The cost of ‘affordable housing’ in Bengaluru has now gone up by 20 per cent, making home purchases a costly affair for the salaried middle class and economically weaker sections (EWS) of society.
What was once an affordable Rs 30-lakh flat, will now cost Rs 40-60 lakh or even more. This jump of nearly Rs 20-30 lakh, in the price of apartments that have been classified as affordable, is due to the rise in real estate index, raw materials and manpower costs, say experts.
Suresh Hari, Secretary, Confederation of Real Estate Developers Association of India (Credai), Bengaluru, said: “The cost of production has only been going up in the last three years, which is why we are forced to increase the price per housing unit. Also, there is a distinction we need to make between the salaried middle class and the EW sections. They belong to two different price ranges. While the former belongs to the Rs 40-60 lakh category, the latter belongs to the Rs 30 lakh and below category. And within the affordable sector, the demand for both is even.”
Apartments priced between Rs 40-60 lakh is typically purchased by double-income families. “Usually instalments have to be paid every month depending on the extent of loan taken. That is why you see both husband and wife working - what we call the double-income family. This section has grown very strongly in the IT sector. With good salaries, both are able to see off the loan. The developers too know their target groups well and build apartments keeping their aesthetics and affordability in mind,” says Hari.
The next price range is from Rs 60 lakh to Rs 85 lakh. There are plenty of families who are able to afford flats costing between Rs 60-lakh and Rs 80 lakh and many others who can afford flats between Rs 80 lakh-1 crore. This segment is basically purchased by higher executive class of workers, he added.
A range of apartments are being built along the periphery of the City - just off the Ring Road in places such as Whitefield, Marathhalli, Horamavu, Sarjapura and Electronic city - which is the IT corridor. This is where the salaried middle class buy their homes. The EW Sections purchase homes in Attibele, Hosur Road, Jigani and Suryanagar, off Anekal.
A resident of Marathhalli, Paramesh Krishna says that because he and his wife both work, they could afford a flat at Marathhalli. “We have to pay EMI amounting to Rs 25,000 a month, which is heavy. So both of us have to work. One person working would put the person under pressure. By God’s grace, we have been able to manage well so far. I pray things go the same way in the remaining period of payment.”
Published 23 September 2015, 19:16 IST