the realty market’s performance is recorded better if compared to other tier-I cities of India. The demand for rental residential flats remains on higher side of graph, thanks to good employment opportunities, state-of-art-infrastructure, excellent connectivity and well-developed localities. Rental properties are the ultimate choice for tenants who have expatriated from other cities. The rates are flexible and the city has something to offer to tenants from different income brackets. Before hiring on rent, one must be aware of the ongoing price trends. This blog post throws light on rental rates are prevalent over different parts of the city.

Two BHK flats for rent in Bangalore in western region are generally available in 5-20k price bracket. For tenants looking for inexpensive options can make a hunt in Basaveshwaranagar and Yeshwantpur. The starting prices over these areas are concentrated in 6-10k range. Residential properties with monthly rentals are prevalent in Vijay Nagar, Munishwara Layout, Malleswaram, and Kengeri.

 Residential property in Bangalore in northern region too is available across variable price brackets. While the starting prices prevalent over RT Nagar, OMBR Layout, Kamanahalli, Ganga Nagar, and Rammurthinagar fall in 3-10k bracket. Hebbal, Banaswadi, Jakkur, Yelahanka, Horamvu, Amrutahalli, Thanisandra, and J.C. Nagar are the prime localities of North Bangalore: the rental rates for two room flat fall in 10-15k segment.

South Bangalore’s affordable locations are BTM Layout, Kanakapura, Koramangala, Electronic City: a 2 BHK can be hired at a rental as low as 7-8k over these localities. For hiring flats for rent in Bangalore over Hosur Road, Begur Road, Bellandur, Arekere, and Basavgudi, tenants must expect higher prices.

Chennai Real Estate: Renting More Preferable to Buying?

In light of the skyrocketing rates of properties in India, the realty market seems to shift gears. An average buyer is now more inclined towards renting a house rater than making a buy. Same is the case with Chennai where this trend is quite noticeable. According to Makaan’s Buy Rent Index(MBRI), this city has witnessed a rise in tendencies for hiring properties on rent rather than buying them. Over last two years, MBRI value increased by 7 points, shifting hitherto neutral Chennai real estate market to rental range. A value of more than 25 indicates that renting properties is more preferable than owning a house. While North Chennai MBRI stood at 27, South Chennai’s index stood at 28 in the last quarter of 2013.

With more demand for flats for rent in Chennai, the prices have escalated across its several localities. The stock of inventories is limited while the demand is on the higher side; this has resulted in price appreciation of rental home. The space crunch was also brought about by the non- availability of vacant spaces: the rental flats in the city have the tendency to get consumed quickly, thus keeping several tenants in lurch. This, in turn, made the landlords raise rents. Ashok Nagar and Egmore witnessed an appreciation of 13% and 8% respectively over Oct-Dec, 2013.

But there are several Chennai real estate localities where rental rates underwent depreciation in last quarter of 2013. Prices in Besant Nagar, Chromepet, and Chetpet went down by 8-10%, while in Alwarpet and Kilpauk, the rates saw a 3-5% decline if compared to the previous quarter. However, on the whole, Chennai’s increased preference for rental properties indicates that people find it more viable to live on rental spaces rather than purchasing their dream home.

Flats for Rent in Bangalore Properties :Price Brackets for a Two Room House

In spite of the economic slowdown, the demand for renal properties in the Electronic City, Bangalore has remained steady. In fact, the rental market in this city manages to perform well, no matter what the external influences are. This can be attributed to city’s strong infrastructure and constant job generation. As it is a parapet for IT setups and SEZ Parks, it attracts expatriates in large number. The demand for rental houses is thus driven by both the local inhabitants as well as these migrants. This blog throws light on the price rate of 2 BHK rental flats across its different location.

 

The Central region of the city has several posh localities like Benson Town, Frazer Town, Richmond Road. The price rate of a 2 BHK flats for rent in Bangalore fall in 10-70k range. Taking the starting prices into consideration, the localities where average monthly rental is below 20k are Ulsoor, Indira Nagar, Richmond Road, and Frazer Town. Over Richmond Town, Richards Town, MG Road, and Cook Town, the tenants may need to pay anywhere in 20-30k bracket. Most of the Central Bangalore localities are known for their well-developed infrastructure and high-end residential apartments.

 

Rental Bangalore properties towards North region are mostly affordable. A two room flat in R.T. Nagar, Kammanhalli, HBR Layout can be hired on rent in 3-8k range. Higher price brackets are prevelant in Jakkur, Hebbal, Banaswadi, Thanisandra, Sanjay Nagar, and Hennur Road: the 2 BHK rental flats are mostly concentrated in 10-15k price bracket.

