USEFUL INFORMATION FOR PROPERTY PURCHASERS IN BENGALURU
Bangalore, the Silicon Valley of India and the City of Lakes, whatever you may fondly call it, is a prime choice for entrepreneurs, millennial and baby boomers, looking to find a living space in this picturesque city.
The IT capital of India, Bangalore is in the hive of a massive urbanization spree and has hence attracted people in hordes from across the country. The city emerged as the world’s most dynamic city in a JLL study in 2018. A thriving IT culture, robust innovation ecosystem, smart city infrastructure, excellent transport network and a strong business culture makes Bangalore one of the top cities to live in the 21st century.
Due to its immense success in the business sphere, Bangalore has gained rapid traction in the real estate sector. Bangalore is building a variety of living spaces across the city to cater to various needs, aspirations and tastes.
Investing in a Residential Property in Bangalore entails meticulous assessment and planning. It is therefore imperative to arm yourself with every facet of housing information before embarking on a property hunt.
For optimum living experience in a metropolis like Bangalore known for its racy lifestyle, choosing a gated housing society is your best bet. Here’s why.
- Secured Living: Conventional housing societies come with robust surveillance systems, intercom facilities, and boom barriers. The provision of adequate manual security is also an added shield from unwanted visitors.
- Economical living: In a gated society, you get to experience a world of amenities ranging from outdoor sports and gymnasium to kids arena and clubhouse at a fraction of the cost. Since all the facilities are available 24/7 you don’t need to venture out of the complex to fetch them individually.
- Forge relationships: Since a large number of people live within the housing society, camaraderie builds up which ultimately leads to close ties. You won’t get such close-knit bonding in an independent house.
- Tranquil Environs: Housing societies are erected on expansive areas running into acres. They consist of huge open spaces, landscaped gardens, and jogging paths that act as a stress buster and boost your senses. Also, the air quality inside a housing society is always better from the city outside.
- Profitable move: Coming to the financial aspect, investing in an apartment in a housing society is a smart move. With living in housing societies becoming a trend, property rates in housing societies will swell massively in the future. So, if you are investing in an apartment in Bangalore today, you will stand to receive excellent returns in the ensuing years.
Things to keep in mind before selecting a property in Bangalore
- Legal aspects: Before settling down on a property, make sure that the project is approved by RERA and the government of Karnataka. Talk to the developer to make sure that they don’t deviate from the original plan and that they provide all necessary government-approved documents including clearance and occupation certificate.
- Reputation of the builder: This research will give you a crystal-clear idea about when you will get possession of the property, the quality of construction, type of amenities on offer and overall price appreciation chances. Scour for reviews on the web, read about the history of the developer and extract every possible info. Builders like Godrej, Salarpuria and Shapoorji are known for their timely delivery and quality of construction.
- Project location: Look for convenience, transport facilities, access to employment hubs, social infrastructure and property price trends of the location you have rooting for in Bangalore. A property near to the metro will help you bypass the traffic while going to the office.
- Apartment area: While reading the property brochure, make sure that you read these area terms carefully. a)Carpet area: This refers to the actual area of your apartment. b)Built-up area: This means the total area occupied by your carpet area and the walls combined. c)Super Built-up area: The sum of carpet area, built-up area and area of the apartment complex.
- Budget: This entails not just the market price of the property that is paid to the builder but a number of add-ons that come with it. a)Parking space charges b)Service tax c)Stamp duty d)Registration charges e)Home loan processing fees f)Electrification charges g)Floor rise charges h)Water and gas supply charges i)Club membership charges
- Amenities: Apartments come with a host of amenities. Make sure you select an apartment with amenities that you will actually use. There are builders who raise the actual price of apartments by dishing out facilities that will not come of any benefit for you.
- Price appreciation: Looking at the positioning of the project and the type of structure offered, you can forge an idea about its appreciation in the future. People in Bangalore prefer apartments on higher floors as they offer spectacular views.
Bangalore, the capital city of Karnataka, is one of the fastest-growing cities in India. It accounts for some of the large IT investments in the country. It is situated around 3, 113 Ft. above sea level in the Karnataka Plateau and the home to a population of around 12 million people. The population has been rising in Bangalore ever since 1950 as the city started investing largely in the education and public sectors. With all the developments in the commercial sector, Bangalore opened up thousands of employment opportunities for people in and out of Bangalore.
The city was known for its manufacturing industries before 1990 after which new national economic liberation policies and strong educational systems encouraged the development of the IT sector in Bangalore. After the massive development of the IT sector, Bangalore turned into an IT hub that hosts several national and international companies.
