Have A Property In Bannerghatta? You Can Earn Rentals Up To Rs 3 Lakh

In April 2013, according to PropTiger.com, property values in Bengaluru's Bannerghatta stood at Rs 3,200 per sq ft. Four years on, values have climbed and the average stands at about Rs 4,366 per sq ft. Despite the slump within the sector and looming uncertainty, home buyers and investors are still up for an investment in Bannerghatta.

Here is what makes Bannerghatta a choicest real estate destination:

Location advantage

Easy accessibility to commercial spaces as well as a commendable social infrastructure right from hangouts to malls, renowned hospital chains, educational institutions and even a national park have lent the locality a lot of fame. Bannerghatta Road is closely followed by Kanakpura Road and comes as a boon for those who are well-settled and prefer a flourishing infrastructure and not emerging localities despite the price advantage.

A recent research by PropTiger.com, based on consumer preference in terms of the searches online, reveals that Bannerghatta receives as much as three per cent of the total online searches. PropGuide tells you why this micro-market may be good for your financial health as well.

Also read: 65% Home Buyers Looking For Affordable Homes In Mumbai, Pune & Bengaluru

Property values and rental returns

Over 12 projects are either in the launch stage or under-construction stage in Bannerghatta. On an average, property prices in the locality are in the range of Rs 9 lakh for small developments or plots to Rs 5 crore for spacious villas or independent bungalows. However, given that most homebuyers are asking for affordable homes, mostly in the 2-BHK variant, the rough range of these apartments could be Rs 30-75 lakh for a 2BHK unit. Usually, such 2BHK units when on lease garner anywhere between Rs 15,000 to Rs 50,000 per month. That is a sizeable sum. Therefore, if you are banking on rental returns, this locality serves the purpose.

Dinesh Vithal, broker, Aakash RE Services says, “There is a lot of demand for homes on rent in and along Bannerghatta, thanks to a lot of IT/ITes, and medical professionals as well as students. Even big homes that are high on rent attract college students or single working professionals most of whom prefer to share the accommodation with their friends and colleagues.” So, if you have bought, say, a 2BHK apartment in Bannerghatta worth Rs 75 lakh, the average rental return you could get is Rs 30,000 per month which comes to Rs 3,60,000 per year.

For investors, this is a healthy yield. This yield will vary depending upon the cost of the project, brand of the developer, exact location of the house and amenities.  

On an average, a 1BHK apartment in Bannerghatta costs Rs 28 lakh, 2BHK costs Rs 46 lakh and a 3BHK unit costs Rs 56 lakh.

Also read: After RERA, 1,000 Under-Construction Projects In Bengaluru May Find Takers

Yet to take shape

Some of the developments in and around this place include the Metro network Phase-II which is expected to pump up the prices in the area. Also, Bannerghatta Road may be widened, too. Despite a ten-year lag to do this, the Rs 150-crore plan to give a facelift to the road from JD Mara Junction to NICE Road junction is also resurfacing.