When it comes to making long-term investments, property has been the go-to for most investors. Why? Because it rises in value with time and acts as an effective hedge against inflation.
In this regard, flats for sale in Bangalore are noteworthy assets. This is because this city’s real estate sector has exhibited great resilience over the years through various periods of market fluctuations. Keep reading to learn more!
Resilience of Bangalore’s Real Estate Sector Over the Years
Almost 10 years ago, there was a high demand for flats for sale in Bangalore due to its developing IT sector and high influx of people seeking job opportunities. This caused an increase in demand, leading to a rise in property prices.
In this regard, Whitefield and Koramangala experienced the highest growth, with property values appreciating by 60% to 80%. At the same time, peripheral localities had a comparatively moderate growth rate of 30% to 50%.
Now, 5 years ago, the real estate sector started showing signs of a slowdown. It was due to the oversupply of houses in certain areas, which created an imbalance in demand and supply, leading to a fall in property values.
Furthermore, demonetization by the government and major changes in its policies resulted in negative investor sentiment, leading to declining property transactions. As a result of this, to revive demand, the government introduced some regulatory reforms.
The first among them was the 2016 Real Estate (Regulation and Development) Act. It increased accountability and transparency in the real estate market, thereby boosting the confidence of investors.
Apart from this, the introduction of the Goods and Services Tax (GST) regime also provided a positive impetus. Hereafter, property demand started rising slowly back to its previous levels, along with its prices.
After this came the COVID-19 pandemic, bringing a series of lockdowns and restrictions. Between March and June 2020, property transactions in Bangalore came to a halt. However, in July 2020, real estate companies started advertising online. People were able to visit sites virtually.
In 2022, property prices in Bangalore again started showing an upward rise. In Q1 2022, there was a 7% rise in prices in comparison to the previous year. Now, as most individuals were still working from home, they needed more space and thus started looking for 2 and 3 BHK flats in Bangalore.
In 2023, property prices for ready-to-move-in units rose by 3% to 5%. Price rates for upcoming apartments in Bangalore increased by around 4.5%, while those of completed units appreciated by 3%.
Future of Bangalore’s Real Estate Sector
Now, in the next 5 years, Bangalore’s real estate sector is set to exhibit rapid growth. This city’s booming IT sector, smart-city initiatives by the government, infrastructural development, etc., will increase the overall living standard.
As a result, demand for flats for sale in Bangalore will increase, resulting in a significant price rise. Thus, if you are thinking of investing for the long term, buying property in Bangalore can be an excellent choice.
Looking to buy a 2 BHK flat in Bangalore?
Check out Mahendra Aarya. Our residential complex has 662 spacious 2 and 3-BHK apartments featuring spacious living areas with attached balconies, bedrooms with bay windows and well-designed kitchen/dining areas.
What’s more, there are 50+ on-premise amenities like a gym, roof-top infinity swimming pool, cricket ground, etc. to cater to your lifestyle needs.
Contact us today for more information on our flats for sale in Bangalore!