Bengaluru has emerged as a shining spot for real estate investors offering a sound return on investment and assured rental income. With the IT/ ITeS sector driving real estate demand, the city boasts of strong macroeconomic dynamics and stability.

Despite demonetization, property prices in Bengaluru have not witnessed any violent fluctuations or crash and the real estate market of the city hasn’t lost its momentum. According to experts, around 40% of the under-construction projects will be ready-to-move-in the next three-four quarters.

For investors looking for a stable market with a long-term horizon, Bengaluru provides many attractive options. Most of these residential hubs are self-contained units with amenities such as parks, hospitals, schools and colleges, retail outlets, and restaurants. Here’s a list of five promising residential hubs to help investors make an informed choice:

North Bengaluru

The northern zone of the city gets a thumbs up from most experts as a viable long-term investment option.

Property values are on the rise here due to connectivity via the Outer Ring Road (ORR), proximity to the Kempegowda International Airport and easy access to the Central Business District.

The Yelahanka area is home to many defence establishments, making it a safe and peaceful residential option. Other areas like Hebbal, Devanahalli and Thanisandra are investment favourites due to large banks of undeveloped land.

Infrastructure initiatives: Real estate in North Bengaluru stands to directly benefit from the development of the upcoming Aerotropolis, IT, and Aerospace parks. Road widening projects and the development of large-sized townships are improving prospects in areas like Hebbal and Devanahalli. The proposed mono rail could also be a significant value add, if approved.

Buying real estate is about more than just finding a place to call home. Investing in real estate has become increasingly popular over the last 50 years and has become a common investment vehicle.

Although the real estate market has plenty of opportunities for making big gains, buying and owning real estate is a lot more complicated than investing in stocks and bonds. In this article, we'll go beyond buying a home and introduce you to real estate as an investment. (For more, see our Real Estate Investing Guide.)

Basic Rental Properties

This is an investment as old as the practice of land ownership. A person will buy a property and rent it out to a tenant. The owner, the landlord, is responsible for paying the mortgage, taxes and costs of maintaining the property.

Ideally, the landlord charges enough rent to cover all of the aforementioned costs. A landlord may also charge more in order to produce a monthly profit, but the most common strategy is to be patient and only charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit.

Furthermore, the property may also have appreciated in value over the course of the mortgage, leaving the landlord with a more valuable asset. According to the U.S. Census Bureau, real estate has consistently increased in value from 1940 to 2006, then proceeded to dip and rebound from 2008 to 2010 and has been increasing overall.

There are, of course, blemishes on the face of what seems like an ideal investment. You can end up with a bad tenant who damages the property or, worse still, end up having no tenant at all. This leaves you with a negative monthly cash flow, meaning that you might have to scramble to cover your mortgage payments. There is also the matter of finding the right property. You will want to pick an area where vacancy rates are low and choose a place that people will want to rent.

Perhaps the biggest difference between a rental property and other investments is the amount of time and work you have to devote to maintaining your investment.

When you buy a stock, it simply sits in your brokerage account and, hopefully, increases in value. If you invest in a rental property, there are many responsibilities that come along with being a landlord. When the furnace stops working in the middle of the night, it's you who gets the phone call. If you don't mind handyman work, this may not bother you; otherwise, a professional property manager would be glad to take the problem off your hands, for a price, of course.