Bangalore, the Silicon Valley of India has an estimated population of around 12, 764,935. The population of Bangalore can be further divided as 41% Kannadigas, 25% Tamilians, 14% Telugites, 10% Keralites, 8% Europeans, and 6% a mixture of all races.
Kannada is the most commonly used language along with languages such as Tamil, Telugu, Hindi, Malayalam, Marathi, Konkani, etc. The Telugus and Tamilians also share a long history in the capital city of Karnataka along with the Kannadigas, as most of them migrated to Bangalore for better livelihood, the standard of living, education, etc. The male and female sex ratio of Bangalore is 908 females to every 1000 males. The approximate current literacy rate among the Kannadiga female population is 84.8% while the male population accounts for 91.82%.
The real estate sector has been booming in Bangalore over the past few years. One of the main questions while planning an investment in Bangalore is the land rates. It is the fourth most expensive city to invest in India and the real estate demand is driven by professionals that are looking forward to prospering their living standards by settling in Bangalore. Let us further understand the land rates and pricing trends in different parts of Bangalore.
The land rates in Bangalore vary from one area to another. The average cost of investing in Koramangala is around Rs 8000 per sq. ft. while rates in Rajaji Nagar are Rs 18,000 per sq. ft. Properties in Ashok Nagar cost around Rs 25,000 per sq. ft. while Malleshwaram around Rs 16,000 per sq. ft.
The price of the property varies based on its proximity to commercial centers, schools, colleges, hospitals, shopping complexes, hangout spots, provision stores, etc. Improvised infrastructure and connectivity are other add-ons to the rates imposed on the property. The value of the property also varies depending on whether the property belongs to the Khata A or Khata B list of properties.
Should you buy yourself a new home or should you simply rent one? This is a never-ending debate!
Rents and EMIs often Tally
If you are looking for a Property in Bangalore in a decent locality, one that is spacious and one that is packed with all the modern amenities then the rent is definitely going to be pretty high. Now there are several developers that deliver quality homes with all the sophistication at rates. So the EMI paid per month often would be very close to the actual rent that you might be paying. No matter how long you stay in a house and how much rent you pay, it is still not going to be your Property in Bangalore. But when you buy a house all the monthly expenditures go into a property registered in your name.
Easier and Affordable Home Loan
Right from the time, you think about buying a Property in Bangalore you are inspired to save more every time. Larger the down payment you make less would be the financial burden in the form of EMI. Strict monthly budgets, automated saving strategies, and other such plans would have to be executed so as to meet the objective of accumulating funds for the house’s down payment. And even after you purchase the property given that you would be paying the EMIs for several years it would keep you motivated to save more and avoid unnecessary expenses.
Nothing Beats the Freedom of Residing on your Own Property
Finally, it is always a great feeling to have your own place that you can call “home”. And you have complete freedom to customize the house and modify it to suit your taste. Interiors and other modifications within the property can all be done without worry. And all of this can happen if you are ready to pay just a little more than what you pay every month as rent.
RERA has also now made things favorable for home buyers. And the property prices in Bangalore are now pretty good in comparison with other major metro cities. So now would be a great time to buy your own home and obtain relief from the hassles of paying rent and exorbitant rental advances for a house.
Namma Bengaluru is divided into 4 pillars – the north, the south, the west and the eastern regions. Each of the regions has undergone a tremendous amount of transformation in terms of infrastructural development and growth. Several real estate projects are in progress offering all the necessary amenities for comfortable and luxurious living like parks, community centers, gymnasiums, play areas, swimming pools, educational institutions, and many more.
Best Areas to Invest In Real-Estate In Bangalore
Below we listed the best areas based on the regions:
North Region of Bangalore
North Bangalore offers a wide range of residential options starting from 1BHK, 2BHK and 3BHK apartments to luxurious villas. The areas which are hosting the prominent residential projects are Hebbal, Yelanka Road, Devanahalli and Hennur Road. The projects are available at various price ranges which can suit the needs of different buyer categories and their budgetary estimates. Commuting is also easy and comfortable due to several flyovers, expressways and metro stations which provide seamless connectivity via NH-7, Outer and Peripheral Ring Road.
