How Much Money is Required to Buy a Flat in Bangalore?

How Much Money is Required to Buy a Flat in Bangalore?

Bangalore, which is also called the Silicon Valley of India is one of the major centres of IT specialists and businessmen. These include favourable economic returns, congenial weather and global attraction that gives the city an added advantage over other areas. However, to buy a flat in Bangalore there are various factors like location, size and type of accommodation, kind of facility provided etc. and market situation. Below is the step-by-step explanation to make you understand how much money is needed for purchasing a flat in Bangalore.

1. Location: The Primary Factor

Availability plays a major factor in determining property rates across different locations of Bangalore. The city is divided into zones, each with its unique appeal and price range:

Central Bangalore: With premium location such as MG Road, Richmond circle, Lavelle Road, the prices of the flats goes for anything between Rs.15,000 to Rs.25,000 per sq ft. There are many low rises in this area and the cost of a 2BHK flat may begin from Rs.1.5 crore.
North Bangalore: Localities like Hebbal, Yelahanka and Devanahalli are the nascent residential localities owing to vicinity with airport and IT corridors. The cost of construction included comes to between Rs.6,000 and Rs.12,000 per square feet.
South Bangalore: The preferred location for developed localities like Jayanagar, JP Nagar, and Banashankari, the cost is varying between Rs 7,000 – Rs 14,000 per square cent to construct a property.
East Bangalore: IT destinations Whitefield and Marathahalli cost between Rs. 6,500 and Rs. 12 ,000 per sq ft.
West Bangalore: Places like Rajajinagar and Vijayanagar are slightly cheaper where the price per consolidated space varies between Rs.5,500 to Rs.9,000 per sq ft.

2. Location and Features of Flat

Decisions made on the size and type of the flat determine the total cost. Common configurations include:

1BHK Flats: Designed for bachelors/juniors or small families these are in the price range Rs.25lakh to Rs.60 lacs depending on area.
2BHK Flats: Pension is common in nuclear families and these cost from Rs.50 lakh to Rs.1.2 crore.
3BHK Flats: Designed for large families, the starting price of the apartment ranges from Rs.80 lakh and could touch Rs.3 crore or more in micro markets.
Luxury Apartments: Luxury flats with all facilities in the right location may range between 3 crores to 10 crores rupees.

3. Amenities and Facilities

The lifestyle facilities that new modern residential developments in Bangalore comprise incorporated functions such as swimming pools, gymnasiums, club houses and lawn areas. Such facilities lead to an overall cost push of the flat. Basically, houses situated in gated communities or houses with special amenities cost 20 to 30% more than usual apartments.

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4. Additional Costs to Consider

The general price that people pay for flats does not only include the cost of the initial payment that they are offered by the suppliers. Here are some additional costs to factor in:

a. Stamp duty & Registration charges

- Both stamp duty and registration fees are levied on residential properties in Karnataka with an estimated value of 5 to 6%, and 1% respective of the estimated value of the property. On a flat which is worth Rs.50 lakhs, these could scale up to Rs.3 lakhs.

b. Goods and Services Tax (GST)

- For under construction properties, GST is charged at 5% of the cost price of the flat. Flats which are ready for occupation or sale are GST exempt housing units.

c. Maintenance Deposits

- Construction companies still recover likewise maintenance charges from Rs. 1 lakh to Rs. 5 lakh as a one-time payment during the booking of the apartment.

d. Home Loan Processing Fee

- In case, you decide for taking a home loan; banks demand the processing fees ranging from 0.5% to 1 % of the required amount.

e. Interiors and Furnishing

- Furnishing for new home interiors may require an extra Rs.2 lakh to Rs.10 lakh depending on your desire.

5. Current Market Trends

Currently there is moderate activity in real estates of Bangalore with fairly constant increase in property prices. Affordable housing in areas such as Whitefield, Electronic City and Outer Ring Road that are IT hubs are greatly demanded. There is also the fact that resale homes come at relatively reasonably cheaper prices than new homes within the same region, by about 10–15%.

6. Budgeting for Your Purchase

To estimate the total cost, here’s an example for a mid-range 2BHK flat in North Bangalore:

Base Price: About 75 lakhs (consisting of a construction cost of 7,500 rupees per square feet for a 1000 square feet of area).
Stamp Duty and Registration: Rs.4.5 lakh
GST (if applicable): Rs.3.75 lakh
Maintenance Deposit: Rs.2 lakh
Home Loan Processing Fee: Rs.37,500 (assuming 80% loan)
Interiors and Furnishing: Rs.5 lakh
Total Cost: Rs.90.62 lakh

Also read: How Much Money is Required to Buy a Flat in Bangalore?

7. Tips to Save Money

Choose Emerging Locations: Choose emerging locality of real estate investment like Hennur or Sarjapur Road, where rates are still comparatively low.
Negotiate: The Allottees privileges include a VIP in the building and a waiver or discount on the maintenance deposit or GST for the early birds.
Consider Resale Flats: These can be cheaper and if they meet the criteria do not attract GST.
Plan for Future Development: It can therefore be suggested that investment can be more optimistically placed in areas where there exist plans to extend the metro or retain the infrastructure.

Conclusion

The price at which you obtain a flat in Bangalore may not be the same, whether it is an affordable or luxurious house, the place it is located, or the space it has. While a simple one-bedroom house in the outskirts will cost anything between twenty-five lacs to thirty lacs, luxurious apartment halls in the central city cost more than five crores rupees. While making your purchase, one has to consider other costs such as registration, GST and interior decoration for the car.

You need to know what to look for, how to come up with the resources to buy the product, and when the best time is for buying a particular product. There is a good inventory of affordable homes across Bangalore, and if you’re in the market for something more upscale, a dream villa or penthouse is never far out of reach.