Are Bangalore residential properties affordable for the middle class?

The middle class income group is always on the lookout for property with lower prices. In the market like the scenario in Bangalore, where career and jobs are constantly on the trembling waters, the demand for the affordable housing segment is much higher by the middle income group. Also as the banks and financial institutions constantly are offering special interest rates, the demand for these housing units have risen dramatically by this income group. Also, competitive and affordable prices offered by the real estate builders have also boosted the launch of more residential projects and properties in Bangalore.

In comparison to other metro cities, the real estate prices in the bustling city of Bangalore from reputed and good developers are much still lower and affordable. As such, this is considered as the best time to select and invest in a prospective property in Bangalore. The real estate developers are presently working on thin price margins and also the banks and financial institutions also have reduced their home loan interest rates to attract more buyers. As such, Bangalore has witnessed the launch of many affordable projects and also the demand of residential properties and projects in Koramangala by the middle income group. According to the survey, there is a demand of around 3.27 lakhs housing units by the middle income group. About 80% of the total demand of housing units falls in the Rs. 3-5 lakh regular income segment.

With these factors on board, the real estate developers have witnessed many property buyers and investors eagerly putting their money and cheques in affordable housing units and properties.  As such the developers have working hard to complete the projects and also launch many big projects in different parts of the city of Bangalore to meet the upsurge in demand. These projects contain around 1,000-1,200 units in each project. Majority of the urban families across Bangalore earn income than about Rs. 5 lakh annually. As such, their affordability for housing units is below Rs. 20 lakh in a unit. The demand from this middle income segment has raised from their income numbers and would stay on and in fact increase with time.

Banks and financial institutions also have a good role to play for the affordability factor of residential properties and new projects in Koramangala for middle income group. The banks offer attractive interest rates. Due to this, they have witnessed more than about 50% growth in housing loans in the Rs 20 lakh category.

For developers who are pitching in projects to meet the demand for affordable housing in Rs. 12-25 lakh price range, they need good land at reasonable prices for projects. The houses also would be of lesser sizes due to the low rates and won’t be high rise. Instead the housing units are spread horizontally and located mostly in the outskirts of Bangalore city. However, all projects would have good facilities and all the amenities a residential house should possess. When one says affordability for a middle income group person, it is defined by the given location comprising all elements like is house price, the income of the person, his/her spending as well as saving behaviour and other related demographic factors.