Hebbal is a perfect place for families to stay amid a serene environment, surrounded by the beautiful Hebbal and Nagavara lakes and greenery. The area is one of the prominent locations in North Bangalore due to its improved infrastructure and the presence of some of the renowned IT Tech parks for example Manyata Tech Park and the upcoming IT SEZ park. The most elegant, innovative and luxurious residential projects of Bangalore are present in Hebbal. You can make a significant investment in this area due to its excellent connectivity to the different parts of Bangalore including the Kempegowda International airport. Schools, colleges and shopping malls are present in abundance in Hebbal, designating it as a safe choice for your future home.
Yelahanka was originally not famous for real estate projects but was more renowned as a hub for manufacturing industries and firms. Today this area has witnessed a significant jump in its residential demand due to its proximity to the Kempegowda International airport. Additionally, there has been a boost in the employment curve owing to the presence of many IT firms in this area. Yelahanka is still undergoing various development initiatives and offers options for affordable residential apartments with good returns.
3. Hennur Road
Hennur Road is one of the perfect places in North Bangalore where people will dream to have their future homes. The area has ample opportunities for being engaged in different adventurous and water sports activities like bike riding, go-karting, bowling, snooker, cricket, soccer, swimming, boating etc. There are premium residential apartments, parks, health care facilities, educational institutions, colleges which certifies the area to be an ideal place for staying with family.
Devanahalli had been essentially a quiet area in North Bangalore. But it has not reached a level of paramount importance due to its good connectivity with the Kempegowda International Airport. The main attraction of the area is the satellite township for example projects like Embassy Springs which provide all the comforts and luxuries required for a comfortable stay. There are several Tech parks in this region namely Financial City, Science Park and Aerospace Park. Multiple investments are being made in Devanahalli for infrastructure development, the most prominent one is the construction of a theme park and sports hub costing 1330 crores, spread across an area of 300 acres in the villages of Muddenahalli and Haralur.
Thanisandra has undergone substantial growth in the real estate sector both in the commercial and residential categories. The main reason for its significant upliftment is due to its well-organized and planned infrastructure. The area is well connected with different parts of Bangalore through both public and private transport facilities. Phase 2 of the Metro Rail project is also supposed to cross the area which would further enhance the connectivity within the city. Some of the key ongoing residential projects which you can focus on are Hardware Park, Bagalur Finance City and KIADB IT SEZ, KIADB Park and Shell Park.
South Region of Bangalore
South Bangalore is the most developed region as compared to the other regions of Bangalore in terms of infrastructure as well as all the necessary facilities required for healthy and comfortable living. Be it multinational companies, health care facilities, recreational arenas or educational institutions and colleges, south Bangalore occupies a higher rank than any other place in Bangalore.
1. Electronic City
The area offers a variable range of residential options in different price ranges. Electronic City is said to consist of an increasing list of residential properties essentially to house the working sector deployed in the IT parks located near the area. Hospitals, schools, shopping malls, banks are present in a significant amount which are added benefits for the people opting to reside in this area. The key residential projects in the area are GM Infinite Global Techies Town, Green Terraces etc. which provide you with a comfortable and pleasant living standard with budgeted rates.
2. BTM Layout
BTM Layout is one of the prime areas in Bangalore, connected with the key places of the city like Koramangala, Bannerghatta Road and HSR Layout. Due to its impressive infrastructure and wide range of residential options, it has been a preferable choice for many real estate buyers. Commuting options from the area to the different parts of the city has been enhanced due to the metro stations namely Banashankari and Rashtriya Vidyalaya Road. Its location has been one of the strong inputs for the high rental value of the residential apartments.
3. Kanakapura Road
Kanakapura Road has gained prominence as a residential area preferably due to the upcoming Metro line and the proposed peripheral ring. The area has been witnessing many real estate projects in both the commercial and residential sectors in recent years. It has well-established connectivity and significant infrastructural development thus attracting a lot of real estate investors.
4. Bannerghatta Road
Bannerghatta Road is one of the oldest places in Bangalore with easy connectivity to the prominent areas of the city like Mysore Road, JP Nagar, BTM Layout and many more. You can find some of the renowned schools of the city like the Radcliffe school and Clarence public school, in this area which makes it an easy and preferable choice for stay. The famous hospital of Jayadeva is also located in Bannerghatta Road along with other health care facility centres.
5. Sarjapur Road
Sarjapur Road, nestled in the southeast part of Bengaluru, is one of the hottest favourites for real estate investors. Sheltering buzzing IT corridors of the city, this location has a proven record of high returns on real estate investments. For many, investment in ready to move apartments in Sarjapur Road is preferred as it comprises a great mix of returns from their home investments. With the boom of the IT sector, there has been a huge boom in real estate development of both residential and commercial property in Sarjapur Road.
