Nowadays. Real estate means investment rather than residency. It has become very common for investors to own a number of properties out of which one is used as a residence, while the others are used to generate rental income and gain profit. The taxation system is different on real estate for investment compared to the one used as a residence. The post will discuss about Bangalore real estate ROI (Return on Investment) during the decade.
What is Return on Investment (ROI)?
ROI is the amount of money gained or lost after an investment. It is generally expressed as a percentage and is typically used to make personal financial decisions and also to compare the efficiency of different investment.
Real Estate Investment in Bangalore
Over the years, Bangalore has been a hotspot for financial investment and has become an IT hub of India. A huge number of multi-cultural migrants are attracted to the place, due to large companies being stationed at Bangalore. Thus, there has been a strident elevation in the demand of the real estate. Bangalore is considered to be the consummate place for home buyers. Some people also plan to spend their life after retirement at Bangalore due to eccentric infrastructure and security reasons.
Recent researches about Bangalore real estate ROI show that the realty market has been stable in the city. It is also believed that there has been a steady growth of around 10% in the recent past. This huge demand for real estate in Bangalore is obvious to shoot up the prices of properties.
Bangalore enjoys a stable market for real estate investment and witnesses gradual growth in capital values, however, the average rental yields are better ranging between 2-4 % if put to compare with cities like Mumbai that yields about 1-3 %. Therefore, Bangalore provides an attractive investment option for investors looking for a less volatile market with a long-term horizon.
Some of the major micro markets which are worth exploring this year are Hennur Road, Airport Road, K R Puram, Old Madras Road, Sarjapur Road, and Bannerghatta Road. North Bangalore would see many projects this year and will continue to offer to investors and home buyers.
In the last one year, Bangalore has witnessed relatively quicker absorption and the total number of unsold housing units has come down. One can expect a maximum amount of return on investment and a minimal amount of loss in income.
Moreover, it is expected that Bangalore will continue to grow rapidly in the near future. As it has already established itself as a great destination with beautiful parks, gardens, and best and modern transport facilities. Bangalore is among the top cities and the amount of return is expected to be around 7.67%.
However, even though you may have to pay a huge down payment to buy a property, Bangalore real estate ROI eventually will fetch hefty returns. Also, if you are planning to rent your property, it can give greater returns. But this might differ according to the locale of the property.