8 Affordable Property Markets of India
It is expected that with the new government policies and reforms in the real estate sector the face of the country will change. A change that is for the betterment of the nation and the countrymen.
The growing urbanisation has led to an increase in the demand for residential properties in the bustling cities of the country. The expatriates, who relocate to the metros for job opportunities mostly prefer luxury homes or villas. For a higher segment of the society these properties are affordable, whereas for mid income segment people investing in such properties is next to impossible.
For such sections of society the government has taken an initiative 'Housing for All by 2022'. The simple motive is to provide affordable homes within the price budget of up to Rs 25 lakhs. This measure will include the neighbouring smaller cities around the developed cities.
Affordable housing basically refers to the residential units available in India’s developed cities at comparatively affordable rates. It is basically the properties available for people whose income fall within a specific income range. The cost of affordable housing cannot be defined on a single parameter as the costing depends on the location, construction, amenities etc. This concept is very important for the people of developing nations who cannot afford to invest on expensive homes.
For affordable homes it is important to look for cities that have residential properties within the budget of Rs. 30-50 lakhs and are classified as emerging submarkets supported by good infrastructural facilities. These cities offer a wide spectrum of investable options in the real estate with relatively lower price levels and healthy returns.
Following is the list of cities that have comparatively affordable property markets.
1. Navi Mumbai, Maharashtra
The real estate market in Mumbai has evolved since last decade. The city has grown with suburbs like Navi Mumbai, Kharghar, Nariman Point. Navi Mumbai is the city of the present and Mega City of the future. Developed in 1972, it is one of the largest planned townships in the world. Navi Mumbai is home to various residential, commercial, educational and industrial entities.
With a comprehensive infrastructure including an international airport at a distance of 6 km, Navi Mumbai along with surrounding areas offers good investment opportunities. It is planned to reduce burden of Mumbai with sustainable and planned infrastructure. It includes various nodes such as Vashi, Central Business district, Nerul and Kharghar.
While property prices have increasingly become unaffordable in Mumbai, Navi Mumbai still provides numerous options for residential housing within the budget of Rs. 30-50 lakhs. With the increase in infrastructure developments like Navi Mumbai international airport, metro project, Sion-Panvel expressway, Nerul-Seawood-Uran Railway Corridor, the property prices of both residential and commercial are likely to increase. Also, the governments’ approval to the Mumbai Trans Harbour Link will prove to be a major game changer for the property market of Navi Mumbai.
A good growth has been observed in the affordable housing segment in the last few years. These projects are mostly located on the peripheral side of the city and offer small 1–2 BHK flats with basic facilities. There may be huge rise in the demand for luxury homes in Pune but the affordable housing segment is more attractive to the investors.
Infrastructural developments such as the extension of the Metro Rail and the widening of the NH 24 to six lanes is likely to aid in furthering residential developments in this area.
Jaipur has grown beyond everyone’s expectation to become one of the top global outsourcing cities in India. It has attracted investors across the globe, who consider Jaipur as the growing city of opportunities. Some localities in Jaipur such as Malviya Nagar, Tonk Road and Ajmer Road are among the best emerging investment destinations in the country.
With the plans of the Metro, the infrastructure is likely to develop at a faster rate. The government is also taking keen interest in developing the infrastructure of this region, and property prices are expected to witness an upward surge in the next few years.
If compared to the other growing cities Hyderabad is one of the most affordable city in India. Even the well-developed residential localities in Hyderabad, such as Manikonda, Kukatpally, Miyapur and Sainikpuri offer residential properties in the budget range of Rs 30-50 lakh.
Kochi is a green city and a pollution free city, and this has made the real estate players shift their business from bustling metros to a calm city like Kochi.
Today, the Kochi residential real estate market is dominated by affordable housing segment, which accounts to about 60% of the total housing projects in the city. The skyrocketing prices of properties have made difficult for mid-income segment people to own a house in Kochi. Hence the demand for affordable housing has paved it way through the posh areas.
8. Coimbatore, Tamil Nadu
Coimbatore has evolved a lot in terms of infrastructure and real estate. It is a multi-faceted market giving rise to more employments and leading to a rise in substantial amount of both residential and commercial properties. Coimbatore is the major industrial centre in Tamil Nadu after Chennai – and as incentives are given to IT companies by the Tamil Nadu government, Coimbatore has gained impetus as a preferred destination for IT/ITeS. Hence the demand for affordable housing has been prevailing in the city and the city is emerging as the favourite of the retired people.