Latest news with #CredaiBengaluru
Hindustan Times
14-05-2025
- Business
- Hindustan Times
Affordable housing: Bengaluru's ₹50 lakh homes now worth ₹2 crore; ₹1.5–3 crore is the new sweet spot, says CREDAI chief
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 "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 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 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.
Hindustan Times
14-05-2025
- Business
- Hindustan Times
Rising real estate prices: Netizens say homeownership is now a dream for the top 5%
With property prices soaring across Tier I cities, netizens say homeownership in India is increasingly becoming a goal attainable only for the top 5% of high-net-worth families. As prices rise faster than salary growth, prospective buyers on Reddit argue that waiting for a price correction may be unrealistic. Instead of hoping for a market dip, they suggest focusing on boosting purchasing power. "Is (home ownership) meant for the top 5% net worth families. It is not meant for every Indian, whether you like it or not. If you can't afford a property today, you are unlikely to afford it tomorrow just by waiting for prices to fall," a post on social media platform Reddit pointed out. 'You should focus on improving your purchasing power instead of waiting and hoping,' the post said. Also Read: Credai Bengaluru president advocates for Mumbai-style redevelopment to tackle land challenges Some of the Redditors point out that much of the challenge comes from focusing only on the top 10–25% of localities—areas that are naturally more expensive. "These prime zones are popular for good reasons, such as their closeness to major workplaces, better safety, and stronger social infrastructure," one of the Redditors said. Redditors said that in most developed countries, housing affordability is often managed through well-planned suburbs and satellite cities that offer solid infrastructure and connectivity. "If a family can't afford the city centre, they move further out to neighbourhoods that are still livable, safe, and well-served. For example, in cities like New York or London, moving from Manhattan to Brooklyn, or from central London to an eastern suburb, is common and practical—thanks to reliable public transport, good schools, and self-contained communities," the post said. However, the Redditor pointed out that in India, satellite cities and suburbs are often poorly connected, unsafe, and underdeveloped, leaving people with no choice but to stay in the city centre. Also Read: How will Greater Bengaluru Governance Bill impact the real estate sector in the IT capital? Despite concerns about real estate prices peaking in Tier I cities, property owners and investors remain confident about long-term value retention, especially in areas like Noida and Gurgaon. A seller who owned a 1,730 sq ft apartment in Sector 107, Noida, managed to sell it for over ₹2 crore after holding out for more than six months, starting from an initial offer of ₹1.95 crore. The seller believes the wait was worth it, seeing the final sale as proof that prices are holding firm. "There's no point in buying something for ₹2.5 crore if it doesn't meet basic expectations, but even in mid-tier localities, prices are firm and moving up. Prices will not fall, I waited for over six months to get to ₹2 crore from ₹1.95, but it's all worth it," the seller said.
Hindustan Times
06-05-2025
- Business
- Hindustan Times
Bengaluru real estate market's rental listing with ₹8 lakh deposit for a 3BHK sparks debate on social media
A Bengaluru apartment rental listing has sparked widespread debate on social media after a landlord posted his apartment for rent with a ₹ 8 lakh deposit and ₹ 1 lakh rent for a 3BHK. The apartment, located between Electronic City and Sarjapura Road towards the eastern IT corridor, sprawls 1400 sq ft. A Bengaluru apartment rental listing has sparked widespread debate on social media after a landlord posted his apartment for rent with a ₹ 8 lakh deposit and ₹ 1 lakh rent for a 3BHK. (Representational Image)(AI-generated image created by Gemini ) "Tell me this is a joke? ₹ 8 lakh deposit for fully furnished? And ₹ 5 lakh deposit for Semi-furnished? No regulations and the greed is just going up and up!" the Redditor wrote. Bengaluru, India's tech capital, has long been known for its steep rental deposit norms, often ranging from six to ten months' rent. While other metro cities have moved towards more tenant-friendly practices, Bengaluru's high deposit culture continues to raise eyebrows among new residents. As property prices surge and the city sees constant migration of working professionals, landlords cite security and investment protection as key reasons, experts say. Also Read: Credai Bengaluru president advocates for Mumbai-style redevelopment to tackle land challenges 'The owner is living under a rock' One of the Redditors wrote, "The owner is living under a rock. That's the only explanation for these unrealistic rents." In Bengaluru, landlords typically ask for a security deposit of 6–10 months of rent. So, for an apartment with a rent of ₹ 40,000 or more, the deposit will be ₹ 4.8 lakh. The high-security deposits have made it difficult for new employees moving to the city to rent apartments. High demand, limited supply allow landlords to set the rules Real estate experts say that due to the high demand for rental properties in Bengaluru, landlords are increasingly in a position to dictate terms. "In several parts of the city, the availability of affordable rental homes is limited, leading to intense competition among tenants. As a result, landlords are raising rental deposits—often demanding what they want without much room for negotiation," Kiran Kumar, vice president at Hanu Reddy Realty, said. One of the local brokers cited a recent case in Indiranagar, one of Bengaluru's upscale localities, where an apartment listed for ₹ 1.5 lakh per month came with a deposit demand of 10 months' rent, totalling ₹ 15 lakh. Defence Colony, just off the 100 Feet Road, is known for its spacious lanes and tree-lined streets. The area is home to top executives and developers, making it one of the city's most desirable residential pockets. In such high-demand locations, landlords have significant leverage in rental negotiations. Also Read: In Bengaluru, drones now deliver groceries and medicines to residents in under 10 minutes Deposit-free rentals are still in a nascent stage in Bengaluru Some experts suggest that introducing deposit-free rental schemes could ease the financial burden on tenants who struggle with large upfront security deposits. In such a model, tenants enter into a rental agreement supported by a third-party rental bond. Instead of paying a hefty deposit, the tenant pays a small, one-time fee to the bond provider. This bond acts as a financial safeguard for the landlord, covering potential risks such as unpaid rent, utility dues, early termination of the lease, or property damage. The approach offers greater flexibility for tenants while still protecting landlords against common rental defaults. 'Currently, one of the biggest hurdles is the limited availability of companies offering deposit-free rental models,' said Sunil Singh of Realty Corps. 'Even though there is growing interest from tenants, we often have to fall back on conventional rental agreements due to the lack of service providers.' He further noted that a lack of awareness is another key challenge. 'Many landlords, particularly those unfamiliar with digital processes, are sceptical. They often ask, 'What if I never receive the insurance payout?' This hesitation is holding back wider adoption of the model,' Singh explained.
