Property Management Companies Eastern Suburbs

The high price of property in Bangalore that too in central business district (CBD) areas, the peripheral and suburban locations are favored by investors now. Especially so when the budget is not too high and they are comfortable with the lead time.

Capital appreciation during the project’s implementation period is high in such cases. Witnessing the emergence of a number of residential property in Bangalore at competitive prices with improved connectivity and proximity to IT corridors, more land available, peripheral and the suburban locations. Market witnessing the launch of near about 22 residential property in Bangalore or across micro-market during the 4Q of last year offering a total number of 3,515 units against 7,817 units offered in the 3Q.

In the meantime, 16 residential property of Bangalore comprising 4,529 units across different micro-markets were withdrawn from active stock as they were completely sold out according to Jones Lang LaSalle market survey.

Micro-market of Hosur Road comprising Electronic City, Sarjapur Road, the South eastern parts of Outer Ring Road and Bannerghatta Road contributed 39% and the Bellary Road micro-market accounted for 26% of the new residential launches witnessed during the 4Q of last year.

The suburban property prices ranges around Rs. 3,990/ sq ft to around Rs. 8,100/ sq ft and the peripheral locations cost from around Rs. 2,200 to around Rs. 5,900/ sq ft. The Villas and Duplex homes are available around Rs. 1.15 Crores.

As the capital value have stabilized across various micro-markets which provides an ideal opportunity for residential property of Bangalore investors in suburban and peripheral locations to earn competitive yield on investments. Rentals are up here due to steady influx of people mainly in IT/ITES sector. Outset of hiring and hikes in salary levels by 6-7% where there is a renewal of interest among many to invest in second or even third homes as per property developers. Particularly to the price appreciation and the rental prospects likely to emerge in the changing market scenario.

 

Recent hike in home loan lending rates hasn’t had much of an impact on overall demand pattern for residential housing. As concessional home loans offers are being extended by some banks till March 31st to encourage more investors to invest. The factors such as hike in construction costs by 12-15% over the last six months and the capital appreciation witnessed are nudging NRI investors to take an early decision. Presence of professionally-managed residential property in Bangalore, management companies should augur well and convince NRIs with their hassle free maintenance services during their absence in Indian.

Having improved connectivity the demand of residential property in the vicinity of IT/ITES companies likely to go up including the scope for rental accommodation. Resulting an investors are looking at peripheral and suburban locations for the right options to derive maximum yield.

As said by industry experts, offering an immense scope in investments in suburban and peripheral areas which making the price appreciation due to attractive prices, prevailing competition and the growing demand for residential property.

Demand in rental accommodation is up to emergence of residential units in proximity to IT/ITES companies. Make sense for NRIs to invest in residential units as part of repayment towards the residential home loan can be offset through rental incomes. Furthermore, there is no wealth tax on residential property that is leased for a minimum period of 300 days in a calendar year.

 

There is no restriction on the number of residential units a NRI can buy in India but the citizenship of sale proceeds is restricted to not more than two residential units after a lock-in period of three years. Rental income can be restored every year after payment of appropriate local taxes if due.

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