Attibele is a small village that has undergone a major revamp due to its proximity to Electronic City. The emerging residential properties in Electronic City has influenced the real estate growth in Attibele. Various residential projects, as well as land, are now available at variable price ranges, thus serving as a paradise for real estate investors. It is well connected with IT Parks like Silk Board Junction, Electronic City and Anekal.
East Region of Bangalore
Individuals from different parts of India opt to shift and reside in Bangalore essentially because of the multitude of career opportunities offered by multinational firms. The next basic requirement will be a perfect place for residence. East Bangalore provides both the privileges of being located to several corporate offices as well as a serene atmosphere for living. There are several residential projects in this area of luxurious and premium standard.
Whitefield is a commercial hub hosting several multinational companies and firms. To support the working population, it has a significant number of residential projects to support a high class of living standards. The purple Metro Line and the normal train services have been a boost to the area’s connectivity with the other parts of Bangalore. The majority of the IT parks are located in Whitefield and hence a popular choice for the entrepreneurs and the working group as a preferred residential place. The state government of Karnataka has approved two investment proposals in East Bangalore. One is of 13 acres of land for Oracle India Pvt Ltd worth 2438 crores, in the village of Kadubeesanahalli at the Outer Ring Road. The second one is 55 acres of land for Bluestone Tech Park worth 2051 crores, circumferencing the villages of Koraluru, Appajipura and Samethanahalli in Hoskote Taluk. These projects are potential opportunities for real estate investment, capable of generating substantial rental income.
West Region of Bangalore
West Bangalore had been mainly renowned for its booming industrial presence. But in recent years it has been alluring the real estate investors essentially due to its improved commuting options via the peripheral ring road. The property rates are still in the affordable range with good promising returns in the future as the region steps up its growth curve.
Nayandahalli is one of the areas in West Bangalore which has earned an approximately 35% increase in its real estate property rates in recent years. The primary reason behind it is the well-established connectivity due to the Metro Line and the establishment of corporate offices and business centres, thus opening up new career opportunities. It is located near Indiranagar which is an added advantage for the real estate investors and also individuals opting to stay.
With all the options mentioned above, you can indulge in a fair and judgmental decision on investing in real estate projects in Bangalore based on the budgetary ranges and the living standard preferences. It is very important to calculate the return on investment before deciding and finalizing the investment on any residential or commercial projects. Due to the increase in the number of companies and firms, Bangalore is witnessing a significant influx of the working population and simultaneously an increase in the demand for residential and commercial projects. The city is coming up with various innovative projects suitable for various budget ranges, offering opportunities for all to invest in their economic and financial conditions.
What is the cost of living in Bangalore?
For an average family living on a budget, the expense would amount to 8-10lakhs (no kids) and 12-15 lakhs (with kids) minimum in the first year itself. The expenses are tax included.
If you want to live comfortably, the expenses swell to 20-30 lakhs (no kids) and up to 40 lakhs (with kids) after tax in the first year.
For families looking to live life the affluent way, prepare to fork out 18-20 lakhs (no kids) in the first year itself. The expense balloons to 30 lakhs-35 lakhs (with kids) after tax.
Posh and Affordable areas in Bangalore
|Posh Areas in Bangalore||Affordable areas in Bangalore|
Before buying any property, you need to investigate all documents provided by the current property owner, and authenticate these with the agencies issuing the documents.
There are two kinds of documents to check for — primary and secondary documents of title. Primary documents of title are the most essential as they show the ownership history of the property being sold.
Some of the secondary documents of title help corroborate the information mentioned in the primary documents. The other secondary documents help the buyer assess whether the building is compliant with regulations and has been built according to plan.
Following are the primary and secondary documents of title.
Primary documents of title
This is the Sale deed, Gift deed, Partition deed, Allotment letter or similar, by which the present owner(s) have acquired the title to the property. This document is also referred to as the Mula Pathra, and includes the unbroken flow of the title up to the present owner.
Tracing of the title should always begin with the earliest available document, record or order by which a court, government or statutory authority gave the rights to the property to its first owner. Then, documents which identify the subsequent owners of the property through an unbroken sequence of legal acts up to the present owner, i.e. the seller, should be traced.
In some cases, many of these documents may have been lost over time; then the buyer should look at the earliest registered document available with the seller, and trace the title up to the present owner with the help of a lawyer. Since almost all properties in Bangalore have their roots in agriculture, it is possible for the lawyer to establish whether the property has clear titles and if it can be legally sold based on the secondary documents mentioned below.
