Bengaluru real estate: Should NRIs invest in plots or apartments in the tech capital?

Bengaluru real estate: Experts say apartments offer convenience, rental income, and quicker returns. Plots provide flexibility and better long-term appreciation

With Bengaluru’s property market witnessing an increase in prices, especially in the luxury and premium segments, many Non-Resident Indians (NRIs) are eyeing the city as a lucrative investment destination. But one key question remains: should you put your money into an apartment or invest in a plot with long-term potential.

With Bengaluru’s property prices rising, especially in the luxury segment, NRIs are eyeing the city for investment, weighing apartments against plots for long-term potential. (Representational Image) (Unsplash )

Real estate experts say the choice between a plot and an apartment depends on your investment goals. Apartments offer convenience, rental income potential, and quicker possession, making them ideal for short- to mid-term returns. Plots, on the other hand, provide greater flexibility and long-term appreciation.

Apartments: Convenience and quick returns

Apartments currently offer an annual return of around 4%, with the potential for an overall return of up to 20% depending on location and market conditions. Brokers suggest that investors should hold the apartment until possession, as property values typically increase once the project nears completion and more residents move in.

The city's growing population and influx of professionals further bolster the rental market, making apartments a lucrative option for NRIs seeking regular income streams.

"North Bengaluru stands out as a hotspot for apartment investments.. Entry-level prices for a 2BHK apartment start at ₹1 crore, with rental yields ranging between ₹30,000 to ₹40,000 per month. Luxury apartments in the same region require an investment of around ₹2 crore, with monthly rentals between ₹50,000 and ₹60,000. Key areas to invest include emerging pockets like Thanisandra, Hennur, and Bagalur," Sunil Singh, director of Realty Corp, said.

However, in premium localities like Hebbal in the north, prices range from ₹10,000 to ₹12,000 per sq. ft., pushing the cost of a 2BHK to ₹1.25 crore to ₹2 crore. However, the rental returns are higher, of ₹40,000– ₹45,000 per month.

In East Bengaluru, entry prices hover around ₹8,000 per sq. ft. in areas like Whitefield and Old Madras Road, making a 2BHK apartment cost around ₹85 lakh to ₹1 crore.

South Bengaluru, particularly along Kanakapura Road, offers relatively affordable options at ₹7,000 per sq. ft., with rentals for a 2BHK in the range of ₹25,000– ₹30,000. In the luxury segment, prices reach ₹40,000– ₹45,000 per sq. ft., with an entry point of ₹1.5 crore.

Plots: Flexibility and long-term appreciation

Investing in plots provides NRIs with the flexibility to be developed or sold in the future, potentially yielding substantial returns. However, plots may not generate immediate income and often require a longer investment horizon.

Real estate experts say plotted developments are witnessing steady appreciation in Bengaluru, with annual growth rates ranging between 15-20%. However, the actual returns depend on factors such as location, developer reputation, and the overall project offering.

“Appreciation largely hinges on where the plot is located and who is developing it,” said Manjesh S Rao, Chief Real Estate Officer at BrokerInBlue. “Buyers should evaluate the amenities and infrastructure planned for the project. A gated community with good connectivity is far more likely to deliver such high returns.”

Many plotted development projects across Bengaluru now come with upscale amenities like luxury clubhouses, swimming pools, landscaped gardens, and open green spaces. Developers say these features not only enhance lifestyle but also boost land value, making such projects a safer and more attractive option for long-term investment.

In South Bengaluru, prices range from ₹4,000 to ₹18,000 per sq. ft., meaning a standard 30x40 site would cost around ₹50 lakh.

In the North, plot prices begin around ₹5,000 per sq. ft. in areas like Devanahalli and can go up to ₹8,000 per sq. ft. This region is witnessing faster appreciation compared to other zones. “In other parts of North Bengaluru, such as Hennur and Bagalur, plot prices in gated communities developed by Grade A builders are around ₹6,000 per sq. ft.,” said Rao. “These premium developments come with added amenities, which contribute to the higher cost. While smaller projects are available at lower rates, around ₹4,000 to ₹5,000 per sq. ft, they are relatively limited in number,” he added.

In East Bengaluru, plots on the outskirts of Whitefield are in high demand, with prices averaging ₹10,000 per sq. ft. Older layouts in the area are quoting rates between ₹10,000 and ₹14,000 per sq ft.