Apartments in Thanisandra — SWOT analysis of an idea to invest in them
Apartments in Thanisandra are currently being evaluated to be a fruitful investment opportunity. The area in North Bengaluru is witnessing a lot of changes in the form of civic development projects and real estate price appreciation. A number of factors contribute to this analysis voiced out by experts. But as a layman looking for investment opportunities, one would have to look into negatives and possible threats also. To help people decide, we have come up with a SWOT analysis of the idea of investing in an apartment in Thanisandra. For those who may not be familiar with what a SWOT analysis is, it is a technique used in decision making wherein the Strengths, Weaknesses, Opportunities, and Threats to a particular action are analyzed to help make a proper decision.
Availability of quality projects, lower price per square ft, proximity to nearby IT hubs are apparent strong points for buying an apartment in Thanisandra. There are about 35 projects that are ready to move into, with about 15 that are under construction. About five other apartments are in a pre-launch status according to reports. The going rate per square ft is about Rs. 4800 as compared to about Rs.6200 in Hebbal and Whitefield which stands at Rs. 5200. Popular builders have 1,2 and 3 BHK apartments on offer with prices ranging from 25 Lacs to 1.5 Crores that are loaded with amenities and modern features.
Thanisandra suffers points where most of the developing areas in the city also do. The locality may receive a few minus points from prospective residents. The area is prone to open gutters with individual sanitary connections not linked to the main underground drainage system. The Thanisandra main road is plagued by vehicles parked disorderly. The road condition is also dilapidated and vulnerable to rain damage. Certainly not on par with its counterparts such Whitefield, is the locality in Thanisandra. The more serious weakness would be the low rental price offering in the area. The average rent for 2 BHK apartments in Thanisandra stands at just Rs. 15,000 which is less compared to other areas.
A lot of positive transformations are taking place in Bengaluru which is set to impart a positive influence on an investment in Thanisandra. The proposed Namma Metro line from Nagawara to the airport via Thanisandra Main Road is a prime factor amongst others. Another important factor is its proximity to IT hubs such as Hebbal and Whitefield which are poised at imbibing more than 80,000 new employees in the near future. Good infrastructure development in Thanisandra combined with the fresh demand from a new populace on the lookout for nearby areas to settle offer immense value to investing in an apartment in Thanisandra.
In fact, according to a report made by a known international property consultant, Thanisandra is set to witness price appreciation to the tune of 55%. In light of that, the price per square ft is set to go up to Rs. 7450 by the year 2020.
Main threats would be something similar to what is being faced in the case of apartments in Electronic City. Jumping on to the opportunity presented, property developers rush to build houses. This leads to a situation of surplus inventory that slumps sales. The projects end up becoming unoccupied for a long time, leading to the creation of a ghost town. With occupancy largely related to the fresh intake of employees in the surrounding IT hubs, an overflow of apartments in Thanisandra is a threat to the idea of a prospective investment.