Until recently, buying a luxury home was synonymous with purchasing an upscale apartment in a skyscraper. But, considerable growth in the demand for privacy, comfort, tranquillity, and most importantly, exclusivity, is paving the way for a shift in this trend. Don’t you agree? 

Perhaps that is why investors have been up for tweaking their investment strategies and preferring to invest in bungalows rather than conventional residential properties.

In this blog, we shall shed some light on the reasons why bungalows are becoming the go-to option for real estate investment.

Top Reasons Why investors are finding it hard to overlook Bungalows!

Whether you are a keen investor or not, you would agree that the trend of investing in bungalows is catching on fast and for valid reasons.

• Income Through Customization 

One of the primary reasons behind the growing popularity of bungalows is the liberty to customize that it offers. Bungalows come with ample living spaces, both indoors and outdoors, and Investors can design and decorate the entire property as they wish.

You can pull the walls down, build extensions, add a balcony, or construct an extra room, a private office, or a personal gym, without having to worry about breaking any rules or affecting neighbouring properties. Most importantly, you can translate this customization into a high-paying asset by charging extra money for using it. It could be a garage, that extra room, or even the lawn.

Alternatively, you can charge extra fees from your renters or buyers for using the high-end amenities that your space offers.

• Attracts the Pool of High-paying Buyers/Renters

Bungalows provide an exclusive status symbol owing to their scarcity and high demand. This easily attracts high-net-worth individuals aiming to project a certain lifestyle. 

Also, they are close to nature with the greenery and scenic landscapes around – a boon for those seeking to draw themselves away from the clutter and bustle of the city. While these unique propositions set bungalows apart from other types of residential properties, they also attract a specific market of homebuyers willing to pay a premium price for the high standard and extravagant aesthetic appeal that it offers.

• Greater Appreciation Potential 

Although the initial cost of acquiring a bungalow is high, these properties appreciate faster than apartments. Bungalows in prime locations like Rajarhat and Newtown offer a higher return on investment (ROI) due to their limited availability and high demand. 

Additionally, given the rapid ongoing development of these areas, experts expect the appreciation to happen quicker as compared to other regions. However, make sure the area has prospects for land infrastructure development.

• Potential for Rental Income

Bungalows, with their distinct architectural style and spacious layouts, offer a great scope for earning passive income. With the trend of rentals shifting away from typical apartments and towards standalone properties, the demand for bungalows has significantly increased. 

Affluent families, celebrities, and high-ranking officials often prefer renting bungalows over apartments for extended stays, providing magnificent rental yield to bungalow owners. You might also want to consider renting them out as vacation rentals. They can effectively cater to the needs of tourists and families seeking unique and homely stays during their travels. 

Also, you can take advantage of economic conditions like inflation and increase the rent as per your preference. However, make sure they are consistent with the market rates, failing which you may have a tough time getting leads.

• The flexibility of Maintenance Expenses

Living in an apartment comes with certain restrictions, especially when it comes to repairs and maintenance. It can arise from the inability to change the exterior look of the building to restrictions on the kind of repairs one can carry out on their interior space. This is largely due to the shared nature of apartment buildings where changes by one person may potentially affect others living in the same building. 

On the contrary, owning a bungalow gives you unrestricted maintenance rights. There are no shared walls or facilities, so you are free to undertake any modifications, renovations, or repairs as they see fit. Moreover, having no common walls or shared building concerns means the responsibility and cost of any refurbishments fall solely on the bungalow’s owner. 

Although this might seem like a significant responsibility, it is typically lower overall because you are only maintaining your own property, rather than contributing to the maintenance of shared facilities as in an apartment complex. 

In a Nutshell 

Real estate trends are continually changing, and investment in bungalows is one such evolution. If you are intrigued by these lavish living spaces too, you must strongly consider investing in one of the most classy bungalow development projects, 24 East Avenue, in Newtown, Kolkata.