Top affordable cities in India

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The most vibrant segment of the residential real market right now, affordable housing, is expected to be the next growth driver of Indian realty.

More and more developers are expanding their portfolio to include affordable housing to tap the growing demand for the housing needs of middle and lower income households.

Profit margins in this category may be low, but demand and potential sales numbers are on the rise. Affordable housing has gained fresh momentum with a rise of 15% in new launches compared to the previous quarter.

A spate of government initiatives has further propelled this sector, resulting in the creation of affordable housing hubs across the country. Here’s a look at the top four cities offering a wide range of affordable housing options that promise future capital appreciation and healthy returns:

Hyderabad

With Hyderabad reinventing itself as a key real estate market, the city has emerged as the most affordable amongst all metros. After a prolonged slump due to political turmoil, the real estate sector in Hyderabad is back in the reckoning.

Sound infrastructure, a burgeoning workforce and competitive real estate prices have tipped the scales in favour of the city. The IT/ITeS industry has been the most prominent growth driver for real estate, leading to a consistent demand for residential, commercial and retail spaces.
Hyderabad offers a host of affordable housing options across several micro markets.

Established residential localities such as Manikonda, Sainikpuri, Miyapur and Kukatpally offer housing options in the range of Rs 30-50 lakh.

This segment continues to grow and has accounted for a majority of fresh launches in the previous two quarters.

The improving real estate dynamics indicate a revival of the housing market. The increased pace of construction has infused confidence in homebuyers. With unsold inventory piling up across the city, end users now have more options and bargaining power.

Navi Mumbai

With all infrastructure developments, Navi Mumbai is expected to be one of the most promising and affordable growth corridors in the Mumbai Metropolitan Region.

The City and Industrial Development Corporation of Maharashtra (CIDCO) is at the helm of planning the structured growth of both residential and office space.

CIDCO has announced that it will use a 100-hectare plot that was earlier allotted for a Special Economic Zone (SEZ) to achieve its previously decided target of constructing 10,000 new low-cost homes. Around 60 hectares of this land lies in Dronagiri and the rest in Karanjade and Kamothe, all in close proximity to the proposed Navi Mumbai International Airport.

This apart, CIDCO also plans to develop a modern township called Navi Mumbai Airport Influence Notified Area (NAINA), close to the new airport in Panvel on 1,200 hectares (3,000 acres) of land.

The upcoming International Airport and proposed SEZs at Dronagiri, Ulwe, and Kalamboli are expected to further boost demand for commercial and residential developments in and around Navi Mumbai.

Even as property prices remain unaffordable in Mumbai, Navi Mumbai offers options for home buyers within the budget of Rs 30-50 lakh.

Ghaziabad

A part of the Delhi National Capital Region (NCR), Ghaziabad has evolved from a sleepy hamlet to a bustling real estate market. Well connected via the Metro and an efficient network of roads, the city has emerged as a destination for mid-segment homebuyers.

Ghaziabad boasts of established housing clusters such as Kaushambi, Vaishali, and Indirapuram that offer a high supply of ready-to-move-in properties by renowned developers. Homebuyers can easily choose an apartment in the Rs 30-50 lakh range from the many ready and upcoming housing complexes dotting the area.

With upcoming residential corridors such as Raj Nagar Extension and development along the NH-24 beyond Indirapuram, Ghaziabad is living up to its promise of an affordable housing hub. Augmenting the city’s growth are infrastructural developments such as the extension of the Metro and highway widening.

To boost the affordable housing segment, the Ghaziabad Development Authority (GDA) has also announced its plan to develop nearly 12,000 flats under the affordable housing scheme.

Kolkata

The affordable housing segment has managed to buck the slump in Kolkata. Growing demand and favourable government policies have encouraged many developers to launch new projects, and they are reviewing projects which are at the initial stage of planning. A lot of housing finance companies are collaborating with developers of affordable projects to aggressively promote projects.

Kolkata has always been considered more affordable compared to other metros, and a recent spate of affordable housing launches has added fresh momentum to the city’s residential market. Localities such as Rishra, Dum Dum, Barasat, Khardah, Serampore, and Andul are brimming with projects offering apartments in the Rs 20-35 lakh range.

The Kolkata Municipal Corporation is allocating Rs 1,800 crore for the city’s infrastructure development during the current financial year. With this announcement, the city’s infrastructure is likely to witness an overhaul with improvement in water supply, roads, sewerage, solid waste management, and parks.

As more developers realise the potential offered by the affordable housing segment, they have started offering innovative marketing schemes. These are aimed at increasing the sales of unsold properties during the festive season. According to experts, the momentum gained during the festive season is likely to continue for the rest of the year resulting in 30% annual growth for affordable housing. As more affordable housing hubs come up all over the country, it is expected to turn into a $100 billion per annum market in the next five years.

Source: Hindu