Pool of MIGs Entice Many Real Estate Developers to Create Affordable Housing Options in Bangalore
The steady market in the city has lured many white collared professionals to invest in the market- however the skyrocketing prices are pushing many to look for modest alternatives that offer generous living spaces at economical prices.Real estate developers are cashing on the growing demand and are offering new flats for sale in Bangalore that range from being economical to uber luxurious.
Published on: Mar 4, 2016
Transcripts - Pool of MIGs Entice Many Real Estate Developers to Create Affordable Housing Options in Bangalore
Pool of MIGs Entice Many Real Estate Developers
to Create Affordable Housing Options in
Cited to be one of the most livable city in the country followed by Chennai, Mumbai
and Delhi- Bangalore heads the chart. The high standards of living conditions,
growing physical infrastructure and the ever expanding IT sector are some of the
factors that are fuelling Bangalore’s realty market. And with the city attracting a pool
of migrant population thanks to the employment opportunities- the city seems to
have become a residential hotspot that is brimming with construction activities. Real
estate developers are cashing on the growing demand and are offering new flats for
sale in Bangalore that range from being economical to uber luxurious.
The steady market in the city has lured many white collared professionals to invest in
the market- however the skyrocketing prices are pushing many to look for modest
alternatives that offer generous living spaces at economical prices. And so an array
of upcoming apartments in Bangalore are currently targeting the MIGs (Middle
Income Group Individuals). Both local and reputed property developers are
purchasing land in large parcels only to develop affordable housing options.
According to the current market trends, affordable homes here are cited to hover
over a price bracket of Rs 25 lakhs and Rs 45 lakhs.
With 23 percent of supply driving this section of the realty sector- real estate
developers are creating an array of township projects offering 2 BHK homes that
spread over 900 square feet. Some of the active residential pockets that offer
economical homes are Sarjapur Road, Whitefield, Magadi Road, Electronic City,
Mysore Road and Kanakapura. Recent media reports have suggest that Whitefield
has over 40 upcoming apartments in Bangalore. With there being an inherit demand
for 2 BHK homes, apartments in these vicinities are likely to cost anywhere between
Rs 2,550 and Rs 6,400 per square, depending on the specifications and facilities
offered by the builder.
The modest budgets are also luring many investors to buy various inventories for
investment purpose. The high ROI (Return on Investment) and the generous rental
yields are attracting many local second time home buyers to invest here. According
to recent market trends, capital values of new flats for sale in Bangalore especially in
areas like Whitefield, Electronic City and Kanakapura Road have appreciated over
73%, 10% and 13% respectively.
The high rental returns too is playing a pivotal role in flourishing the realty sector of
the city. Home buyers are purchasing homes only to rent them out on a later date.
Semi and fully furnished homes near IT hubs like Whitefield and Electronic City are
racking in high returns, while homes near Magadi Road and Sarjapur are cited to be
most preferred by families thanks to their growing social infrastructure. A 2 BHK
home in Electronic City that is purchased for an average of Rs 45 lakhs is capable of
generating rental returns anywhere between Rs 13,300 and Rs 26,000 per month.
Similarly a 2 BHK apartment in Sarjapur Road that costs Rs 36 lakhs generates
rental yields between Rs 18,000 and Rs 23,000 per month depending if the homes
are semi or fully furnished.