The capital and the largest city in Karnataka, Bangalore has risen to be a charming metropolis aided by significant developments, resulting in stunning reformations in its residents' lifestyle. Today, Bangalore hosts people from all over the world through its attractive employment opportunities in various sectors, making it one of India's top-preferred residential areas. A wide range of commercial and social infrastructures, transportation modes, and tourist attractions are just steps away. The city has transformed itself from a metropolis into a cosmopolis within no time at all. The above reasons stand for why Bangalore has been crowned with three distinguished titles - the Silicon Valley of India and Asia, the Garden City of India, and the IT Capital of India.

Bangalore remains one of the highly-preferred residential hot spots in India due to its abundant employment opportunities. No matter if you are planning to buy your first home in Bangalore or want to invest in real estate, this article discusses why now is the perfect time to invest in the real estate market of Bangalore.

Demand-Supply-Price Movement

Post-pandemic, Bangalore's Real Estate progress was comparatively slower yet successful. Various factors have prompted a boom in residential real estate demand, including job relocation, the opportunity to start a business in Bangalore, affordable lifestyles, and investment purposes when property prices were at their best.

Following a two-year lull in the housing sector from the pandemic, demand for residential properties is now higher than ever, but inventory shortages are rapidly causing property prices to rise.

Homebuyers and investors are gaining huge profitability on investments and faster rental yield. This is backed by a joint report of CREDAI, Collier India, and Liases Foras, which shows that property prices in Bangalore saw a 4% rise in Q2 compared to Q1.

Speedy infrastructural developments

Bangalore's modes of transportation have undergone a massive and ongoing upgrade. The Hybrid Namma Metro has been the latest addition, and in February 2023, more Metro Lines will be open. The Bangalore Commuter Rail (Suburban Railway Network) which is under construction, will further make it easier to commute within the city boundaries. Connectivity to the KempeGowda International Airport has been made effortless through various private cabs, Volvo Buses, and a proposed extension through the Namma Metro Line. Road connectivity is being improved daily due to the rapid increase in the city's population and the increasing vehicular movement that follows. Thus, the continuous improvement in Bangalore's transportation and connectivity can raise property prices sharply in the coming years.

Favorable Real Estate Policies

Since the Real Estate Regulatory Authority took effect in 2017, there has been a drastic change in the Real Estate Market. Unlike most states in India, Bangalore has lower stamp duty and registration charges under RERA Karnataka, which are diversified and more reasonable than those in most other regions.

In Karnataka, stamp duty charges have been slashed from 5% to 3% on properties valued between Rs. 20 Lacs to Rs. 45 Lacs. Whereas for properties valued below Rs. 20 Lacs, the charges are just 2%, and 5% for properties valued above Rs. 45 Lacs. Even if surcharge and cess on stamp duty are added (for properties valued above Rs. 45 Lacs), it goes up to 5.65%. Plus, the registration charges are just 1% of the property value.

In addition to the above benefits, over the past two years, the Government of Karnataka has stepped in to provide aid in housing loans, income tax relief for both developers and homebuyers, and thorough progress of the Pradhan Mantri Awaas Yojana.

Cost of Living and Quality Life

Bangalore, though the 5th costliest city in India, is relatively one of the cheapest Asian cities to reside in. Reports by Mercer's Cost of Living in Asia Survey show Bangalore ranked 178th out of 226. The minimum cost of living in Bangalore ranges from Rs. 20,000 to Rs. 30,000 and may fluctuate depending on how one spends on rent, groceries, transport, entertainment, etc. The cost of living does justice to the quality of lifestyle one has in Bangalore. According to reports by the Centre for Science and Environment, Bangalore is the most livable city in India backed by upmarket infrastructures, sustainability, upgrading living conditions, career opportunities, comparatively lesser crime rate, and economic competency.