Affordable Homes Constitute Half The Unsold Inventory In Bengaluru: PropTiger Data
With the remarkable appreciation of property values in India’s information capital in the past, property investment may be considered to have become unaffordable for the common man in Bengaluru that is both, a commercial and residential hub. However, the city’s impressive growth in the past notwithstanding, it still has ample options in the ready-to-move-in affordable homes segment, according to PropTiger.com data.
Till July 2019, the city had an unsold inventory of over 78,000 units, numbers show. Half of these homes, nearly 39,000 homes, are units priced at Rs 45 lakh or less. As the government chases its ‘Housing-for-All-by-2022’ target, it has incentivised property purchases by way of offering higher tax deductions and lower GST. While the tax deduction limit on home loan interest taken against units priced at Rs 45 lakh or below has been increased to Rs 3.5 lakh in this year’s budget, the GST rate on affordable housing has also been brought down to one per cent.
In H1 2019, 12,322 new units were launched while 18,841 units were sold in the Bengaluru property market. Affordable housing units accounted for more than 55 per cent in launch as well as sales numbers during the period, data show. Nearly 23,000 new units were also delivered in H1. Of these, a total of 5,388 homes were affordable units.
“Bengaluru’s commercial growth makes it a destination of choice among Indians and NRIs. This is precisely why capital values in India’s Silicon Valley have appreciated remarkably in the past. Builders, however, are acutely aware of the demand coming from the affordable housing segment and are launching projects to cater to this segment,” says Dhruv Agarwala, Group CEO, Elara Technologies.
Varthur, Whitefield Hope Farm Junction, Jakkur, Electronic City Phase and Yelahanka, are localities where the majority of the unsold units are concentrated. Property buyers will find the highest number of options in 2BHK configurations, followed by 3BHK and 1BHK homes.
| PRICE CHECK | ||
| Locality | Average price* (in Rs per square foot) | Livability score ** |
| Varthur | 4,848 | 7.5 |
| Whitefield Hope Farm Junction | 5,404 | 8.3 |
| Jakkur | 5,200 | 8.1 |
| Electronic City Phase 1 | 3,938 | 7.8 |
| Electronic City Phase 2 | 4,200 | NA |
| Yelahanka | 5,032 | 7.8 |
| Jigani | 3,827 | 6.8 |
| KR Puram | 4,279 | 7.6 |
| Talaghattapura | 5,582 | 7.5 |
| Devanahalli | 4,504 | 6.2 |
| *As of June 2019 | ||
| **On a scale of 10 | ||
| Note: Average rate of property in Bengaluru is Rs 5,200 per square foot. | ||
| Source: PropTiger.com | ||