Bangalore is gaining popularity for planned constructions

The Coronavirus pandemic has influenced home purchasers’ decisions in Bangalore.

Investors looking for large residences are increasingly contemplating residential sites that meet social distancing criteria. Furthermore, planned developments allow residents to customize and create their homes according to their needs and preferences, therefore plots and independent dwellings are likely to become more popular in the post-pandemic future. Localities in Bangalore including Yelahanka, Magadi Road, IVC Road, Devanahalli, Whitefield, Anekal, and Hoskote are seeing an increase in residential plot inquiries, and experts predict that this property type will remain dominant inside the coming quarters as well.

Planned developments are a prominent investment option In Bangalore

According to the Bangalore Insite survey for April-June 2021, interest for plotted developments within Bangalore’s price-sensitive purchasers stayed strong. The most sought-after plots in North and East Bangalore were those priced up to Rs 1 crore.

“Enquiries for residential plots have been pouring in largely from Karnataka residents,” Tanzeel Ahmed, Owner, Ahmed Real Estate, Bangalore, says, reiterating the trend. People in the IT business tended to favor ready-to-move-in flats because they were easier to sell. But, following COVID-19, areas in East Bangalore such as Banaswadi, HBR Layout, and T C Palaya are now seeing unprecedented demand in housing plots. Land is currently attracting both end-users and investors.Whitefield, Devanahalli, and Jigani have planned projects that are inviting investors from all walks of life. Electronic City in South Bangalore has seen an increase in the supply of residential projects, particularly planned complexes, because to the prominent IT centers in the area. IVC Road, Hennur, Rachenahalli, and Shettigere in North Bangalore remained popular among real estate investors. Although a 1000 sq ft land in North Bangalore costs around Rs 35 and Rs 40 lakh, a comparable plot in East Bangalore costs between Rs 30-35 lakh.”

Demand for residential plots in Bangalore is being fuelled by a variety of factors

COVID-19 pandemic

Homebuyers are now opting for larger homes that enable minimal interaction with neighbours, as social alienation has become the norm these days, as has the long-term tendency of working from home. As a result, purchasers who were previously engaged in ready-to-move-in flats have either delayed their choices or changed their concentrate to residential plots in the big scheme of things.

Plotted projects, in instance, have risen to ranks as a consequence of the pandemic, due to relatively small population, value appreciation, and minimal capital investment. As example, inside a city like Bangalore, where traffic is legendary, homebuyers have generally opted to live close to their workplace in order to reduce travel time, mostly at the expense of their lifestyle preferences. Homebuyers are now opting for residences who are not only more spacious but also positioned in far less populous locations, regardless of the property’s proximity to the workplace.”

Cuts in stamp duty

This fall in stamp duty rates contributed significantly to the increase in demand for residential plots in Bangalore. During the year 2020, the Karnataka government decreased stamp duty from 5% to 3% for properties priced between Rs 21 lakh and Rs 45 lakh, and from 2% to 1% for homes priced under Rs 20 lakh. Nevertheless, because over 75% of properties in Bangalore cost more than Rs 40 lakh, investors chose residential plots to ready-to-move-in apartments.

Location

Given the presence of the Kempegowda International Airport near Devanahalli, commercial office parks like Embassy Manyata Business Park, and the upcoming Metro rail project, North Bangalore is in great demand for residential plots. The metro’s completion is expected to get a substantial impact on property values. As example, because of geographical location to the Kempegowda International Airport, neighbourhoods like Bagalur, Sathanur, and IVC Road are already gaining traction (KIA). Furthermore, these areas are conveniently connected to that same HSR Layout and Whitefield IT clusters.

Safer proposition

Traditionally, residential land was already expected to appreciate faster than developed homes, particularly society apartments. A few of the variables that have catalyzed interest for planned developments in Bangalore include lesser capital expenditure, a higher rate of return, and greater rental possibilities.

The transition appears to be cyclical in nature because there was a time where apartment culture took hold and homebuyers favoured communal living. Although COVID has sparked a surge of backward vertical integration in homebuyer demand, this however, may have long-term ramifications thanks to the shortage of horizontal development space in metropolitan centres like Bangalore.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.