Rental Property Showdown: Ahmedabad Vs. Bengaluru Where To Invest
The real estate industry is one of the most well-known industries in the world. It consists of four sectors: housing, commercial, retail, and hospitality. The growth of this sector is complemented by the demand for office space as well as urban and semi-urban housing. It is also estimated that this sector will garner more investment from NRIs both in the short as well as long term. According to IBEF, the most popular property investment city for NRIs is expected to be Bengaluru followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun.
The demand for residential properties has grown exponentially due to increased urbanization and rising household income. India stands among the top 10 markets internationally for appreciating house prices. In 2019, Indian real estate attracted over US $6.06 billion in investments. There is also a growing requirement of space for educational institutions, healthcare, E-commerce, and logistics, better infrastructure overall resulting in more opportunities for investment, which has also contributed to the growth of the sector.
The two most promising cities in this sector for investment, according to experts are Ahmedabad and Bengaluru. Both are emerging as top contenders for rising real estate prices. There has been a steady growth in demand in both these markets for residential as well as commercial properties. In this article, we will compare both these cities to understand which is the best one to invest in at present.
Fastest Growing areas/location
Ahmedabad
Ahmedabad has been seeing a surge in demand for housing in the affordable category in recent times. According to the latest survey done by PropTiger, Nava Naroda, Vatva and Nikol are the areas where maximum sales occurred for the FY 2019–20. The other popular locations for a rental property in Ahmedabad are as follows:
Bopal
Bopal is another popular area in the city. The prices here on average are Rs. 3240 per sq. ft. From residential plots, bungalows, apartments as well as independent houses, there are so many options to choose from. To buy a property in Bopal, one will need to spend anywhere from Rs. 15 lakhs to Rs. 40 crores or more depending upon the exact location and the size of the property. Rental property in Bopal, Ahmedabad would cost anywhere around Rs. 5000 to Rs. 1.60 lakhs per month, again depending on the exact location and the amenities provided.
Chandkheda
Chandkheda is very well connected to IT Parks and the GIFT city. Its location is very strategic. In recent times, there has been a flummox of IT companies and other big MNCs in Ahmedabad, who have brought with them job opportunities for people of Ahmedabad as well as neighbouring states. This area is closest to the industrial area and so convenient for people with jobs nearby. The property prices here range from Rs. 15 lakhs to Rs. 3 crores. The average capital value stands at Rs. 3150 per sq. ft. The rental properties in Chandkheda, Ahmedabad range from Rs. 5000 to Rs. 2 lakhs per month depending upon various factors.
Thaltej
Thaltej attracts low-cost buyers because of its affordable price range and low-cost housing options. The area is in very close proximity to S. G Highway which houses most of the corporate offices in the city, it is also quite close to all the main areas of the city, therefore the demand for residential spaces is very high here. A 2-BHK unit costs around Rs. 50 lakhs on average while a 3-BHK unit costs around Rs. 95 lakhs. Rental property in Thaltej may cost anywhere between Rs. 8500 to Rs. Rs. 1.50 lakhs per month.
Satellite
Satellite area is the new center of the city. It is very well connected to the corporate side as well as other parts of the city. It is majorly a residential area. The prices here range from Rs. 1.30 crores to Rs. 1.85 crores. The AMTS and the BRTS both major public transport services in the city are well connected to this area. It’s proximity to corporate roads like S.G Highway has increased the housing demands in this area. The value of rental property varies from Rs. 6000 to Rs. 1.25 lakhs per month.
Vastrapur
Vastrapur houses the IIM, NIIT, AMA, and Gujarat University. The area accommodates a lot of students who study at these educational institutes. Even then the property prices are quite high in this area. Because of the campuses of these institutes, there is a lot of open space in and around the area, which makes for a good view of the interior of the city. Hence, the prices are quite high. A 2-BHK unit may cost around Rs. 75 lakhs on average while a 3-BHK may cost up to Rs. 1 crore. The value of rental property ranges from Rs. 8500 to Rs. 2.50 lakhs per month.
Motera
Motera now houses the world’s largest cricket stadium. Along with that the area will be very well connected through the metro trains which will directly link Motera with the International Airport in Ahmedabad. Owing to these new and better infrastructure developments, real estate prices have seen a rise in this area. The area is also well connected to the other major areas of the city through the ring road and the six-lane highway. The rental values of property here range from Rs. 5500 to Rs. 50,000 per month.
New Ranip, Gota and Vastral
These areas fall under the price range of Rs. 2000 to Rs. 6500 per sq. ft. The exact price will vary depending upon the specific location of the house or plot, the brand of the developer, and the facilities provided to the potential buyers.
