Ready-To-Move Apartments In Whitefield, Bengaluru Update: Why Majority Of Homebuyers Are Settling For Such Properties
The demand for ready-to-move apartments is on the rise across the nation. Construction delays, government approvals, internal work-management conflicts at the builder’s end are a few reasons behind this rising demand for apartments that allow the buyers settle in as quickly as possible. A whopping 79% of residents in Bangalore preferred ready-to-move apartments. That number in Delhi NCR and Mumbai is 89% and 88% respectively. When it comes to looking out for ready-to-move apartments in Whitefield, there is plenty to choose from.
ETRealty recently reported that a certain percentage of the potential home buyers in Bangalore and Chennai still treat the ready-to-move property as their second preference. But the Real Estate market in Bangalore is going stronger by the minute after the brief demonetization episode. To serve to the growing need of the homebuyers preferring to move into a ready-to-possess apartment, Whitefield has over 10,000 such apartments awaiting to be bought.
PropIndex analyzed the average price for ready to move properties in about 8 cities they picked from a total of 14. The results indicate the visible impact is mostly noted in the higher-budget property segments. ET Wealth maintains that the higher-budget property segments boasted a 7% premium over the under-construction properties. This may be helpful in curbing the rising prices of the new launches in the coming days.
Further, the report highlighted that Bengaluru Index has registered 1% increase in the rising prices over the last quarter.
The report also states, “In the October to December 2016 quarter, 62 percent localities saw an average price increase of 3.1 percent, while the balance 38 percent localities saw 3 percent price decline. Price movement across all but one budget segment has been positive with price movement ranging from -0.8 percent in the Rs 6,000-9,000 per sq. ft. segment to 3 percent in the Rs 9,000 per sq. ft. budget segment.”
It is a natural development that when the demand for the ready-to-move apartments is surging, the prices are naturally going to rise a little. With the most preferred localities like Electronic City, Sarjapur and Whitefield having so much to offer in terms of variety in real estate, The Economic Times reported that the pre-launched properties in October-December 2016 period were found to be 3.1% more expensive than the under-construction initiatives. The construction speed is quite commendable too as 1500 apartments have been added to the preferred locations in the city in the last 2 years. The local and the NRI buyers are looking forward Whitefield area for making good returns in the years to come as this great locality has a lot to offer with a variety of options.
There are many factors involved in making a location a ‘preferred’ one when it comes to choosing an apartment. Apart from the obvious monetary factor, great eat-out places, options for indulgence, fun, party, nightlife and shopping etc. are the factors that increase the ‘preference-quotient’ of a locality. It goes without saying that people look out for hospitals, schools and banks etc. to be in a very close proximity to their residences. That’s exactly what makes Whitefield as one of the prime and most preferred locations as far as buying property is concerned. With international hospitals and restaurants, specialty market places, gated, premium and ready-to-move-apartments, Whitefield is fast becoming the center of attraction for the entire city. “Namma Metro” will soon connect the second phase of this locality with the heart of the city. As per the initial plan, the Purple Line is expected to cover 13 stations en-route Byapannahalli.
The mid-segment apartments, usually 2 to 2.5 BHK, are highly preferred and are in great demand in Whitefield. To make the deals even more interesting and attractive, almost all builders are offering world-class amenities like swimming pools, dedicated sports areas, club houses and recreational space.
As per the statistics by The Financial Express, Bengaluru is considered to be the third-largest pivot location for HNIs, the high Net-Worth individuals. Consisting of expatriates and corporates with massive salary compensations living largely in Whitefield area, the residential projects have registered a steady price growth over the years.
These are a few but solid factors that are helping the builders attract huge real estate investments in Bengaluru, especially the Whitefield area:
- Growth and development of E-commerce
- Rapid increase in start-ups
- Growth in IT Industry
- Significant increase in HNIs and Expatriates
- Medical Tourism
With Whitefield increasingly becoming a self-sufficient and self-sustaining ecosystem, the demand for ready-to-possess housing complexes is going to surge massively in the coming years. 2017, in fact, is going to be an extremely decisive year for the further growth of real estate sector. With not many launches lined up for the coming months and depreciating home loan rates, the demand for ready-to-move apartments is definitely going to increase, may be exponentially. Further, the fact that a considerable lump of tax paybacks on interest payments towards housing will go down the drain if the buyers are not able to avail the possession within 5 years of drawing out a loan, will add to the growing demand for the possession-ready properties.
“For someone in the top income tax bracket of 30 percent, such a delay can lead to a sharp drop in tax benefit: from 60,000 to just 9,000 a year.”
No body with a sane mind can be happy about such a loss. Generally, the majority of the potential house buyers are inclined towards moving into possession-ready apartments and hence, Whitefield will serve as an obvious choice to all such buyers.