Low Cost real estate in Bangalore gets boost

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The year 2017, brings good news for the poor urban residents of the Bangalore city. The skyrocketing price of the real estate property in Bangalore has created a great blockade for the poor buyers. However, the recent announcement made by Honorable Prime Minister would materialize the remote dream of many people who aim to own their own home. Now the lower income group people can own home at a distance of 30 kilometer from Vidhana Soudha at very affordable price of Rs. 12 Lacs. This was revealed by the Prime Minister in this speech that he delivered on the eve of New Year. Under the Prime Minister Awas Yojana, the center has stated that the interest subvention of 3% and 4% for housing loans of up to Rs 12 lakhs and Rs. Lakhs respectively.

Some of the prominent features of the Prime Minister Awas Yojana that would affect the real estate projects in Bangalore are as follows-

Lower EMIs- The recent policy announced by the Prime Minister has effectively made the housing EMI cheque smaller and attractive for the affordable housing segment. The current EMI stand somewhere around Rs.6, 000-Rs.7, 000 per month which would be pegged at Rs. 3,000- Rs.4, 000 for a period of 15 years. This will give a major boost to the low income housing scheme in the outskirt areas of the Bangalore.

The eligible people under the Prime Minister Awas Yojana, will get an interest subsidy from the lending banks. More than 100 housing finance companies have signed a memorandum of understanding with the National Housing Bank. The areas like Attibele, Rajankunte and Hoskote which are approximately 35-40 kilometer away from Bangalore central business district are surfacing as the major hubs for value and affordable housing segment. The New Year has brought a double bonanza to the dwellers of Bangalore. The announcements like Prime Minister Awas Yojana and demonetization will surely bring a ray of hope for many people who are looking for a Real estate in Bangalore.

Post Demonetization story- Post demonetization the affordable housing segment will get even more attractive. The prices of the apartments in Bangalore are expected to fall by 30% in the coming months especially in the far flung areas of Bangalore city. The areas where the transactions were carried out in cash will especially feel the pain. The long terms effects of demonetization will shrink the average loan size to Rs. 10 - Rs 12 lakhs.