Hindustan Times
06-05-2025
- Business
- Hindustan Times
Credai Bengaluru president advocates for Mumbai-style redevelopment to tackle land challenges
Amid rising land prices and difficulties in acquiring land in Bengaluru's city centre, the city could benefit from redevelopment policies similar to those in Mumbai. Credai is actively collaborating with policymakers and legislators to advocate for a redevelopment framework tailored to the IT capital, Zayd Noaman, president of Credai Bengaluru, said in an interview with "If Mumbai can successfully implement redevelopment, there's no reason Bengaluru can't follow suit," he said. Credai is actively engaging with policymakers and legislators to advocate for a redevelopment framework tailored to Bengaluru. "The process will take time, as it involves creating new laws and building public consensus, said Noaman. Also Read: Bengaluru's property registrations dip 21% amid E-khata implementation woes "Redevelopment can be a game-changer. Like Mumbai, Bengaluru has many 30–50-year-old buildings that can be redeveloped to unlock valuable land. This benefits not only developers and buyers but also the government by generating significant revenue," Noaman said. Most of the developable land in Bengaluru's city centre is either saturated or extremely expensive. 'Residential development here is challenging due to high land costs, and going forward, we expect more commercial or office projects in these areas,' he said. For residential projects in prime zones to make economic sense, Noaman said the development has to be of a special grade to justify the rent or sale price. "But if we don't begin now, we'll miss the opportunity for years to come. Our view is that if a city like Mumbai can implement redevelopment successfully, there is no reason Bengaluru can't follow suit," Noaman said. Also Read: Bengaluru's municipal corporation achieves 88% of property tax revenue target, issues 2.25 lakh e-Khatas Noaman said that currently, CREDAI has over 230 members in the Bengaluru chapter, and all stakeholders are actively investing in platforms and technologies that improve transparency and accessibility. "We're working to streamline land records, encourage blockchain adoption, and improve processes like e-Khata and title verification. Our goal is to promote sustainable, organised development—unplanned growth stresses urban infrastructure and hampers livability," he said. Noaman said that Credai Bengaluru is collaborating with the city's local municipal corporation, Bruhat Bengaluru Mahanagara Palike (BBMP), to streamline the e-khata system, particularly for large developers who need to process bulk applications. "This process goes beyond individual plot owners—it's about ensuring the timely issuance of e-khatas so that they can be seamlessly transferred to homebuyers during registration. To make this possible, we're closely collaborating with government departments to streamline the process. Our focus is also on simplifying RTC (Record of Rights, Tenancy, and Crops) and mutation procedures. Digitising these records will bring greater transparency and efficiency to the revenue system," he said. RTC is an official document that provides details about land ownership and tenancy. Noaman said that, being a complex undertaking, there will be disruptions in the beginning; however, the e-khata system is seeing steady progress. Noaman said that Credai Bengaluru is in discussions with the Bangalore Water Supply and Sewerage Board (BWSSB) to improve water usage efficiency during construction and in residential societies. "One of our proposals involves installing digital water meters in every apartment to help residents monitor their consumption. We also emphasize flood-resilient planning—developments must respect buffer zones and maintain stormwater drains. For example, Prestige has been working on upgrading the nalas to enhance water flow and reduce flood risk," he said. Speaking about real estate potential in the city, he pointed out that Bengaluru is a radial city with ample agricultural land in the peripheries. "While central areas are saturated with limited and expensive land parcels, outer zones still offer opportunities for large-scale development, provided infrastructure is in place. We need better metro and road connectivity to make these regions more livable," he said.
