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Bengaluru Villa witnesses a remarkable 25% increase in prices, with some prime areas like Whitefield and Hebbal appreciating even more. Discover why investing in villas is becoming a lucrative option in the post-pandemic real estate market.
For nearly a decade, Bengaluru’s real estate market has seen villa prices in a state of dormancy. However, in a remarkable turn of events, the city’s villa market is now experiencing a significant resurgence, with prices soaring by an impressive 25%. This resurgence has breathed new life into the market, and developers are witnessing a surge in demand for these luxurious properties. In this article, we will delve into the factors contributing to this price surge, the current state of the villa market, and why investing in Bengaluru’s villas is becoming an increasingly attractive option.
The Current Villa Price Scenario:
The most striking aspect of this resurgence is the notable increase in villa prices. According to developers, villa prices have witnessed a surge ranging from 15% to 20% compared to pre-pandemic levels. Some prime locations, such as Whitefield and Hebbal in the north, have seen even more substantial appreciation, exceeding 25%.
To illustrate this, consider a villa in Bengaluru’s eastern Whitefield area. A villa that was previously available for Rs 2.8 crore had appreciated to Rs 3.2 crore by March 2023. Kiran Kumar, Vice President of Bengaluru-based Hanu Reddy Realty, highlights that villa prices have escalated from Rs 8,000-9,000 per square foot to well over Rs 12,000 per square foot. However, the availability of villa inventory for sale remains limited, creating a growing mismatch between supply and demand.
Bengaluru’s real estate market has historically been characterized by independent villas and plotted developments. This trend persisted for 15 years until the mid-2000s when the surge in apartment culture coincided with the rapid growth of the city’s IT sector. However, the villa segment is now experiencing a revival in the post-Covid era, which has acted as a catalyst for the surge in demand.
Rising Demand for Villas:
One of the most significant indicators of this resurgence is the substantial increase in demand for villa properties. Proptech unicorn NoBroker reports a remarkable 25% increase in villa property demand since August 2022. To put this into perspective, comparing the data to August 2021 reveals an astonishing 120% surge in demand for villa properties.
Pankaj Kapoor, Managing Director at real estate data analytics firm Liases Foras, offers further insights. He reveals that villa sales in Bengaluru have doubled, surging from 720 units in March 2021 to a remarkable 1,470 units in March 2023. This doubling of sales underscores the growing appeal of villas in the current market.
Supply and Demand Mismatch:
Developers in Bengaluru are witnessing a surge in sales, leading to a reduction in available villa portfolios. For instance, Concorde, a Bengaluru-based developer, has seen a 30% increase in villa sales post-Covid. Remarkably, villa sales now account for nearly 50% of the overall sales value in prime locations within the city.
Prime Villa Investment Locations:
While East Bengaluru has long been considered a hub for villa developments, newer micro-markets have also opened up to villa launches. Locations such as Hennur and Devanahalli in the north, and Kanakapura Road in the south, have started witnessing a surge in villa development. In the last two years, top localities that have experienced the highest demand for villas include Whitefield, Sarjapur, and Yelahanka.
Pricing and Appreciation:
The pricing of villas in Bengaluru varies depending on factors such as location and size. Villas with 1,500-1,800 square feet of space start at approximately Rs 1.5 crore. In prime locations and Grade A developments, the ticket sizes typically range between Rs 2 crore and Rs 3 crore for properties exceeding 2,000 square feet. Importantly, experts emphasize that villas have outperformed apartments in terms of appreciation over the past two years, making them an attractive investment option.
Prospective villa buyers are drawn to the spacious living and the unique advantage of owning the land on which the villa is situated. Even if real estate prices were to depreciate in the future, land prices are expected to remain on an upward trajectory, providing investors with a potential return of at least 20%, as noted by Kiran Kumar.
Rental Yield Comparison:
Another factor contributing to the increasing popularity of villas is their rental yield. Post-Covid, villas in prime areas have matched or even exceeded the rental yield of apartments. For instance, Liases Foras Research reports an average rental yield of about 5% in Bengaluru, while villas yield almost 4%, and in some areas, more than 6%. This positions villas as an appealing option for real estate investors, with expectations of gradual price increases in the coming quarters.
Shanders Projects: A Trusted Name in Real Estate
One of the key players in Bengaluru’s real estate arena is Shanders Projects, a name synonymous with quality and trust. Shanders Projects has earned the approval of several leading banks and boasts all the necessary government and statutory approvals. This recognition ensures that investors can embark on their real estate journey with confidence, knowing that their investments are secure.
Customization and Convenience: A Winning Combination
Investors in Bengaluru have the unique opportunity to tailor their investments to meet their exact needs. Shanders Projects offers not only plots of land but also the option to combine a plot with a villa at a price comparable to a 3BHK apartment. This distinctive offering allows investors to create their dream homes, with customizable design options ranging from 800 sqft to a generous 3600 sqft built-up area.
The Bengaluru Advantage: Location, Location, Location
Bengaluru’s real estate market is divided into three concentric rings, each offering distinct advantages. The innermost ring, defined by the Outer Ring Road (ORR) and home to the Central Business District (CBD), provides a prime location for those seeking proximity to the heart of the city. The second ring, formed by the Peripheral Ring Road (PRR), offers a balance between accessibility and tranquility. Finally, the third and outermost ring, created by the Satellite Ring Road (STRR), provides a more relaxed, suburban lifestyle.
Secure and Speedy Home Loans
Investors in Bengaluru can also benefit from the availability of speedy home loans. Shanders Projects has forged partnerships with financial institutions, ensuring that buyers can secure financing quickly and seamlessly. This ease of access to home loans adds an extra layer of convenience for those looking to make Bengaluru their home.
Invest in Your Dream Home Today
Investors are no longer limited to cookie-cutter apartments; Bengaluru’s real estate market offers the opportunity to invest in your own villa. The advantages are clear – you not only own a freehold property but also have the flexibility to customize your living space to your liking.
A Solution for Every Investor
Whether you are a migrant looking for a new home or an urban middle-class individual seeking secure and customizable investment options, Bengaluru has something to offer. Shanders Projects’ Real Estate Division was established to address the diverse housing needs of the city’s population, making it an ideal partner for those looking to invest in this burgeoning market.
Conclusion: Bengaluru Beckons Investors
Bengaluru’s real estate market is evolving, and it presents a host of opportunities for investors in plots and real estate. With trusted developers like Shanders Projects, customizable living spaces, secure investments, and speedy home loans, Bengaluru is indeed beckoning those with a vision for their future. Don’t settle for the ordinary – invest in Bengaluru and make your real estate dreams a reality.
Read the full article here Villa prices in Bengaluru see uptick for first time in a decade, jump by 25%
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