 

The rates of rental properties in East Bangalore can cost a tenant as low as 5k and as high as 2 lakh and even more than that. In Marathahalli, Indira Nagar, Sarjapur Road, Old Airport Road, Kasturi Nagar, and AECS Layout, a two room rental apartment can be hired within 6-10k rental/month. Mahadevpura, Doddanekunte, CV Raman Nagar, Whitefield, OMBR Layout, Kodihalli, GM Palaya, Jeevan Bima Nagar, KR Puram, ITPL are some of the well-developed locations, and a 2 BHK apartment over these can be hired at a rental price above 15k.

Hyderabad Property Prices All Slated to Escalate This Year

Thanks to the much hyped Telangana division that Hyderabad real estate market managed to remain in news all through 2013. There is no denying to the fact the creation of a new state has been seen by both the developers and buyers as an issue of much importance. Now when the Bill has been given green signal, everyone is anxious to know in which direction shall the prices go. As per a report by the research firm Jones Lang LaSalle, the market prices shall see an appreciation in 2014. The market is heading towards recovery after facing a long period of stagnation.

The prices to buy property or rent house in Hyderabad have not budged an inch from their values since 2009. This makes the city a highly affordable market. But from investors’ point of view, it lacks any major potential. But in 2014, the things are expected to undergo a change. Currently, even the high-end localities in the city like Banjara Hills and Jubille Hills have an average per square feet rates lower than the other top-notch localities of Delhi, Chennai, Mumbai, or Gurgaon. Even a tier-2 city like Vijaywada has higher psf values than Hyderabad. This clearly indicates that the city has, so far, not succeeded in utilizing its potential to its fullest.

Hyderabad property has a leverage of carrying IT-driven localities, a factor that makes it as the popular choice for expatriates who wish to settle here. IT industry has proliferated in areas like Hi-Tech City, Miyapur, Gachibowli, APPA Junction, Kondapur, and Madhapur. These colonies remain high on demand for residential properties in the city. In spite of their up-to-the-mark infrastructure, presence of commercial giants, they haven’t seen any appreciable growth in their rates. According to Jones Lang LaSalle, the rates are expected to see a marginal increase of about 5%. It has predicted that market shall burgeon more once the Telangana issue is over.

How a Three Room Rent House Fares in Real Estate Bangalore

At a time when prices are witnessing year-on-year appreciation in metropolitan cities, the rates in the Electronic City of India, Bangalore have not appreciated too much. Given the fact that this city has a stronghold over IT sector and has excellent infrastructural facilities, the prices failed to see any rise over past several years. Bangalore’s market is largely buyer- friendly. As far as rental rates are concerned, these too are affordable for most tenants. In this blog post, we are going to see how a three-room apartment fares in terms of rental rates.

A typical three-room house for rent in Bangalore in the northern localities generally falls in 15k-60k price brackets. The starting prices at Hebbal, HBR Layout, Sanjay Nagar, and Yelahanka mostly stand at around 15-18k. AT RMV, Banaswadi, Jakkur, the starting prices are a bit higher: they are centered on 20k per month. RT Nagar, RMV, and Yelahanka have flats that can cost you somewhere near 40-80K. Let’s compare it with South Bangalore locations. As southern part mainly comprises of IT-driven colonies, the demand for properties, and their rate are higher. At HSR Layout, you can find a 3 BHK in a broad range of 22k-1lakh.

 

Koramanagla is another plush locality of South Bangalore that carries high prices. A three-room flats here comes in 24-70k bracket. Other prime localities like JP Nagar, Bannerghatta Road, Kanakapura Road, Jayanagar, Electronic City, and BTM carry high price segments. At Banaswadi, BTM Layout, Jayanagar, the upper limit is usually centered on 40k.

Prices trends of real estate Bangalore in central part are highest if compared to other areas. The rate for 3 BHK residential properties here starts from around 30k. A few of such localities are Ulsoor, St. John Road, Richmond Road, Benson Town, Frazer Town, Vasanthnagar. At Richmond Road, Levelle Road, Cubbon Road, Queens Road, and Commercial Street, you will find three-room flats at the starting rate of 40-50k. Higher rates are prevalent in Cambridge Layout, Cunningham Road, MG Road, Coles Road, Aga Abbas Ali Road, and Palace Road: for a 3 BHK, expect the prices up to 90k to 1 lac per month.

Options for Tenants Looking for House for Rent Properties in North and South Chennai

The absorption rate of residential houses in Chennai has gone all the way up, thanks to the way its suburban markets have flourished over years. The city is an IT stalwart and is bestowed with good physical infrastructure. This has helped the demand market to tread the upward graph. As the demand for residential properties escalated, and with this rental market too chartered new heights. There are several growth areas where the rental market is burgeoning at a fast pace. Let’s have a look what are the rental options for the tenants looking for a rental apartment across Chennai’s different suburbs. We shall limit our discussion to north and south parts of the city.

