The JLL India report lists Hyderabad, Pune, Jaipur, and Surat among the 10 affordable property markets in the country where flats can be bought within the budget of Rs 30-50 lakh.
India’s real estate sector has been witnessing a slump. It is thus crucial for investors to know about affordable housing and cities where one can invest in for good deals in a sluggish market condition. According to realty experts, the sector is set for a rebound and may see an uptick in sales this year.
According to property consultant JLL India’s chairman and country head Anuj Puri, 2016 may well bring the kind of investment activities that were seen in 2007 – the previous peak year which saw investments of more than $8 billion into Indian real estate.
With government’s ‘Housing for All by 2022’ being rigorously advocated, JLL India has come out with a list of 10 cities that offer lower-budget investment prospects over medium to long term.
The JLL India report lists Hyderabad, Pune, Jaipur, and Surat among 10 cities in the country where flats can be bought within the budget of Rs 30-50 lakh.
“These towns and cities offer a wide spectrum of investable options in real estate with relatively lower property price levels, providing the incentives for future capital appreciation and healthy returns, ” Puri said.
Below are the 10 cities and the reasons that make them 10 affordable property markets
“Hyderabad, with its buoyant and thriving economy and a dynamic workforce, is once again trending as a buyer’s market. The thriving IT/ITeS industry has given further impetus to the real estate consumer trend, which is evident from the growing demand for residential, commercial and retail spaces, ” JLL report said. With well-developed residential localities like Manikonda, Kukatpally, Miyapur and Sainikpuri in the budget range of Rs 30-50 lakh, Hyderabad is perhaps one of the most affordable cities among all tier 1 cities of India.
Over the last couple of years, Pune has recorded good growth in the affordable housing segment. Such projects are located on the periphery of the city and offer small 1–2 BHK flats with basic, no-frills amenities. Although there has been compelling growth in the high-end segment with luxurious 3-4 BHK homes, the budget housing story is far more attractive to investors. One of the best Indian city to live in and with more promising infrastructure development in place, Pune offers better standards of living than any most other metros.
Navi Mumbai, Maharashtra
Over the last few years, the real estate market in Navi Mumbai and surrounding areas have shown impressive growth, largely because of the planned approach taken towards development. 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 lakh. The proposed SEZs at Dronagiri, Ulwe and Kalamboli, and the upcoming international airport at Panvel are expected to generate a massive amount of employment, providing a further impetus to the demand for commercial and residential developments.
Jaipur is a fast-developing city with many influencing growth drivers in place. It has progressed tremendously on the residential as well as the retail fronts, and is considered one of the most important real estate destinations of North India. Some localities in Jaipur such as Malviya Nagar, Tonk Road and Ajmer Road are among the best emerging investment destinations in the country. With yearly capital appreciation to the tune of 12-17%, Jaipur holds great potential and promises good returns on investment.
Micro-markets in New Surat such as an entire stretch of Dumas Road are dotted with variety of malls, multiplexes and top-notch residential apartment projects. Even though Surat is not as populated as Ahmedabad, the excellent road network within the city – defined by several flyovers and wide roads – mean that this city will see rapid transition in times to come, with many more influencing drivers in place.
Ghaziabad is an emerging residential neighbourhood of NCR which 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. Infrastructural developments such as the extension of the Metro Rail and the widening of the NH 24 will further boost Ghaziabad’s realty market.
Although a city with extreme climatic conditions, Nagpur is one of the fastest-growing cities in India. Nagpur’s main claims to fame include its MIHAN and SEZ projects. However, with the state government taking keen interest in turning Nagpur into the next IT hub of Maharashtra, the city is set for a major transition in its real estate profile.
Gone are the days when the city’s builders focussed only on affluent buyers. 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 soaring land prices have made it difficult to own or build independent houses, and there is increasing demand from the emerging mid-income segment that wants homes packed with amenities at affordable prices. The demand for affordable housing is so strong that it has made its way through the poshest of areas.
Coimbatore, Tamil Nadu
Coimbatore is a market where 40% of real estate investments come from investors living in cities such as Bangalore, Cochin and Chennai. Apart from the demand from professionals engaged in IT/ITeS, Coimbatore is emerging as a retirement destination, and demand for 2 BHK homes is high from senior citizens. Demand for smaller apartments is primarily from young IT professionals, while villas and row houses see demand from NRIs, retirees and IT professionals with a preference for such properties.
With huge investments pouring into the state, rapid infrastructural development in the form of bullet trains, GIFT Smart City, the entrepreneurial nature of the population and a supportive, stable government, everything is going right for Ahmedabad. The oil, gas and energy industries, petro-chemical industries and automobile manufacturing industries are some of the major factors driving perennial demand for real estate in the city. 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.