Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Rising investments in Bangalore real estate

By Prop Tiger Subscribe to RSS | July 4th 2012 | Views:
loading
 
  



For investors in industrial property, Bangalore offers a plethora of choices across micro markets. The town has been notching up strong growth in terms of highest workplace area absorption within the country consecutively for years along currently. The city’s inherent strengths like healthy climate, cosmopolitan outlook, availability of professional manpower, give an atmosphere for corporates and MNCs to still expand their operations in and around the town.

A number of startup corporations give chance for smaller investors within the space vary of 5000 sq ft–20000 sq ft in specific locations like Koramangala, CBD and Indira Nagar. For larger transactions, areas like Whitefield and Outer Ring Road give limited choices for investment.

The yield on workplace area varies reckoning on the placement and rentals offered within the space. In prime locations, it varies from 9.5% to 10.0% pre tax whereas in secondary business districts like Indira Nagar, Outer Ring Road, Koramangala and Whitefield, it ranges from 10.5 to 11.5%. Whereas the price tag size is 5000 sq ft for smaller investors in CBD, in Secondary Business Districts, availability lies from 10,0000 sq ft and above.

There are green buildings that carry the advantage of operational benefits for occupiers and reduction in recurring maintenance value that the tenant is keen to pay a lot of rentals. There also are new entrants who are capable of committing buyback guarantees for investors if the yield dips below the benchmark level of 9-10 per cent each year. And therefore the net yield ranges from 7.5 – 8 per cent when TDS and native taxes.

The Bangalore commercial market has witnessed a healthy transaction activity throughout the month of May. Key transactions included Ericsson leasing in Umiya Business Bay, Longford Road, KPMG leasing space in Salarpuria Hallmark 1 and Axis Aerospace & Technologies leasing space in Vaswani Centropolis. Vacancy rates declined nominally because of stable demand amidst restricted fresh offer. Marginal appreciation of rents and capital values were recorded along the Outer Ring Road and SBD locations like Koramangala, Old Airport Road and Inner Ring Road.

Bangalore’s commercial market is predominantly driven by IT/ITES sectors though biotech, banking, insurance and monetary services do generate needs in and around the town. There are inherent strengths like quality buildings and reasonable rentals compared to alternative cities like Mumbai and Delhi that makes Bangalore a most wanted destination for both residential and commercial property.

The surge in demand for leased commercial area clearly indicates the buoyant market situation and therefore the guaranteed return on investment that investors are possible to urge across micro markets. However, an accurate tenant-mix and placement are key parameters whereas investing in commercial property in Bangalore. For high net worth peoples, it makes higher sense to speculate in industrial properties, as investment in commercial property continues to urge the exemption from wealth tax.

NRI/PIOs are allowed to speculate in commercial properties and that they will repatriate the rentals once a year without the requirement to travel to RBI for approval as powers have currently been vested with authorised foreign exchange dealers to impact repatriation of rental income. All that's needed may be a certificate from a CA that tax,has been completely paid and a certificate is issued in this manner. For NRIs, whereas repatriation for residential units is confined to 2 units when a lock-in duration of 3 years, there's no restriction on investment in commercial properties.

There's a slowdown within the commercial market of Bangalore for the past 2 months. Though the quantity of enquiries continues to drive the market resulting in clients’ inspection of the premises and negotiations on lease rentals, usually there's a wait and watch perspective among corporates and MNCs.

Prop Tiger - About Author:
Prop Tiger is an independent real estate advisor with a pan-India presence. We aspire to be your first port of call if you want to buy a property in Bangalore.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/rising-investments-in-bangalore-real-estate.htm

Related Real Estate Articles Subscribe to RSS

Want a sound investment advice? Opt for property investment
Published by Sophia Milller on December 13th 2011 | Real Estate
There are people that earn their living only through rents received from their properties. When the ...
 
Port Washington property a true place to gamble your money
Published by Jack Smith on July 17th 2012 | Real Estate
People are ready to gamble their money, but everybody wants to make good money from their investment...
 
HOA management- Capable providers for financial as well as property management
Published by Ema Sis on January 12th 2012 | Finance
HOA management companies shall be actual asset for communal administration amenities. They undertake...
 
Get a good office property in Gurgaon
Published by Atul Sharma on May 21st 2012 | Real Estate
The article is based on real estate property in Gurgaon. It talks about how you can get a good prope...
 
Hire estate agents Marlow for smooth property deals
Published by Ricky Charles on January 4th 2012 | Real Estate
Many businesses have flourished and doomed but the real estate business has somehow managed to keep ...
 
Get the best value of your property with Folsom Property management
Published by Nishaidhijames on August 23rd 2012 | Real Estate
Sale and purchase of property is an important part of man’s life. A person always tries to buy a h...
 
Real Estate property in jaipur, Rajasthan
Published by Mohit Singh on May 29th 2012 | Real Estate
RealPropertyIQ has seen development in real estate but the real estate pundits proclaim by everythi...
 
Reasons to buy commercial property in India
Published by Mike Nicholson on June 12th 2012 | Real Estate
Although there are numerous investment avenues in India to invest in, but there is no guarantee that...
 
Welcome good tenants to your property by choosing the convenient way of screening your tenants
Published by Pamela Walker on March 15th 2012 | Real Estate
Landlords and property managers should understand that bad tenants can give them sleepless nights. S...
 
 
Choosing trustworthy property consultant is beneficial
Published by Deepti on May 4th 2012 | Real Estate
Mohali is a full-fledged market of real estate. It is major part of tricity though it has now a sepa...
 
Rules when renting a property in Malaysia
Published by Jeevan Nanthan on June 10th 2012 | Real Estate
This document describes all the terms and conditions about the contract in detail. In case of violat...
 
Letting agents can help find good property
Published by Matthew Watson on June 4th 2012 | Real Estate
The letting agents have a critical role to play with the rental property letting. For tenants they c...
 
Penang: the property hotspot in real estate Malaysia
Published by Jeevan Nanthan on April 6th 2012 | Real Estate
Also, the high end condos and homes at Batu Ferringhi and Tanjong Bungah have helped in making Penan...
 
Finding property and buying it becomes with help of Real Estate Agents
Published by Melbourne Realestate on June 28th 2012 | Real Estate
If anything is done by the profession that creates a great impact. Same is in the case of real estat...
 
Know some facts before getting in contract for property buying
Published by John Mathews on July 20th 2012 | Real Estate
While you are looking to buy a home, there are certain things that you are to take into consideratio...
 
Some things to consider for first time property buyers
Published by Jeevan Nanthan on May 27th 2012 | Real Estate
All the points mentioned above if followed aptly can surely help in taking a wise decision while buy...
 
Online networking and property selling
Published by Matthew Watson on May 21st 2012 | Real Estate
There are many e-portals, which provide details on properties for sale. Anyone who wishes to put his...
 
The demand of property in Delhi NCR
Published by Maaya on May 24th 2012 | Real Estate
Having an own land or property in Delhi NCR is like a dream, the prices of properties are increasing...
 
Bienes raices en Aruba can provide the answers to all your worries related to your property
Published by Sothebysrealty Aruba on March 16th 2012 | Real Estate
The best way to find property in Aruba is to get hold of a real estate agent in Aruba for the best r...