Bengaluru
Bengaluru is one of the top emerging cities for investment in real estate and for job opportunities. When thinking of investing in real estate, one should definitely consider this city. The city has a bunch of options like luxurious villas, bungalows, apartments, rowhouses as well as affordable housing options to choose from. The improvement in connectivity, the commercial development, lower capital values, appreciation of the property, growth in rental housing and expansion of the infrastructure, and the key factors altering the realty game in Bengaluru’s growing areas like Attibele, Jigani, Abdigere, Seegehalli, Nallurhalli, Whitefield, Sarjapur Road South Bengaluru, and Devanahalli North Bengaluru. The details for the above property in Bengaluru are as follows:
Attibele
Attibele is very well connected to famous employment hubs such as Electronic City, Silk Board Junction, and Anekal. The availability of large areas of land along with IT hubs in close proximity has increased the demand for affordable housing in Attibele. The capital value ranges from Rs. 2500 to Rs. 3200 per sq. ft. The average monthly rental values for a 2-BHK are Rs. 6500 and for a 3-BHK are Rs. 10,000.
Jigani
The state has recognized Jigani as one of the eight upcoming industrial and residential hubs. It is very near to Bannerghatta Road and Electronic city and so the maximum demand here is driven by young IT professionals. The involvement of companies like HCL, Kirloskar Toyota Textile, BIOCON, and CIPLA, among others, has aided Jigani’s evolution. Overall, Bengaluru’s seamless connectivity, competitive property prices, and commercial base are luring property investors looking for new investment opportunities. The capital value ranges from Rs. 4000 to Rs. 4500 per sq. ft. The average monthly rental values for a 2-BHK are Rs. 9000 and for a 3-BHK are Rs. 11,000.
Abdigere
Abbigere in North Bangalore, which was once a manufacturing hub, has now turned into a promising residential hub. The proximity to the airport, Yeshwantpur Railway Station, and other areas of Bangalore such as Jalahalli Cross, BEL Circle, and PB Road have all contributed to its growth. Furthermore, Manyata Tech Park is just 10 kilometres away. Moreover, Abdigere is filled with numerous schools, healthcare centers, colleges, and entertainment centers. The area has a ton of options from luxurious villas to affordable and low-cost housing. It serves the housing needs of all types of buyers. The capital value ranges from Rs. 3000 to Rs. 4000. The average monthly rental values for a 2-BHK are Rs. 10,000 and Rs. 14,000 for a 3-BHK.
Seegehalli
Located in the East of Bengaluru city, the Seegehalli area is a growing locality that is in close proximity to K.R Puram and the National Highway 44. The NH 44 connects Bengaluru to Tamil Nadu and a bunch of other IT hubs. Because of its location and affordable pricing ranges as compared to other areas of the city, Seegehalli is one of the most budding localities for a rental property in Bengaluru. The capital value ranges from Rs. 3000 to Rs. 4000. The average monthly rental values for a 2-BHK are Rs. 7500 and Rs. 10,000 for a 3-BHK.
Nallurhalli
Nallurhalli is home to two of the most important IT parks in Bengaluru, Sigma Tech Park, and International Tech Park which have a multitude of automobile, technology, and telecom corporate giants. This area has emerged as a great solution for the young working population looking for residential properties which are close to their workspace as well as within their budget. The capital value ranges from Rs. 5000 to Rs. 5300. The average monthly rental values for a 2-BHK are Rs. 17,000 and Rs. 20,000 for a 3-BHK.
Whitefield
Whitefield is an amalgamation of corporate and residential spaces in the city. This area is very well connected to the major parts of the city. The average capital rates are Rs. 5500 per sq. ft. The area has a lot of lush green spaces and is one of the prime locations to buy a house in the city.
Sarjapur Road, South Bengaluru
This road is a hub for IT companies, which has led to the set up of large residential areas for people to live close to their offices.
Devanahalli, North Bengaluru
Located only 13.5 km away from the Kempegowda International Airport in Bengaluru, Devanahalli is one of the most emerging areas in Bengaluru. The area has options for all types of buyers from low-cost and affordable housing to luxurious bungalows and villas. It is one of the most growing markets in real estate in Bengaluru.
Conclusion
The real estate in both Ahmedabad and Bengaluru is growing at an exponential rate. As the rates are growing, it is the right time to invest in real estate in both these cities. While making an investment, one needs to exercise their due diligence and gather all the necessary information before investing.
