Bangaloreans are the most enthusiastic when it comes to making an investment in residential plots, the recently published Housing Sentiment Index report by Magicbricks and IIM Bangalore has indicated.
Amongst the 12 per cent prospective buyers of land across the country, about 30 per cent are from Bangalore. These buyers invest in residential land not only to reap healthy returns but also with the intention to reside on this land after constructing a property.
Talking about the prospects of land investments, R Nagaraj Reddy, CMD, Zonasha Estates & Projects and President, CREDAI Karnataka says, “If you are looking for good return on investments, investing in land is a much better option than an apartment.” Bangaloreans seem to be following this advice a lot seriously than others.
The data with PropIndex, the India Apartment Index of Magicbricks also indicated a similar trend with 28 per cent buyers in Bangalore demanding residential plots. It also indicated that maximum demand for this property type was concentrated in the North and Western regions, closely followed by the South and the East. Only the Central region recorded low demand due to the unavailability of land parcels.
In terms of supply, south, north and west recorded slight shortage of around 2-8 per cent, whereas east recorded supply exceeding demand by 12 per cent. In the East, maximum supply of this property type is concentrated in Sarjapur, Hoskote and Whitefield.
In Sarjapur, maximum plots are available within a budget of Rs 10-20 lakh closely followed by Rs 20-30 lakh and Rs 30-40 lakh. Buyers can look for land as large as 5000 sq ft within this amount. There are a few options of 850-1500 sq ft plots as well. These are available within Rs 5-10 lakh.
Hoskote is a developing area in the periphery of the city and majorly offers residential plots. Almost 90 per cent of the inventory in this region is of plotted developments. Shiva of Sri Sai Enterprises says, “With plotted developments starting to convert into housing units coupled with infrastructural marvels such as the upcoming Pearl Ring Road and the Bangalore-Chennai Industrial Corridor, the area is expected to reap healthy returns in future.”
Similarly in Whitefield, while plotted developments are not in majority, but they form a considerable part of the total available inventory. Being the IT hub, Whitefield is one of the most sought after localities in Bangalore and has registered a capital appreciation of almost 16 per cent in last one year.
Other than these Eastern localities, healthy supply of plots is witnessed in areas such as Electronic City, Mysore Road and Devanahalli.