Luxury Homes in Bangalore as an Investment Vehicle

1. Luxury Homes in Bangalore as an Investment Vehicle Investing in properties has been an age-old practice and one that has proven to be a successful & profitable venture. Land, property and homes have always been appreciating assets, although not all of the properties will increase in value with the passage of time and not all would appreciate at an equal rate. Time is only one of the factor that influences appreciation of property prices, some of the other factors include – nearby development, civic factors and external factors such as government decisions etc. In Bangalore, the real estate sector on the whole has experienced a phenomenal boom over the last decade. Although the public infrastructure has had its own share of troubles, other market friendly conditions have ensured that the reality prices in the city have continued to rise. An entire generation of home owners have found exceptional returns for their investment and today we see a new breed of home buyers looking to invest not just for the sake of sole- consumption but purchase property from an investment point of view. This generation has seen affluence grow to new heights and have the disposable income to afford new homes solely as investment vehicles rather than buying homes for self-consumption. Investment advisers have marked property as one of the high return investment options, however, at the same time advice exposure to be limited to 30-40% of the portfolio. This means investments into property shouldn’t be the sole option and investments are better spread out into different investment options. Also, when it is from an investment standpoint it is advised to purchase completed or ready-for-fitment projects. A sizeable chunk of investments into real estate have come from the NRI community who have both the appetite and disposable income. With liberal policies from the government, increasing awareness about properties and ease of purchasing property in India – investments by NRIs into real estate have substantially increased. Most of the purchases have been in 3BHK/4BHK luxury apartments, penthouses and luxury villas.