Affordable housing: Bengaluru's ₹50 lakh homes now worth ₹2 crore; ₹1.5–3 crore is the new sweet spot, says CREDAI chief

CREDAI Bengaluru president Zayd Noaman highlights shifting affordability benchmarks and the tech industry's key role in housing demand in the IT Capital

Published on: May 14, 2025, 09:56:16 IST

By Souptik Datta

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The definition of affordable housing has evolved, especially in Bengaluru, where a ₹50 lakh house from 10 years ago can now cost ₹2 crore due to inflation. Homes priced between ₹1.5 crore and ₹3 crore are now considered the sweet spot for volume and sales, Zayd Noaman, president, CREDAI Bengaluru, told HT.com.

Homes priced between ₹1.5 crore and ₹3 crore are now considered the sweet spot for volume and sales, Zayd Noaman, president, CREDAI Bengaluru, told HT.com. (CREDAI Bengaluru)

"Due to inflation, a ₹50 lakh home a decade ago could cost ₹2 crore now in Bengaluru. Salaries have increased, and the ₹1.5–3 crore range is now the sweet spot in terms of volume and sales in cities like Bengaluru today," Noaman said.

Noaman noted that over the past two years, Bengaluru has seen significant growth in both volume and property prices. This surge in capital values is driven by the city’s strong fundamentals, including a robust tech ecosystem, quality education, and a deep talent pool.

Also Read: Credai Bengaluru president advocates for Mumbai-style redevelopment to tackle land challenges

Land in the city centre is costly, making it difficult for residential acquisition

Noaman said that within the city centre, land is both scarce and costly, making it hard to acquire for residential use. For housing projects in prime zones to make economic sense, he said the development has to be of a special grade to justify the rent or sale price.

"Improved infrastructure can pave the way for larger township developments on the outskirts of Bengaluru, but better connectivity is key to making them viable. For people to consider moving further out from the city centre, the government needs to prioritize expanding metro connectivity and improving road access," he said.

Also Read: In Bengaluru, drones now deliver groceries and medicines to residents in under 10 minutes

Outer Bengaluru holds development potential amid central area saturation

On Bengaluru’s real estate potential, Noaman said that the city’s radial layout leaves ample agricultural land on the outskirts.

“While central areas are saturated with limited and costly land parcels, the outer zones still offer opportunities for large-scale development—provided the infrastructure, especially metro and road connectivity, is improved to make these areas more livable,” he said.

However, Noaman believes that the city is not yet oversaturated in terms of real estate demand, but property prices have increased significantly.

"Today, the average ticket size ranges between ₹3–4 crore, with homes in areas like Whitefield typically priced around ₹2.3–3 crore. As a result, buyers are taking more time to make purchase decisions. In 2025, housing price growth in the city is expected to be in line with or slightly higher than average inflation," he added.

ABOUT THE AUTHOR
Souptik Datta
Souptik Datta is a deputy chief content producer at Hindustan Times Digital, where he reports on southern India with a focus on real estate, urban infrastructure and environmental urban issues. His coverage tracks the intersection of policy, capital flows, regulation and sustainability, examining how these forces shape housing markets, commercial real estate and large-scale infrastructure development across rapidly transforming cities. He also closely tracks civic issues affecting urban residents, including property taxation, planning approvals, public transport expansion, water stress, waste management and the governance challenges that influence everyday life in India’s metros. Souptik’s reporting is driven by a strong interest in accountability, consumer rights and the lived realities of homebuyers and investors navigating volatile pricing cycles, regulatory changes and project delivery risks. He frequently analyses project launches, land monetisation strategies, planning frameworks, RERA-related developments and the broader implications of infrastructure investments on emerging growth corridors. His work blends on-ground reporting with data-backed analysis and long-form explainers aimed at demystifying complex real estate and infrastructure developments for readers. He is an alumnus of the Indian Institute of Journalism and New Media. Before joining Hindustan Times Digital, Souptik was associated with Moneycontrol at Network 18, where he covered real estate, infrastructure and allied sectors, producing market insights, policy-led stories and in-depth features. Outside the newsroom, Souptik is an avid solo traveller and documentary enthusiast, exploring diverse regions and visually documenting unique narratives through film and photography. In his early career, Souptik also freelanced as a documentary photographer, independently working on visual storytelling projects that captured grassroots narratives, urban change and everyday life. He can be reached at souptik.datta@htdigital.in.Read More

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