Synopsis- This article examines whether it makes more sense to purchase an old apartment in established areas of Bengaluru city, or a newer flat in an expanding suburb. We will look at location, pricing, amenities and whether or not investment will bear fruit, and help buyers weigh the pros and cons, current market trends and the primary considerations to help them make a decision going into the future.
Introduction
Bengaluru’s vibrant real estate market is putting homebuyers at a crossroads—buy an old apartment in a city-entrenched urban hub or buy a new flat in Bengaluru’s expanding suburbs. Urban traffic congestion, hybrid working environments, and changing lifestyles have muddled the waters on this decision. With that in mind, this article attempts to unpack the key advantages and disadvantages to think about in order to make a smart future-oriented decision, looking at location, price, and future appreciation.
Old Apartments in Prime City Locations
Advantages
1. Prime Location & Unmatched Connectivity: Older apartment buildings in Indiranagar, Koramangala, Jayanagar, and Malleswaram offer ease of access to major IT hubs, CBDs, schools, hospitals, and shopping. The key advantage of living in these areas is drastically reduced commute times for anyone working in proximity to MG Road or Embassy Golf Links.
2. Established Infrastructure: City-centric residential areas are served by improved roads, reliable water and electricity supply, along with less municipal issues. Emergency response is available, and frequently Metro transportation will make it easier to connect.
3. Strong Community & Lifestyle: The mature neighborhoods provide residents with a sense of community and social stability, as well adding public uses such as parks, public markets and cultural spending.
4. High Resale and Rental Demand: There have been Durational condo values and rental yields for older units in central neighborhoods occasionally driven up by working professionals and students limiting the potential for unregulated rooming houses.
5. Ready-to-Move-In: Most old apartments are readily available to move into – excellent for a family relocating quickly or for an investor seeking immediate rental revenue.
Disadvantages
1. Higher Price per Sq. Ft.: Prime locations can be pricey- city-center flats can range from ₹15,000- ₹25,000 per sq. ft.- that is substantial compared to more suburban options.
2. Outdated Layouts and Amenities: There are limited modern amenities (e.g., swimming pools, gyms, EV charging stations, smart homes) in many old buildings.
3. Renovation & Upkeep Costs: There will always be potential ongoing maintenance including plumbing & wiring, tiling and any structural work may be substantial.
4. Legal & Compliance Risks: Some old properties do not have an Occupancy Certificate (OC) or ambiguous old title deeds which could lead to legal/title issues.
5. Loan and Financing Limitations: Even if banks are willing to lend for an old building property purchase, their loan tenure will be limited, or the Loan-to-Value (LTV) ratio will be reduced compared to new RERA-approved projects.
New Apartments on the Outskirts
Advantages
- Modern Design & Amenities: New projects will offer big rooms, big balconies, EV-ready parking, and energy-efficient buildings.
- Lifestyle Features: Many new projects will include swimming pools, gymnasiums, landscaped gardens, clubhouses, and security systems.
- Affordable Pricing: Prices are lower—buyers will be able to afford larger homes for the same price as compact city apartments.
- Future Appreciation & RERA Protection: Location will provide long-term good value growth. Further, the Real Estate Regulatory Authority will ensure timelines, provide a conveyance deed, and enforce against fraud
Disadvantages
- Long Commutes: The outskirts may still require long everyday travel to CBDs/tech parks due to incomplete local infrastructure.
- Developing Civic Services: There may still be planned hospitals, schools, or shopping malls undeveloped, which limits Day-2 convenience.
- Construction Delays & Noise: Ongoing work may mean noise and dust, and even after RERA, there may be construction defects or delays.
- Lower Initial Rental Yield: Rental demand may be slow initially, and short-term returns may be affected, until rental and resale markets mature.
Key Factors to Consider
1. Lifestyle Appeal: City living provides plenty of culture, dining, and social opportunities, while the suburbs can offer more peace, space, and greenery.
2. Commute vs. Flexible Work: If you are commuting to work everyday, your city home will probably save you commuting time. If you are working remotely or hybrid, it may very well be more comfortable for you to be in the suburbs.
3. Family Convenience: Established cities may offer a primary school, hospital, and grocery unit within walking distance, however, the new townships do offer integrated amenities as well.
4. Investment Potential: City homes provide reasonable rental returns and resale. Outskirts will provide a better appreciation at around 5-10 years, once the infrastructure catches up.
5. Budget considerations: New flats in particular are generally the more affordable option. City properties are more expensive, but on the upside, they are likely to have better commuting options and extended civic infrastructure.
6. Title Deed and other Legal Checks: Verify title deeds, RERA approval and occupancy certificates- especially for units that are under construction.
7. Possession timeline: Do you need a place to live today? Buy a resale unit. Are you able to wait? A new build may offer modern facilities and developer warranties.
Market Trends & Expert Insights
- Suburban Demand Rising: Lifestyle changes after the pandemic, especially working hybrid, have made suburban life attractive. Most homebuyers prefer living in larger spaces and homes over small apartment life in the city.
- Demand Increase of 15–20%: There has been an increased suburban demand for 2BHK and 3BHK flats of about 15–20% since the end of 2022 according to real estate consultants. There are young families and first-time buyers interested in suburban living.
- Key Corridors: Hot corridor locations with heightened infrastructure including Peripheral Ring Road in addition to Metro rail extension implementation, and better expressway connectivity include Yelahanka, Whitefield, Sarjapur Road and better connectivity.
- Affordability Gap: A 3BHK flat in Koramangala has an approximate cost of ₹2.5 crore, whereas similar or bigger flat sights are priced below ₹1 crore in Devanahalli. The price gap represents the affordability.
- Integrated Township: Modern township projects complete with schools, healthcare, parks, and shopping are also a significant draw. These ecosystems are redefining how the city of Bengaluru perceives housing trends.
- Growth in North Bengaluru: Near the airport, along with escalating residential demand for purchase, is also enjoying 20–25% growth for rentals, making it a great area for end-users and investors alike.
Conclusion
There’s no overriding winner, only what’s best for you. City apartments have established infrastructures and convenience but are more expensive. Properties out in the outskirts may be cheaper, have new amenities, and have added value in the future- perfect if you’re flexible in your commute and taking the risk on an emerging area. Make your decision based on your income, where you want your lifestyle to be, your financial goals, and accommodate your family’s needs. Always visit the property, go through an attorney, and consider if you’re willing to live there long term after spending the money to buy, before you invest.
Written by N G Sai Rohith
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