Affordable Housing in Bangalore: Myth or Reality

Bangalore : Most of the Indians believe that property is the ultimate investment. Because the house prices are heading only in one way up? For example, Prices in Bangalore have trebled in a few years. Bangalore is the fastest growing silicon city of India from past few decades. An IT industry has been the major growth driver for real estate development in Bangalore city. Being as an IT hub of India, Bangalore has a multicultural population with full fledged educational institutions, good social infrastructure and physical infrastructure. There is a continuous steady growth in Bangalore from 2013 when compared to other cities in India like Chennai, Delhi and Mumbai etc

Affordable Housing drives demand in Bangalore city. Today, the affordable segment emerged as the most vibrant and active sector in Indian Realty. Various factors have contributed for this growth, such as the availability of financing options, rapid urbanization, supply side, it is the entry level of various real estate developers, financial options, growing trend of nuclear families and the rising income level has increased the demand of Affordable housing in Bangalore.

According to the Indian Affordable Housing market Analysis report, the demand for Affordable Housing is growing everywhere in Bangalore and we can see the constant demand on the outskirts. The majority of the demand mostly comes from low income group and price sensitive buyers. The planned metro rail and peripheral ring road is also another reason for increased demand on the outskirts. Therefore many affordable projects are developed in the suburbs of Bangalore and these areas offer large land parcels at lower acquision costs. The areas which have witnessed the highest demand are Hosur road, Mysore Road and kanakapura road etc

VBHC Attibele and Patel Neo Town in Bangalore south, Provident Sun worth and VBHC Kengeri in Bangalore west and Provident Welworth and Sovereign Lake front in Bangalore North are the most prominent and notable affordable housing projects in Bangalore city. These projects have seen a significant growth in capital values because of the increase in land acquision and construction. The housing units are made affordable by condensed unit sizes, conciliation of civic amenities and other USPs. The demand is a bit lower in East Bangalore when compared to other micro markets.

Major residential developers like Tata Housing, Jannaadhar constructions, Godrej Properties, CSC Builders, Ashoka Group, Brigade Group are also planning to enter the affordable Housing segment in Bangalore. This Affordable housing can prove a huge platform for the market players to grow as there is a significant shortage for low cost housing.