Due to the expanding IT industry and rising exports, Bangalore has become a popular destination for investors across India. Additionally, Non-Resident Indians who wish to return to their homeland and invest in businesses have also demonstrated a growing interest in Bangalore. This growth has had a significant impact on the residential real estate market in the city. However, if you wish to maximise your profits, it is essential to understand which type of housing is more in demand among potential home buyers. Independent houses and flats both have their own pros and cons, so it’s important to compare the two before making a decision.
Independent Homes VS. High-Rise Apartments:
- PrivacyPrivacy is a crucial factor that influences people’s decisions when buying a home. It is believed that independent houses have an advantage over high-rise apartments when it comes to privacy because they are standalone properties. In contrast, apartments have common areas such as lifts, lobbies, gardens, and play areas that are shared by all unit holders, reducing the level of privacy.
- AffordabilityHigh-rise apartments are typically priced more affordably due to the builder’s ability to construct a greater number of homes on the same plot of land, resulting in economies of scale. Conversely, independent houses tend to be a more costly option due to their low housing density.
- Maintenance CostsThe maintenance costs for an independent house can be significantly higher since the individual homeowner bears all expenses. On the other hand, residents of an apartment building can pool their resources and share the higher maintenance costs, resulting in lower individual expenses.
- Land AppreciationWhen it comes to resale value, individual residences are better since their value is based on land appreciation. However, the value of the building itself tends to depreciate over time. In contrast, apartments have an appreciating value that depends on the growth of the neighbourhood, but there is no significant land value associated with the purchase.
- DemographyTaking into account Bangalore’s demographics, purchasing an independent house in a well-known location can be costly. Furthermore, due to the city’s traffic congestion, it is more convenient to buy an apartment in an area close to offices or schools.
The Area in Spotlight
A particular area that serves as an example of Bangalore’s real estate market and highlights the differences between apartments and independent homes is South Bangalore. This region has the highest number of residential properties (33%) available for sale in Bangalore, with society apartments accounting for nearly 80 percent of the total residential stock (Source: Bangalore Metro: Map, Timings, Route, Stations, Progress (2023)).
South Bangalore is home to numerous IT parks and commercial buildings that house thousands of offices. In this area, there is a clear preference among buyers for apartments, especially among the IT crowd who form the majority of residents. On the other hand, only locals or families from nearby towns tend to opt for independent homes. The locals may either own or buy a plot in the outskirts of the city, where they can construct their own homes. In such cases, they might keep one floor for themselves and build another floor to rent out.
As South Bangalore is connected to the new Peripheral Ring Road and the upcoming Bangalore-Chennai Expressway, there are expected to be more commercial opportunities in the region, which could lead to an increase in residential demand in the future.
Although the decision to choose between a house or an apartment is up to the individual, there is a clear trend towards apartment buildings. In recent years, Goyal & Co. | Hariyana Group has developed several apartments in some of the most posh localities of Bangalore to make living more comfortable and convenient. The predictive trend for the coming years is that there may be a rise in high-rise developments, particularly for affordable housing. However, other factors such as location, flexibility, privacy, safety, and amenities may also play a role in one’s decision-making process.
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