With the central government trying to push affordable housing, this segment of the residential real market is expected to be the next growth driver of Indian realty. An increasing number of developers are expanding their portfolio to include affordable housing so that they can tap the growing demand for the housing needs of middle and lower income households.
There is not much profit margin in affordable housing projects, but this can be compensated by volume as 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.
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:
After a prolonged slump due to political turmoil, the real estate sector in Hyderabad is back in the reckoning so much so that the city has emerged as the most affordable amongst all metros.
Sound infrastructure, a burgeoning workforce and competitive real estate prices are the plus points tipping 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.
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.
With infrastructure of the place being ramped up, Navi Mumbai is fast emerging as 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.
A 100-hectare plot that was earlier earmarked for a Special Economic Zone (SEZ) by the CIDCO will now be used for 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.
In addition, CIDCO is also planning 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. Though most of Mumbai is out of reach for middle class, Navi Mumbai offers options for home buyers within the budget of Rs 30-50 lakh.
A part of the Delhi National Capital Region (NCR), Ghaziabad is quite affordable compared to Delhi, Gurugram, and Noida. Well connected via the Metro and an efficient network of roads, the city has emerged as a destination for mid-segment homebuyers.
The area 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 of housing taking place all 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.
The Ghaziabad Development Authority (GDA) is also doing its bit as it recently announced its plan to develop nearly 12,000 flats under the affordable housing scheme.
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 have a number of housing projects offering apartments in the Rs 20-35 lakh range.
The Kolkata Municipal Corporation is allocating Rs 1,800 cr for the city's infrastructure development during the current financial year. The investment is expected to bring about much improvement in the condition of 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. 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.