Bangalore the most affordable housing market in the nation

Q: I heard that Bangalore has become of the affordable housing market? How come as I have seen Bangalore offering only luxury segment projects?

Shazad Laskar, Bangalore

13th August 2013

Residential Project Review in Bangalore

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affordable housing market

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Bangalore Residential Project Review Residential Project Review in Bangalore

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While Grade B developers have become active in the realty market of the city, Grade A developers suffer from delays in getting approval for the planning process from numerous government agencies. According to market reports, nearly 400 builders in the Grade B category are expected to launch new projects in all the micro-markets, together with Grade C developers.

Indrajit Kaul, Bangalore

1st January 2014

Comment

Fall in the demand pattern has further compelled the real estate developers to go for 1BHK at 450m sq ft, in the affordable home section. Furthermore, builders intend to reduce the unit’s size in the new projects due to low demand. Private equity investment funds are also looking for investment in locations where promotion is not a hard nut to crack.

Nakul Sachdev, Bangalore

1st January 2014

Comment

Any idea about how is the demand for other real estate segments in Bangalore?

Shazad Laskar, Bangalore

1st January 2014

For luxury units, such as villas and row houses, the market has been steady since the demand in this category is mainly driven by NRIs, HNIs and corporate executives. Proliferation of major international schools and an influx of foreign expatriates has turned villa projects in the suburbs a good investment opportunity for the investors.

Indrajit Kaul, Bangalore

1st January 2014

For developers in and around Bangalore, there is a common thread that runs through their plans-affordable housing. However, the concept is heading for a fall in the city, since Bangalore is laced with an oversupply of units in 2013. Although units in the price bracket Rs 40- Rs 50 lakh may have a lot of takers in the different micro-markets, demand is not picking up.

Darshan Shetty, Bangalore

1st January 2014

Comment

I heard that there is a fall in demand for affordable stock. Is it true?

Shazad Laskar, Bangalore

1st January 2014

One of the primary reasons for deterred affordable housing stock movement is-the location. Being away from city centers, such locations increase the commuting time incessantly. In addition to it, the rental prospects are also not appealing enough for investors. According to property consultants, poor connectivity levels and lack of adequate infrastructure are the two primary reasons that has contributed to low rentals.

James, Bangalore

1st January 2014

Is this going to effect on real estate in Bangalore?

Shazad Laskar, Bangalore

13th August 2013

Comment

According to JLL, over 9000 luxury units are likely to be launched in Bangalore in the next few years. In a move that bodes well to meet the rising demand of the home buyers, the developers will be launching a slew of premium housing units in the city.

Rameswari, Bangalore

13th August 2013

According to property consultants, buying of property in Bangalore is mainly active among the end users. To add to it, since the ratio of investors to end-users is thrown off the balance, it has triggered a steady absorption rate.

Indrajit Kaul, Bangalore

13th August 2013

Comment

Market survey reports further testifies the fact the property market in Bangalore is relatively better than Mumbai, NCR and Hyderabad and has been invoking interest of the investors from various cities and even outside the country. This has significantly contributed to stabilizing the residential market in the city over the due course.

Darshan Shetty, Bangalore

13th August 2013

What are the key demand drivers which has pertained to the residential market of the city?

Shazad Laskar, Bangalore

13th August 2013

The key demand drivers which has pertained to the residential market of the city are affordability, well-disposed demographics, affordability and preferred location by the IT/ITes working populace.

Indrajit Kaul, Bangalore

13th August 2013

The Silicon Valley of India, Bangalore, has been gearing for an upswing and has eventually ranked itself among the top six most affordable residential markets of the nation. Pitching in with 33% of Indian IT Exports, the city is home to more than 800000 IT/ITes professionals, on the hook for about 55% of the overall demand of the organized realty market.

Darshan Shetty, Bangalore

13th August 2013

Comment

According to property consultants, Bangalore is categorized as the most affordable housing market in the country among NCR, Hyderabad, Mumbai and Pune. Study by Knight Frank further corroborates that Bangalore, with nearly 77% of the total units under construction that will be priced below Rs 50 lakh, bagged the top most position in the affordable segment, followed by Chennai.

Rameswari, Bangalore

13th August 2013