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.

2. Pune, MaharashtraThe presence of several IT companies, educational institutes, favourable climate and proximity to Mumbai, makes Pune an ideal choice of living and business. Pune has seen tremendous growth in infrastructure field in the last decade, with the world-class residential and commercial projects being set up in the city, gave the city a global stature.Its real estate market is considered as one of the best markets in India. Considering the needs of the people belonging to the middle class group, the developers of the city have now slightly shifted their focus from luxury housing to affordable housing.

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.

3. Ghaziabad, NCR Ghaziabad is the next emerging market in the NCR region. It has a very high supply of residential properties in the budget of Rs 30-50 lakh. Well connected via Metro and roads to the job markets of Delhi-NCR region, the city caters largely to the mid-segment home buyers. The Ghaziabad sub-market enjoys a large population base from the industrial sector and SMEs, and low-income workers looking to upgrade to better accommodation. The areas within Ghaziabad, such as Indirapuram and Vaishali, are attracting investors on a wide spectrum.

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.

4. Ahmedabad, GujaratRecently, Ahmedabad has emerged as an important economic and industrial hub in India. Ahmedabad's increasing population has resulted in an increase in the construction and housing industries resulting in recent development of skyscrapers. Ahmedabad is providing extraordinary and unprecedented returns on the real estate front, and is one of the most exciting investment destinations in India today. The growth corridors for real estate development are the Sarkhej-Gandhinagar Road, Sardar Patel Ring Road, and Maninagar and on the north side of the Inner Ring Road in areas like Nirnaynagar and Ranip. S-G Road and Sardar Patel Ring Road in particular have witnessed a lot of residential bungalow and farm house developments in the recent years. The maximum supply of properties within the range of Rs 30-50 lakh is evident along the SG Highway and in areas such as Gota, Bopal and Satellite.
5. Jaipur, RajasthanIt has grown much beyond the old traditional ‘Pink City’. With the growing Centre of retail, commerce, administration, education, production and marketing, Jaipur offers countless options and varied opportunities in terms of both employment and lifestyle. From the horde of new projects coming up in Jaipur and from its ever changing skyline, it is evident enough that the city is growing tremendously.

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.

6. Hyderabad, TelanganaHyderabad, a potential city has faced a lot of turmoil at the time when it was growing, due to the formation of a new state, new government and an unstable political environment. The city boasts of well-developed infrastructure, affordability and cosmopolitan ethos. Due to the partition of two states, and accompanying bifurcation of resources, the city has lagged behind from its counterparts like Bangalore, Pune. The city is now upcoming these issues and with its buoyant and thriving economy and a dynamic workforce, is once again trending as a buyer’s market. The flourishing IT industry has given further impetus to the real estate consumer trend, which is evident from the growing demand for residential, commercial and retail spaces.

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.

7. Kochi, Kerala Kochi, a growing city can be termed as ‘the dark horse’ of the real estate market. The queen of the Arabian Sea is now a hot destination for real estate giants. The city has attracted many developers not only from the country but across the border. During the past six months, half-a-dozen developers have announced their plans to enter Kochi; many have already acquired huge parcels of land.

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.