Why are property rates in Bangalore so high ?

Why are property rates in Bangalore so high in 2024?

Bangalore, often referred to as India's Silicon Valley, has been at a boom position in the property market for the past years. Moving into 2024, real estate prices in this city keep reaching high, and many are left in thought as regards the underlying drivers of this trend. This blog post will go further to discuss the current state of the Bangalore property market, breaking down costs, identification of high-yield areas, and offering insights to potential investors.

What is the average cost per square foot for residential property in Bangalore?

Rates of property of Bangalore vary greatly with locational factors, types of property, and amenities. Average rates in 2024 are as follows:

Note: These rates are indicative and may vary based on specific project features, developer brand, and current market conditions.

Some of those very influential factors which affect these rates are the following:

• Proximity to IT hubs and business centres

• Infrastructure development

• Quality of life and amenities

• Supply vs. demand dynamics

What is the cost of a 2 BHK apartment in Bangalore as per the latest property rates?

The prices of the 2 BHK (two-bedroom, hall, and kitchen) apartments vary to a great extent in Bangalore based on locations and amenities. Hence, the breakup for the same is as follows:

Note: These rates are indicative and may vary based on specific project features, developer brand, and current market conditions.

Key factors affecting 2 BHK prices:

• Total carpet area (typically 800-1200 sq ft)

• Age and condition of the building

• Amenities (gym, swimming pool, parking)

• Proximity to schools, hospitals, and shopping centres

Which area in Bangalore has the best rental yield?

For property investors, rental yield is given paramount consideration. In Bangalore, as of 2024, the following are some areas offering good returns in terms of rental yield:

Whitefield: 3.5 - 4% yield

• Close to major IT parks
• Good infrastructure and amenities

Electronic City: 3 - 3.5% yield

• Home to numerous tech companies
• Affordable property prices

Marathahalli: 3 - 3.5% yield

• Well-connected to IT corridors
• Growing commercial hub

Note: These rates are indicative and may vary based on specific project features, developer brand, and current market conditions.

What makes for high rental yields:

• Proximity to workplaces

• Transportation links

• Social infrastructure (schools, hospitals)

• Future development plans

Which is the best area to buy a plot of land in Bangalore in 2024?

If you're investing in land, here are some upcoming areas that need to be on your radar:

Devanahalli

• Near Kempegowda International Airport

• Upcoming Aerospace SEZ

Sarjapur Road

• Rapid infrastructure development

• Close to major IT hubs

Yelahanka

• Well-connected to city centre
• Upcoming metro line

Note: These rates are indicative and may vary based on specific project features, developer brand, and current market conditions.

Things to keep in mind while buying land:

• Legal clearances and documentation

• Future development plans

• Connectivity to major parts of the city

• Potential for price appreciation

Conclusion

While the Bangalore property market was strong in 2024, there were many other factors at work. First of all, the boom in the IT and startup sectors increased demand for both residential and commercial property. Next, the improving infrastructure—the new metro lines and better road connectivity—added to the attractions. A flood of young professionals into the vibrant Bangalore job market has precipitated demand for housing. Additionally, the limited availability of land in the prime areas has supported the upward trend in property prices, thereby making the real estate in Bangalore very viable for investment.

Key takeaways for potential buyers and investors:

• Research thoroughly before making a decision

• Consider long-term growth prospects

• Consult with local real estate experts

• Keep an eye on upcoming infrastructure projects

As Bangalore continues to evolve, its real estate market offers both challenges and opportunities. By staying informed and making strategic choices, investors can navigate this dynamic landscape successfully.

Transport and Connectivity to Bangalore:

Bangalore boasts excellent connectivity, making it easily accessible from various parts of India and the world. Here's a detailed guide on how to reach the city:

By Air:

• Kempegowda International Airport (KIAL) serves both domestic and international flights

• Located about 40 km north of the city centre

• Travel options from the airport:

• Airport shuttle buses (BMTC Vayu Vajra)
• Taxis and ride-sharing services
• Upcoming metro connection (expected completion in 2025)

By Train:

• Three main railway stations:

1. Bengaluru City Junction (SBC)
2. Yeshwantpur Junction (YPR)
3. Bengaluru Cantonment (BNC)

• Well-connected to major cities across India

• Suburban rail network for local commuting

By Road:

• Extensive network of national and state highways

• Major bus terminus: Kempegowda Bus Station (Majestic)

• Interstate bus services to neighbouring states

• Good connectivity with nearby cities like Chennai, Hyderabad, and Mumbai

Local Transport:

1. Namma Metro: Covers major parts of the city

• Purple Line: East-West corridor
• Green Line: North-South corridor
• Ongoing expansion to cover more areas

2. Bengaluru Metropolitan Transport Corporation (BMTC) buses

• Extensive network covering most parts of the city
• AC and non-AC options available

3. Auto-rickshaws and cab services (Ola, Uber) widely available

4. Bike rental and sharing services for short distances

Tips for Commuting in Bangalore:

1. Use metro for faster travel during peak hours

2. Plan journeys in advance, accounting for traffic

3. Consider carpooling options to reduce congestion

4. Download local transport apps for real-time updates

Upcoming Transport Projects:

1. Metro Phase 2 and 3 expansions

2. Proposed suburban rail project

3. Peripheral Ring Road to ease traffic congestion

By providing this comprehensive guide on reaching and navigating Bangalore, we aim to help visitors and new residents make informed travel decisions. The city's evolving transport infrastructure plays a crucial role in its real estate dynamics, making it an essential aspect of understanding Bangalore's property market.