[Raghu M]

Originally Posted by am1m

This helps incredibly! Buyer experiences are plenty in Bangalore, seller experiences with facts really rare. Like this post mentions, everyone is very aware of the theoretical value of their home:

...but I have never actually heard anyone come out and say how much they really finally got for their apartment or how long it took to sell. Any information you can provide will be invaluable. Obviously not looking for you to disclose actual amounts, but would be good to know if you got your asking price or what percentage of it finally, and most importantly, how long it took. Thanks in advance!

Sir, I will post all details here. My flat was bought at 27 lakhs (1040 sq. ft, west facing). I spent around 5 lakhs for wood work, painting and lighting. It's in a pretty decent residential area and has great access to all the shops, hospitals and is a 30 mins drive to Hi-tech city. Once I sell my flat, I will share the nos. as well. For now, my ask is 46 lakhs. It's been 6 years since I bought this one.

[2000rpm]

Originally Posted by vinu_h

Looking for ideas to enhance property(monetary) value. Resale values have been flat.

Having happening restaurants, pubs, market like area are a sure way prices get higher.

[bullitt1]

The real estate value in Bangalore is flat to negative. What ever cosmetic beautification we can do to the flat, the resale would not increase by more than 5-10%. This is based on the flat resales that I have come across in South and East Bangalore.

[charanreddy]

Originally Posted by vinu_h

Looking for ideas to enhance property(monetary) value. Resale values have been flat.

Background - Apartment complex (165 apartments) I live in is 5 yrs old. Gym, pool, club house, meditation room, adequate parking, DG, security, well kept etc. This is a one hit wonder, not your well known Prestige, Brigade or Sobha. We have OC and all the necessary certificates from Fire, BWSSB & KSPCB.

…

Sorry to be the bearer of bad news but I am not sure you can.

Per my analysis of having lived in Bangalore for the last 15 years+ owning an independent house in the outskirts + having observed the property market , below are the key factors for appreciation.

1. Land vs apartment: Land value appreciates. Construction cost depreciates. Where there is a high degree of shortage of land and land values have gone through the roof, the apartments have appreciated. The formula looks like this

Land ( Undivided land share ) * appreciation % + construction cost * depreciation %.

In places like koramangla , sadashivanagar due to paucity of land, apartments have gone up in value but much less than what the equal land value had gone up by.

In places like BTM and HSR, the smaller apartment prices have not appreciated much.

In places like Rajanukunte, Sarjapura, Chandapura etc apartment prices have not appreciated at all as large tracts of land is available.

2. Brand of the apartment : there is a certain aspirational value to brands like Sobha, Prestige, Brigade etc. I clearly remember the prestige Shantiniketan example, where prices have appreciated by a much bigger percentage compared to apartments in the vicinity. Call it peace of mind coming from a big brand. Post Prestige Shantiniketan, the big builders have started charging for the next 4 to 5 years appreciation as well. So even for big builders don’t expect a lot of return in the first 5 years. One way a builder keeps up the appreciation bubble is to increase the quoted sale price every 6 months, so investors feel like money is growing but the transaction price is very different from the quoted price.

What can we do :

1. Don’t expect appreciation from apartments . But only for your personal use and not treat it as an investment.

2. For investment purpose use alternate strategies like SIP in equity / mutual funds.

3. If you are hell bent on real estate buy plots of land from non premium brands in high growth areas ( Devanahalli , Hoskote etc) with atleast a 10 year horizon. For example , in the new prestige city project in Sarjapura land retails for INR 5000 sqft. Barely a couple of KMs away you can get for INR 3K. Guess which one will grow faster!

[som9729]

Originally Posted by Raghu M

Sir, I will post all details here. My flat was bought at 27 lakhs (1040 sq. ft, west facing). I spent around 5 lakhs for wood work, painting and lighting. It's in a pretty decent residential area and has great access to all the shops, hospitals and is a 30 mins drive to Hi-tech city. Once I sell my flat, I will share the nos. as well. For now, my ask is 46 lakhs. It's been 6 years since I bought this one.

Which locality plz?
To get an idea of market

[adithya.kp]

I dont think one can enhance the value of apartment by doing such things. It will be stagnant after a few years. After 15 years or so, it will be very difficult to find buyers.
One thing I noticed is that the price of individual house/old demolishable house/sites has suddenly (since last 4 months) gone up by a lot. The sellers are quoting crazy rates and I have come across a few transactions too. I dont know how to read this. I agree the land is scarce. But these valuations defy all the logic

[audioholic]

At least in Bangalore property values have stagnated based on our experience from 2018 or so. That is because the city is expanding, supply has steadily increased and at the same time the mindset of people have changed drastically. In our residential apartment in a rather prime area, the rentals were high until 2019. After that, each empty apartment would be unoccupied for close to a year, since the asking rent was high and people would not be ok with it. After Covid, the rentals came down by at least 20% and yet with very less demand.

The actual demand is rising in the developing areas where people are finding more value. Due to lower home loan interest rates, people are picking up apartments so that the rent can be instead paid as EMIs. Areas like North Bangalore, Devanahalli are places where builders like Brigade are selling flats like hotcakes. But in places like Whitefield prices have rather gone down. How low depends on how desperate the seller is to sell the property. The rest are just holding on.

Speaking about a value of the apartment, its like options trading IMO. The real appreciation comes from the appreciation of the land value, and the apartment is just a premium charged. This premium depends on how many apartments are there(more the apartment, less would be the premium), how new the apartment is(decays over time) and rest of the things like build quality and amenities.

