3 reasons why Bellandur is still a good buy
Bellandur, one of the suburbs of Bangalore, has seen a lot of demand for residential properties recently.
There are many reasons for this demand. The foremost being, that prices for apartments in Bellandur are more affordable. During the quarter April to June 2015, the average going rate for apartments in this area stood at INR 5500 psft. The general consensus among realtors is that apartments which are closer to the Outer Ring Road (ORR) will fetch a higher price as opposed to the ones that locate in the interior.
The second reason why Bellandur is popular is because of its proximity to the business districts, both on the eastern and southern side of Bangalore. Electronic City which is a major Information Technology (IT) hub is just 15 to 18 km away and, depending on the traffic density, takes about half an hour of commuting. On the east are Whitefield and ITPL which is about 12 to 15 km away with access through the ORR. Many companies such as SAP Labs, AT&T, Cisco, Intel, Wipro and a large number of SEZs (special economic zones) are close by. In addition to that, Bellandur is 6 km from Silk Board and 14 km from MG Road which is the heart of the Bangalore city.
The third reason why Bellandur has attracted the attention of home buyers is because of good road access. The flyover at Bellandur had eased the traffic congestion in the area to a large extent and reduced commuting time.
In recent times, Bellandur has been in the news for all the wrong reasons. The water body in this locality which goes by the name of Bellandur Lake is so polluted that the chemical sewerage in the lake combusted. Old Bangalore residents remember a time when the Lake was used for recreational purposes but the unplanned urbanization and poor waste disposal has turned this once pristine water body into a sewerage dump.
Until quite recently, builders were charging extra, what is known as the preferred location charges for properties overlooking the lake. A prospective buyer could bargain and bring this charge down, so when the lake is eventually cleaned up, and it will be; it’s a winner.
The Bangalore real estate market has been riddled with problems of oversupply and unsold apartments for the past few years. There are a large number of unsold apartments in Bangalore and on the last count the unsold inventory was valued at INR 85,000 crores.
There are of course reasons why so many apartments are not sold. The first reason is because of the location. Since most of the areas within the city are priced so high, builders move away to places outside city limits, which have no connectivity, piped water supply or electricity.
These far flung places have little or no infrastructure such as roads, schools, hospitals or shopping. This makes it difficult to live in these areas and, perhaps, is the second reason why people are not buying. The third important reason for no-sale is that many of the projects are overpriced and also there are clearance issues and legal problems. This is a major deterrent for a prospective buyer. Banks are also not willing to extend loans for properties which have legal issues.
The final reason, which is very relevant, is the poor quality of construction of a large number of flats. Many of the builders entered the construction field with the sole idea of making a quick buck and in the bargain have cut corners and sacrificed quality construction.
Nina Varghese for IndiaProperty.com
Image: By Amol.Gaitonde (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons