Why is it profitable to invest in an apartment in Bangalore now?

3 years ago

Why is it profitable to invest in an apartment in Bangalore now?

What is the right time to invest in an apartment in Bangalore?
The right time to invest in real estate is always now, goes the saying in the industry. If that is the case, then the obvious question arises why we are insisting on the present time. Of course, it is true that the right time to invest in real estate is always now, and the simple reason for it is that there is always a rise in property prices. 

So whenever you buy, you would get a profit if you sell your property a few years later is the common assumption. But that is not the case now. Just after the lockdown due to the pandemic, the real estate market conditions are favourable for the investors. The reason is, the buyers’ sentiments were really very low at the time of the global pandemic and the nationwide lockdown. Along with all other industries, the real estate industry also faced the problem of sluggish sales and a liquidity crunch. There were few added problems, too, like the migration of labour accounted for the stoppage of work as there was a shortage of labour throughout the nation. 

This shortage of labour and stoppage of construction accounted for an extra burden for the builders, along with almost no sales and no cash flow. There was a massive shortage of cash as well in across the real estate industry especially in the residential real estate sector. This phenomenon made the developers lower the prices. In almost all the nation’s major markets and the seven metro cities, a price correction was noted along with a reduction of bank interest rates, government subsidies through PMAY, and tax rebates. These measures surged the buyers’ sentiments suddenly, and people started to buy apartments and homes in all the major cities of India. 

Bangalore is no exception too. Here in Bangalore as well, this phenomenon of increased sales was noted, with the home and property sales at the IT capital of India going up by 60%. Experts opine that, although there were job losses and uncertainty in the market, the buyers could save the cost of buying an apartment or a home by 5% to 15%. This is certainly an advantage that every home-seeker would look for, and they are rightfully exercising the advantage of the scenario, and contrarily, the developers are in a situation where they are compelled to reduce the prices. 

This has made the residential real estate market a buyers’ market as the builders and developers are ready to get rid of the ready-to-move-in apartments or even homes under construction and the apartments for sale at a lower price. The builders and the property owners now are more amenable to lower price negotiation, giving the buyer the advantage they can rightfully reap. 

There is one more point to be considered, which makes it imperative for the investors of Bangalore to invest now itself as this situation does not seem to last longer. Although the sales were noted to increase, the new launches plummeted by 68%. This figure is even more for Bangalore, where the reduction in the number of new launches is one of the lowest. This means that the sales have gone up and the supply came down, and with the surge in demand, just after everything normalizes, there would be a shortage of supply with the demand increasing, making it a sellers’ market, which means the sellers would dictate the prices. 

The reason being, just after the aftermath of the pandemic, when the situation comes back to normal, there would be lesser unsold stock or inventory of flats or apartments in Bangalore. On the contrary, the buyers’ sentiments would be high as it is already high and the demand would increase, and in that case, the prices of the apartments would reach even higher, especially in Bangalore where there would be a higher influx of people ever than before when the job market starts functioning in full swing. 

At this time, when the prices of the apartments have gone lower, and the builders are ready to lower the prices as per the wishes of the buyers as they are in need of urgent cash flow, this is perhaps the best time to buy apartments in Bangalore as this situation does not seem to last for long. However, the same phenomenon would be noted in all other cities too, where due to lack of supply and the demand surging up or even remaining the same, the prices of the apartments would go up, but in Bangalore, this would happen faster than any other cities of India. So if you are planning to buy an apartment in Bangalore or even land or any other property, this is the best time to buy as just after this brief stint, the prices are bound to increase, exceeding the expectations of the speculators. 

This further explains why it is profitable to buy an apartment for sale in Bangalore right now as there would be more profit, as the capital cost is sure to surge higher in the immediate future. In such a situation, the best option would be to invest in an under-construction property at the right location with good future prospects. By the time the construction of the property would be completed, the prices would also be higher for the owner to sell the newly constructed home at a higher price. 

This is certainly a proposition of profit for the investor. If you are wise and a speculative investor, there is no reason why you should leave this opportunity as opportunities like these come only once in a millennium. So if you are an investor, you would probably not get a better time to invest and a better price than what you would get now. If you are planning for first-time ownership, too, you can buy now as the prices are at the lowest with the scope of further negotiation, and the cost of capital is at its lowest point as well due to the reduction of bank interest rates. So if you are really a serious buyer, buy your own home or apartment in Bangalore now!