Secondary documents of title
Building plan sanction
In case of apartments and individual houses, you need to have a Building Plan Sanction issued by the BBMP, BDA or the village panchayat in whose jurisdiction the property falls.
Sample of a plan sanction from BBMP
In case of vacant sites in layouts, you need to check for the layout plan sanction issued by the plan-sanctioning authority. For builder-developed independent homes, apart from the layout plan sanction, you need to have the building plan sanction from the BBMP or the concerned village panchayat.
The authority that registers a property transfer has to send the registration document to the local body (BBMP or village panchayat) for further action. BBMP/panchayat then opens an account of that property in the name of the registered owner once the owner submits an application and the prescribed fees. The register in which such accounts are maintained is the ‘Khata register’.
There is no specific mention of the term Khata in the Karnataka Municipal Corporation (KMC) Act of 1976; it is only an assessment register that compiles the details of each property in the city. The term Khata is a colloquial term and literally means an ‘account’. Thus, the Khata is an account of every person who owns a property in the city. You need to get a Khata certificate and Khata extract from the BBMP.
1. Khata certificate
The Khata certificate issued by BBMP will mention that a particular property number ‘N’ is held in the name of person ‘X’. The description of the property as well as tax assessed/paid will also be shown in the certificate. This certificate is required for applying for a water connection, electricity connection, trade licence and building licence. BBMP will give the certificate only to the owner of the property or to their legal heirs.
2. Khata Extract
The copy of the particular page in the Khata register in which your account is maintained, is called the Khata extract. It is issued by the BBMP, and states the name of the property owner and details of the property such as plot size, built-up area, etc. The owner can get this document by paying Rs 100, along with a requisition letter to the concerned Assistant Revenue Officer at BBMP’s zonal office. Only owners can collect Khata extracts.
Together, the Khata certificate and Khata extract are unofficially called the ‘A Khata’.
- ‘B Khata’
To include unauthorised layouts, revenue sites as well as buildings constructed in violation of by-laws into the property tax net, a provision was made under the Section 108A of the KMC Act. Details of the tax collected from such properties are maintained in a separate register called the B register. Development charges are not assessed/collected from these properties.
- Encumbrance certificate
Encumbrance Certificate means a certification of the record(s) of all registered transactions over a property – sale, mortgage, court attachment, lease, etc., or the absence of these.
If the land was agricultural land earlier, you need to have the Conversion Order. Conversion Order is an order for converting agricultural land into non-agricultural use; it is usually issued by the Deputy Commissioner after inspection and upon payment of fee to the state treasury.
3. Tax paid receipts
These are receipts issued by the BBMP, BDA or village panchayat, recording the payment of taxes for the property.
4. PTCL endorsement
The buyer can ask the builder/seller to get a Prevention of Transfer of Certain Lands (PTCL) Act endorsement. Either the Tahsildar or DC can issue this document. This is to ascertain that the property is not on land that had been granted to person(s) belonging to SC/ST communities.
5. Land Acquisition
The buyer can ask for an Endorsement from the Special Land Acquisition Officer of the BDA, BBMP, National Highways Authority of India (NHAI), the Karnataka Industrial Area Development Board (KIADB), Karnataka Housing Board (KHB), Bangalore Mysore Infrastructure Corridor Project and others, confirming that there are no acquisition proceedings underway with respect to the property.
6. Family Tree
This document shows the genealogical tree in the form of a flow chart, with the name and age of the family members of the present and past owners of the property. It also indicates whether the persons mentioned in it are living or dead.
8. General Power of Attorney
A General Power of Attorney (GPA) is a notarised document which empowers another person to act as your legal representative. A GPA executed by a person living outside India should be notarised in its country of origin, and stamped in India within four months of being notarised.
If the GPA is executed within India, it’s enough for the GPA to be notarised. (GPA had to be registered earlier; but the Supreme Court has ruled that it is sufficient if the GPA is authenticated by a notary public.)
However, if many people buy different sites based on a single notarised GPA, each will get only a Xerox copy which won’t be admissible as evidence in court. Whereas if a GPA is registered, every person who buys a different property based on same GPA can get a certified copy, and each such certified GPA will have the same value as the original one. But its authenticity should be separately checked, as impersonations are rampant.
As a buyer, you need to ensure that the GPA is valid, not revoked, and is provided by the person who has the legal right to give it.
It is important to have a competent and independent lawyer scrutinise all the property-related documents to ensure the property has a clear title.