Revisiting Budget 2018 for Home Buyers- Why Focus is on Affordable Housing?


When the union budget was announced in early February this year, the contents clearly showed that it was for the benefit for buyers who were hoping to get affordable housing all across India. Many less income group of people live in the cities. They form a substantial segment which can no longer be ignored who are willing to spend for a decent roof over their heads. This is one impetus that has been noticed by real estate companies in Bangalore as the government budgets also tap their needs. They have announced projects which cater to this significant group of city dwellers. But does this cheap alternative benefit the end user? There are pros and cons that come to the mind.

Let’s sort out the meaning of the housing budget 2018 and if it is positive for the average Bangalore dweller who belongs to the lesser income group.  

What does the budget 2018 say?

As a home buyer, does it resonate with you?

Both real estate and infrastructure development go hand in hand when it comes to affordable dwellings. This means the expansion of metro lines, railway station upgrades, and additional public transport make the projects viable to a larger section of society. Recognising this is important for all real estate builders in Bangalore. The regional connectivity is soaring and allowing people to come forward and invest in new homes. As the budget focuses on this segment, the National Housing Bank has set up a dedicated fund. This helps to lend to people who may aspire to better living standards. It also aids in other areas like:

  1. Taxation- Deductions up to INR 40,000, annually will permit single individual buyers to have a more disposable income. As real estate continues to be a priority for low income group families, the funds can be diverted to acquiring a house.
  2. With improved infrastructure, the units are likely to have better selling points.
  3. Real estate companies in Bangalore and in other cities in India find this a viable scheme with saleable inventory. It also means their investments are not stuck for too long in any project.
  4. Budget flats have pros and cons to consider like location, connectivity and more than just basic amenities.
  5. The reputation of the builder counts as they have to adhere to the new government schemes and RERA regulations.

How is affordable housing is defined?

Pros and cons of choosing various builders

Small residential units which have necessary amenities constitute affordable housing.  They need to have a sizable kitchen, space for a living room and a bedroom. This also includes proper electrification, plumbing and maybe a gas connection. Unlike other housing schemes where some builders provide modular kitchens and some interiors, the affordable housing schemes do not have these facilities. Few reputed builders do offer common amenities like a garden, lobby and security guards to make space look habitable. As the facilities are just above the requirement of a roof over the head- some real estate companies in Bangalore offer budget homes in well-known localities.

So, what are the typical pros and cons that can help a buyer to invest in such homes?


  • Good value for money
  • Timely delivery of flats
  • More end users make the project feasible
  • Resale value is quick
  • Good areas with connectivity with public transports help the white-collared class


  • Some complexes may be located in remote areas making it difficult to link with markets, utilities, and transports
  • If the home is rented, the yield or income is lesser
  • Lack of luxury, amenities and space constraints for bigger families
  • Maintenance is left to residents once conveyances are given and the society is formed

On a positive note…

An appeal of a budget home lies in…

Bangalore is a large city and has many areas where real estate builders have different housing schemes for apartments and villas. When it comes to a budget home, due diligence by the home buyer is important. As a house hunter, know what the latest budget 2018 has in store for affordable housing.  Get started with your own budget the following points can be useful after you have understood the pros and cons.

Your budget

It will set the pace for the journey of the house hunting process. Will you need a loan? Don’t forget to have sufficient funds for decorating the house.  

Location matter

If you work in an office where you need to travel take the location into consideration. Are you willing to spend more time commuting? Will you invest in a private vehicle? Many builders offer apartment projects near railway stations or markets. These areas may be noisy and have little privacy. Can you make some sacrifices?

Tip: Paperwork and reputation of the builder count much more in affordable housing for it to be beneficial to the end user.

Finding the Right Professional Help with Your Tech Woes

Previous article

Do You Really Have The Best Pension Plan?

Next article

You may also like

More in Finance