Difference Between Affordable and Luxury Housing in India


hardik, July 31, 2019

Difference Between Affordable and Luxury Housing in India

Affordable housing has been the preferred choice of many homebuyers for decades. However, there has been a rise in the number of luxury housing projects over the last few years. These projects have opened a wide spectrum of housing opportunities for homebuyers belonging to the mid-segment.

The most important aspect of luxury housing projects is the prospect of enjoying high-end amenities. If you are looking for villas in Bangalore, you could consider excellent residential townships such as Provident Park Square and Assetz 63 Degree East.

This article lists the main differences between luxury and affordable housing and its benefits to help you evaluate both properties.

Key differences between affordable and luxury housing

Depending on the amenities, a luxury apartment can be in the range of Rs. 1 crore to Rs. 4 crores or more. They usually have an annual appreciation rate of 3% to 7%. On the other hand, regular apartments have an excellent demand owing to a wide middle-class pool. Prices of homes can vary from city to city in the range of Rs. 40 lakhs to Rs. 90 lakhs. The annual appreciation can range between 2% and 4%. Besides the cost, other factors such as location and neighbourhood, investment value, space, amenities and comfort can differentiate luxury housing from affordable housing.

Must Read: Best Areas to Invest in Bangalore

Benefits of affordable housing

Some benefits of affordable housing include:

  • Savings of over Rs. 28,000 annually for a person with an income of Rs. 6 lakhs.
  • The benefits under Section 80 IBA of the Income Tax is being extended for one more year, i.e. to the projects approved till 31st March 2020.
  • Investors were taxed on the notional rental income of their second home irrespective of whether the property was let on rent. The exemption of notional rent is likely to appeal to more homebuyers in the real estate market. 
  • According to the Union Budget 2019-20, the benefit of capital gains rollover under Section 54 of the Income Tax Act will increase to two residential houses for a taxpayer having capital gains up to Rs. 2 crores. However, this benefit can be availed only once in a lifetime.

Benefits of luxury housing

Premium luxury housing projects aimed at High Net-worth Individuals (HNIs) want the best that money can buy. These properties are meticulously designed ensuring maximum comfort and state-of-the-art technologies for residents. Living in such homes can offer a joyful experience and an elevated quality of life. Moreover, these townships are located at central locations with important places like business hubs, railways and airports in proximity. Non-resident individuals prefer luxury townships and view luxury homes as the perfect investment opportunity for guaranteed multiplied returns in the future.

Must Read: Tips to Buy Best Flat in Bangalore


To sum up, both affordable and luxury housing have distinct audiences, each one fulfilling residents’ respective needs. You can choose depending on your expectations and financial capabilities. 

Bangalore is rapidly rising as one of the most preferred destinations to live in India. If you are planning to relocate to the city, you can consider properties such as Provident Park Square and Assetz 63 Degree East. The premium housing projects are built keeping in mind all modern day facilities needed for high-quality living.

If you need financial assistance to purchase a house for sale in Bangalore, you can avail a home loan from Bajaj Finserv Homes & Loans. Home loans up to Rs. 3.5 crores can be availed on easy EMIs.