Bangalore is the IT capital of India. The real estate sector a decade ago sold apartments in crores. One did not get amazed if there was an advertisement promoting an apartment with a free Mercedes Benz a decade ago in the IT capital. But you don’t get to see those advertisements anymore so frequently. The days have changed with the affordable sector housing booming in the last decade.
There is no dearth of the migrants to Bangalore and with the government supporting the buyers of the affordable housing sector, the demand has increased fourfold. Government’s support is evident with measures like lower GST rates, affordable housing funds, longer tenures of loans under the Credit Linked Subsidy Schemes (CLSS) of the Pradhan Mantri Awas Yojana (PMAY) and extended income tax benefits to homes bought up to a carpet area of 645 sq. ft. which has also been the reason for added affordability in the hands of a considerable amount of population.
Although there was a considerable demand for the mid segment and luxury homes in Bangalore, the affordable segment has overtaken the other two segments and has become the center of focus for the real estate sector. The other tier I cities like Mumbai, Chennai, Delhi-NCR, Kolkata, Ahmedabad, and others also followed suit and the demand for affordable housing stood at 18% during the last quarter. Not only the small builders but the large real estate players also have entered into the affordable segment in different metros of India. The realtors are very positive about the prospects of the affordable housing in India with the majority speculating that this segment would grow in leaps and bounds as the economy of India is on the verge of high growth with a lot of purchasing power in the hands of young people.
There are many buyers in the affordable segment, opines the realtors but the experts argue that the big builders would succeed in this segment of the realty market. The reason is the economies of scale. For the builders to yield profit out of building affordable homes, they have to build in mass scale which requires a huge investment. Not only that, the technology they use and the materials they buy can only be of quality if they are bought in bulk and in high volumes. Over and above that the trends suggest that although the apartments are called affordable and are low cost, the amenities provided should be at par with even the luxury projects. This means the apartments can be smaller in size but the projects have amenities like swimming pool, children’s play area, open spaces, landscaped gardens, and other facilities. This requires more land area which calls for more investment from the builder. This is where the builders of the affordable segment actually save cost. The land area is also smaller in size and usually, they are far away from urban areas.
With time the affordable projects have also needed to be competitive and this has made many builders providing amenities like supermarkets, schools and other infrastructural facilities inside the campus itself which are also opening new avenues of business too. Nevertheless these call for huge infrastructural investment which brings down the cost in the long run but becomes nearly impossible for small builders. This is precisely the reason why with the increased demand for the affordable segment, bigger builders have emerged in this space in all the cities of India. The experts opine that as real estate and the housing market has become highly competitive and with that, the affordable segment calls for more investment which makes this sector not so lucrative for the small and even medium-sized builders. Most of the builders undertake the affordable projects in joint ventures which at least saves them the cost of land or alternatively they build projects far away from the city.
The affordable projects also have differences in the materials used opines the seasoned realtors. The doors, sanitary wares, and the flooring are relatively made of cheaper materials than the luxury projects. Although this does not have a bearing on the durability of the homes there are variations in materials used like small vitrified tiles are used in place of larger tiles in kitchens and other places as they save cost.
Bangalore is one of the cities with the most number of startups and IT companies with a large number of workforce looking for affordable housing. With a large market share looking for cheaper homes, the realty sector is all set to cater to this segment of the market. The areas with affordable homes are mostly at the boundaries of the city limits. They scatter at all the four corners of the IT capital. These places include Yeshwantpur and Peenya at the West, Devenahalli at the North, Sarjapur road at the South East and Mysore road and Attibele in the South. Many large builders are seen to construct large projects at these places and these areas are under rapid development. As the city limits are expanding with development in the infrastructure, more and more chunks of the population are seen to settle in these areas. With the rapid expansion of industry, the Bangalore economy is poised to usher in new human capital from all corners of the country and these affordable housing projects are catering to these population.
The Bottom-line of Affordable Housing
The economy of India is growing faster than ever before with the largest count of young population than ever. The B and C-class cities are under rapid expansion with rapid migration from rural to urban areas. Not only the A-one cities and major metros but the spurt of affordable housing is also a substitute for renting as rapid industrialization causes a surge in rental prices. It can be foretold that this sector can stand out to be an affordable alternative to the housing needs of the migrant population and is due to increase owing to the surge in demand of the middle-class population. DSMAX Properties will make this happen, Affordable Houses/Flats in Bangalore for all as the joy of giving