A two room rented apartments in Chennai in northern region carries some good options such as Avadi, Mogappair, Anna Nagar, Madhurvayal, and Madhavaram. Avadi is a major sub-urban area in north. Its excellent connectivity and up-to-the-mark infrastructure have gone very well with the realty market. Extending of Chennai-Tirutani Highway is on cards, and is expected to bring traffic congestion problems under control. Ambattur is another prime residential area for the tenants looking for rental properties in Chennai. Its Industrial Estate, spread over acres, is the biggest draw for small scale industries and IT parks. Anna Nagar is well-planned suburb, while Mogappair is known for the strong presence of software giants.

 

A house for rent in Chennai towards the southern part of the city has good options such as Velachery, Perungudi, Porur, Thoraipakkam, Tambaram, Mylapore, and Chromepet. The rental range across these, and the other localities varies from place to place. Velachery and Perungudi are the high growth areas. Velachery is well connected to GST Road ad CBD area, making it accessible from other cities. Perungudi’s strategic location to other well-developed areas like Thoraipakkam and Pallavakkam have imparted it much significance for property seekers. Navalur is yet another locality that thrives on it IT sector and connectivity to OMR.

What Works in Favor of Market for Residential Properties in Bangalore?

If property market of tier-1 cities in India is compared, the rates are highly undervalued in Bangalore. This, in addition to the fact that the city is a stalwart of IT sector, has worked wonders for the demand market. Unlike other metros, where developers are finding it difficult to get rid of the inventories, this electronic city has treaded a smooth path. The demand-supply ratio has remained in sync and it is because of this that Bangalore’s performance remained steady out and out.

 

The city is also distinguished for being the third largest hub for High Net Worth Individuals. To add to this, it ranks first in the number of NRI investments. It is because of city’s tremendous potential realty development that it is highly preferred by investors from India and outside. As far as demand for residential properties in Bangalore is concerned, the trends vary from one income bracket to the other. For example, high income segment buyers have predilection towards buying residential properties valued at 1.5 crore and above. Market studies have shown that in 2014, their preference shall be mostly for luxury villas, and row houses.

On the same lines, the seekers of mid-segment flats for rent in Bangalore show an inclination towards buying residential properties in 75 lakh-1 crore bracket. For middle income buyers, the factors that are of paramount importance are availability of basic facilities and convenience of commutation. Affordable residential houses, i.e. below 50 lakh properties are mostly developing in the outskirts of the city as there is ready availability of land there.

 

Mega infrastructural projects in city have transformed its shape. Namma Metro project is one such project that is expected to bring a good boost to the realty market. Currently, the second phase of the Bangalore Metro has been launched. This stretch connects Sampige Road to Pennya. Realty services firm, Jones Lang LaSalle’s part Segregation Funds Group has, recently, invested in a prestigious residential project. Valued at 24 crores, this project shall come up in Marathahalli.

Options for Buyers Seeking 2 BHK Apartments in Chennai Real Estate

Chennai, the largest commercial center of South India, is ranked 22^nd in the list of top 25 real estate destinations, according to a survey done in 2013. The strong presence of IT, automobiles, and pharmaceutical industries have been the contributing factors for city’s realty growth. During the recent inflationary period, Chennai constrained to maintain a steady growth in residential sector. In this blog post, we are going to see the options available for purchasing a 2 BHK apartments in its North, South and Central regions.

Let’s consider South first. For buyers on the look out for 2 bedroom apartments in Chennai, there are several budget and luxury options. OMR(Old Madras Road), Oragadam, Guduvancheri, Sriperumbudur, Siruseri, and Padur offer affordable apartments, with starting price in the 15-25 lakh bracket. Navalur, Pallikaranai, Chromepet, Mangadu, and Velachery are the other localities where buyer would find apartments in the same range. On the higher side, however, the houses with prices as high as 80 lakhs are also available across OMR and Navalur.

2 BHK Chennai real estate in other localities like Singaperumal Koil, Thoraipakkam, Medavakkam, Perungudi, and Sholinganallur, the starting rates are higher. Over these locations, a two-room flat is available in 35-45 lack bracket. At Thoraipakkam, the flats valued at 2-3 crores are available for buying.

In Central Chennai, buy house in the affordable locations for seekers of 2 BHK apartments are Choolaimedu and Poonamale Highway. However, the starting rates are quiet high across these locations: in 40-45 lacs. Arumbakkam, Shenoy Nagar, Nelson Manickam Road, Mehta Nagar, and Mylapore are some of the very expensive locations. The prices in Mehta Nagar, Mylapore, and Nelson Manickam Road can cost a property buyer in 1-2 crore.

In North, Avadi, Ambattur, and Ponamalle are good for budget buyers of 2 BHKs. Kolathur, Thiruniravur, Anna Nagar, and Mogappair have higher ticket values: 30-50 lakhs.