If the land value appreciates quicker than the premium for the apartment reduces, then you get a profit. Otherwise, it is going to be a loss over time. In the longrun, like 50 years what holds good is the land value divided by the number of owners. So if its a 2 acre land with 200 apartments, each owner would get some proportionate share in the property or its value. If we are talking about societies with 1000+ apartments, then determining the real value of the apartment is going to be mind blowing or just decided by demand v/s supply.

[Raghu M]

Originally Posted by som9729

Which locality plz?
To get an idea of market

Pragathi Nagar, near JNTU

[Brumby]

Real estate prices depend only on one factor, the area of the property and the location.

I can fix a layer of gold on the walls and floor of my house, have gold plated fittings etc, these things will not add value to the property. A buyer will look at only the area of the property and the location. Finding a buyer who's shares the same taste as ours and values the enhancements is difficult.

Everyone has his own preference/taste so other things do not matter.

[am1m]

Originally Posted by adithya.kp

One thing I noticed is that the price of individual house/old demolishable house/sites has suddenly (since last 4 months) gone up by a lot. ...But these valuations defy all the logic

There is no logic. The locality I live in is a good example. Narrow roads, 2 small cars can barely pass each other, crowded, noisy, frequent power cuts, unreliable water supply, garbage collection is erratic, not near a metro station, bad bus service. The only thing going for it is close proximity to IT parks. That has been enough for almost all the owners in the locality to demolish their original houses and put up 2-3 extra floors and give the units on rent. All running on borewell water/tankers and no parking. So much so that ours is one of the only 1+1 floor structures left in the locality where only the original owners stay. Covid had a bad effect on these rentals, but till then, the places were full and rentals quite high. Certainly, I should be happy, since I'm also hoping to sell eventually and retire outside Bangalore, but to me too, this sort of valuation for the kind of facilities and quality of life the locality offers defies logic.

Ultimately, it's location that really makes a difference to prices I guess.

[lamborghini]

In Mumbai it isn't uncommon to see some properties have a 10-20% mark-up from their surrounding neighbors. Unfortunately, many are designed from the get go to be luxury properties : so the amenities, flat sizes, finishes all reflect the same; and it is often hard for an existing property to see an uptick in price unless it's due to some development that would impact the neighborhood - such as better infra.
However, if there is a lot of development taking place - prices could remain stagnant or even drop slightly due to the supply coming in!

Some small steps I've seen many societies undertake to maintain their position:

1) Maintenance is key! In addition to routine maintenance, many societies here have a tie up with a local electrician, plumber, handyman, etc. who gives the building residents priority. In case of any small issue, these guys come and fix it for the residents and are paid directly by the residents - but the ease of getting this done by someone trustworthy becomes a big plus point!

2) Gentry too has become increasingly important as in Mumbai many buyers have shown a preference to Building A over Building B simply due to the quality of neighbors (please note, this has nothing to do with caste / religion / marital status etc. but more about the type of owners - business families, seniors at corporate firms, more end users and less investors, etc.)
This is further built upon by the society. Many larger buildings in Mumbai have a super pro-active management committee : organizing events to make the residents truly feel like a family - football & cricket competitions, festival celebrations with caterers, etc.
Similarly, during lock-down many societies had tie ups with Grocery Stores, vaccination clinics, etc. for their residents which became a big boon!

3) Don't break the rules! In Mumbai, one of the biggest challenges of a large building is having every flat owner make modifications in their flats. Often this causes issues to other flat owners such as leakages, or causes trouble with the Muncipal Corporation. While internal modifications are generally okay provided they don't impact any structural elements - many societies have become strict about modifications to Kitchen & Bathrooms, and those that would impact the external facade of the building.

[DudeWithaFiat]

Originally Posted by vinu_h

Looking for ideas to enhance property(monetary) value.
Do let me know what you did to enhance your property's value.

Put yourself in the buyer's shoes.

What would you look for in an apartment if you are shopping for one today?

Me?

1) A well-maintained society with an active association.
2) Amenities (park, pool, neat open area, etc)
3) Locality.
4) One with more 'end-users' than 'investors'.

Societies that I would avoid:

1) The too big, too many apartments ones where the campus gets treated like a 'public property' with no one wanting to maintain it as their 'home'.
2) Bachelor hot spots.

So it looks like the only thing that you actually control that may help in enhancing the apartment value would be maintaining the whole society.

[mxx]

Unfortunately, no matter how much money you spend on the property, you will not get a significant increase in value. Yes, proper maintenance and some beautification will ensure that the value wont drop too much (and even slightly increase value but not by much). The value appreciation is based on other factors like location, infrastructure around the complex, age of property, amenities etc.
Moreover as many other posts mentioned Bangalore property prices have stagnated for some time now. It would not be wrong to say that prices has slightly dropped from few years back.
The last statement is from personal experience. I recently sold an apartment I purchased 14 years back. I have been constantly keeping track of the prices since 7 years back because I was not longer staying in the apartment since then and had plans of selling when time was right. From 7 years back till I sold the apartment few months back, the price had gone up an average of 6-7%. Price was slightly higher before the pandemic and the prices went down after that. Now this is an apartment from top 5 builders in Bangalore, in a very sought after location in ORR with very good infrastructure, just beside the main road and the complex and apartment itself was very well maintained. The "non-branded" apartments nearby fared much worse after pandemic.

[ksakotai]

I think the No 1 factor in ensuring property value is having a smooth functioning society and residents who feel "invested" with their heart in the cohesiveness and well being of the complex. Of course this is from the perspective of a housing complex and not an individual house.

[Tucker48]

If a homeowner wants to increase the price of his house(or apartment), then most people will think that the intention is to sell which is counterproductive.