Affordable Housing in Bangalore!

Affordable Housing in Bangalore is of utmost importance to the Builders in the coming days as there are numerous migrants from different states coming down to the city for making their living. This is creating a lot of demand for affordable housing in the real estate sector.

All the Tier-A builders in the market these days themselves are focused on building top-notch houses that even the middle-class people can consider purchasing! Although, it isn’t an easy task to give all the luxury features in a budgeted condo... The builders have taken it upon themselves as a challenge to accomplish it! 

There are new people coming into Bangalore every day and after working for just a year look forward to buying an apartment for their own safe haven. These days everybody who once had a good cash savings prefers to go ahead and make an investment in the real estate field. Now, this is becoming possible even for the Middle-class families whose incomes are extremely reasonable. 

Let’s consider an example... Mr. Arnab has an income of 60,000/- a month and lives with his parents and wife and also a Kid. He has been working for about 6 years now and has never made an investment in Real estate before... But is thinking about it now as he has a good cash savings and has to give a safe and secure environment to his family! So, having a budget of 60 lacs starts his hunt for buying a house! He finally comes across a property called Brigade El dorado. Where... A 3BHK costs him about 45 lacs that is without calculating the registration costs and 5%GST! He then approaches them and finds out he is eligible for another deduction of 2.67 lacs under the PMAY scheme. Keeping in mind that the Brigade El Dorado is a magnificent project that has ALL Top-Notch facilities you can think of! For him getting a house that gives you all of this at a mere 42 lacs is like a dream come true! These Big projects have helped individuals actually get out their money’s worth! 

Previously, in the market... At this rate you had the option of buying a property only with local builders! Also, there are only a limited amount of local builders who actually give quality apartments the rest of them are just mainly PROFIT ORIENTED. 

A few apartments that even the folks from the middle class can purchase are: 

1.     SHRIRAM 107 at 28 lacs*

2.     Godrej 24 at 37 lacs*

3.     Assetz Here and Now at 34 lacs*

4.     Orchid Piccadilly at 52 lacs*

5.     SHRIRAM Dil chahta hai dobara at 24 lacs*. 

There are many other properties as well that offer a brilliant price with unreal amenities with an apartment that is worth going through! As we know, millennials are the new face of Indian realty. Quality houses that are sensibly priced, have over the years gained prominence amongst them. This is up to the extent that the generation is looking forward to fulfilling their aspirations of purchasing a home sooner than expected. Compact yet quality living is one of the recent trends that is widely accepted by the first-time homebuyers. The demand for affordable residential units, is in turn, driving the growth of this particular segment.

As per an industry report, affordable housing has witnessed a growth of 22 percent in the sales velocity during 2018. Unfortunately, the supply is not at par with the demand existing in this segment. The term ‘affordable’ as a buzzword is not even in line with the Government’s definition of affordable housing. However, the residential markets such as Bangalore, Chennai, Pune, Hyderabad and Kolkata have witnessed an exponential growth, which is only corroborated by a recent report which states that people’s propensity to spend on housing is likely to improve over the next three years across the cities. The Budget announcement towards the affordable housing segment gave a ray of hope to those who were dreaming to own homes post the reduction in GST rates. The escalating demand for chic and affordable housing is expanding and is expected to impact the overall sales in the residential market.

Post the introduction of several regulations, the realty sector has now become more organised and transparent. As a result, the homebuyers have started trusting the players in the market. Affordable segment has successfully garnered attention from the homebuyers and will further drive growth in the residential market. The current governmental reforms with regards to real estate and the initiatives towards providing housing to all will also provide a boost to the realty sector on a large scale.

India has seen a rise in the affordable housing sector, which over the previous 3-4 years has dominated the residential segment. In the past five years, the average size of apartments in most large cities has decreased. Realtors target a large segment of buyers, particularly millennials who prefer affordable homes in well-connected areas over large apartments in distant areas. The millennials inclination towards buying a home is also driven by the Pradhan Mantri Awas Yojana (PMAY) scheme and due to fewer liabilities on the home buyers. Developers also have been venturing into the segment because of the demand surge and to avail income tax exemption by the government under PMAY scheme.  

Bangalore we all know is the 5th largest city of our country with a population of 9milllion + it is preferred as one of the best-sought places for investment destinations. Popularly known as Silicon Valley the city has witnessed the fastest growing pattern in some years. The crown fetches one more feather of being an IT Hub of India it is a metropolitan city which is experiencing a robust of real estate development and trends. People who are an investor and who want to invest in real estate always want to be updated and keep finding the new developing and current market trends in the areas. Being such a metropolitan city, the job market has also developed tremendously. The city has premier educational institutes, hospitals, shopping malls, and many other infrastructural amenities. If we talk specifically about the realty sector Bangalore is dominated by residential and commercial projects both. The demand for 2BHK, 3BHK, penthouses and villas is high whereas affordable housing which has equipped the market right now has added the value to living. The biggies of real estate are coming up with highly advanced projects which are providing the buyers with more and more options.

