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
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.
"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.
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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.
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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.