India's real estate landscape is undergoing significant transformation, driven by rapid economic expansion and the burgeoning growth of urban centers such as Mumbai, Delhi, and Bangalore. This economic surge has resulted in an extraordinary demand for both residential and commercial properties, creating a fertile ground for investment. The adoption of cutting-edge technologies like virtual reality (VR) and augmented reality (AR) is further accelerating this growth. These innovations have fundamentally changed how properties are marketed and experienced, offering potential buyers immersive, virtual tours that provide a comprehensive understanding of prospective investments. Despite occasional setbacks from regulatory changes and market fluctuations, the resilience of the Indian real estate market remains evident. The vast population, combined with ongoing urbanization, ensures a continuous demand for housing and commercial spaces. Government initiatives, such as "Housing for All" and smart city developments, are boosting confidence in the market's long-term potential. These initiatives not only increase demand but also present opportunities for developers and investors to engage in large-scale infrastructure projects. The introduction of real estate investment trusts (REITs) has also democratized the commercial real estate market. Previously accessible only to institutional investors, REITs now allow retail investors to diversify their portfolios and benefit from the sector's growth. Economic Expansion and Urban Growth India's economic growth has been a key driver of urban expansion. Major cities like Mumbai, Delhi, and Bangalore have become bustling economic hubs, attracting people seeking better job opportunities and living conditions. This influx drives demand for residential properties while also spurring the development of commercial spaces. The synergy between economic growth and urbanization creates a robust foundation for the real estate sector, ensuring a steady flow of investment opportunities. Technological Advancements The real estate sector has embraced cutting-edge technologies such as VR and AR, revolutionizing property marketing and visualization. Potential buyers can now experience properties through immersive virtual tours, gaining a more profound understanding of their investments. These technologies not only enhance the buying experience but also allow real estate marketers to reach a broader audience, increasing the sector's appeal. Resilience Amidst Challenges The Indian real estate market has demonstrated remarkable resilience despite challenges such as regulatory changes and market fluctuations. The regulatory environment, though complex, is designed to enhance transparency and protect buyers' interests. While these regulations can create short-term uncertainties, they ultimately contribute to a more stable and trustworthy market. Market fluctuations, driven by economic cycles, are a natural part of the investment landscape. The Indian real estate market's ability to recover from downturns highlights its resilience and long-term growth potential. Population Growth and Urbanization India's large and growing population, coupled with urbanization trends, ensures a continuous demand for housing and commercial properties. As people migrate to urban areas seeking better opportunities, the need for residential and commercial spaces increases. This ongoing demand creates opportunities for developers and investors across various market segments, from affordable housing to luxury residences and commercial properties. Government Initiatives and Infrastructure Development Government initiatives like "Housing for All" and the development of smart cities are key drivers of the real estate market's long-term potential. "Housing for All" aims to provide affordable housing to all citizens, driving the construction of millions of new homes and stimulating demand. Smart city projects focus on creating urban areas with modern infrastructure, sustainable living solutions, and advanced technologies. These initiatives attract both domestic and international investors, eager to capitalize on India's evolving infrastructure landscape. Real Estate Investment Trusts (REITs) The introduction of REITs has opened the commercial real estate market to retail investors, previously dominated by institutional investors. REITs allow individuals to invest in income-generating real estate assets without owning or managing properties directly. This democratization of real estate investment offers new opportunities for portfolio diversification and income generation. REITs, traded on stock exchanges, provide liquidity and regular income through dividends, making them an attractive investment option. Challenges and Future Prospects While the Indian real estate market faces challenges such as regulatory complexities and market fluctuations, its dynamism, supported by technological advancements and favorable government policies, underscores its resilience and attractiveness. Regulatory measures, though challenging, aim to streamline the sector, enhance transparency, and protect consumers. These regulations contribute to the market's long-term stability and credibility. Looking forward, the Indian real estate sector is poised for continued growth, driven by urbanization, technological integration, and supportive government policies. The focus on affordable housing, smart city initiatives, and the growth of REITs will attract more investors and developers. Technological advancements will further enhance real estate marketing, property management, and investment strategies, increasing the sector's efficiency and appeal. In conclusion, the Indian real estate market offers a blend of opportunities and challenges, making it a compelling investment arena. The dynamic interaction of economic growth, technological advancements, and supportive government policies creates a resilient and attractive investment landscape. For those seeking long-term growth and diversification, the Indian real estate market presents promising prospects, underpinned by the nation's expanding economy and urban development.