India, rated as the fastest growing economy in the world, has developed a lot over the years. Of course, its metro cities are the pride and joy of India. These cities are the nerve centres of the country’s economy and cosmopolitan culture, and draw the most housing demand for numerous reasons such as better job opportunities, living standards and infrastructure. However, rapid urbanisation and development of these cities into mega cities have given rise to challenges such as pollution, traffic issues, high property prices, etc.
The government’s initiative to provide ‘Housing for All by 2022’ is being pursued laboriously. The simple motive is to provide affordable homes within the price budget of up to Rs2.5 million. This vision must necessarily encompass smaller cities.
Though affordability is a relative term, it is pertinent to look at destinations where residential properties within the budget range of Rs 3 million to Rs 5 million are available, and are classified as either emerging or growing sub-markets supported by good infrastructure development.
Here are 5 cities that offer great lower budget real estate investment prospects over the mid- to long-term.
1 . Hyderabad, Telangana
After a prolonged slump due to the global recession followed by political turmoil, Hyderabad’s realty market is once again set for an upswing. The thriving IT/ITeS industry has given further impetus to real estate demand.
Hyderabad is perhaps one of the most affordable cities among all tier 1 cities of India. Even well-developed residential localities in Hyderabad, such as Manikonda, Kukatpally, Miyapur and Sainikpuri, offer residential properties in the budget range of Rs 3 million to Rs 5 million.
When compared to other metros, housing in Hyderabad is relatively affordable. Property prices here are almost 60 per cent of those in Bengaluru and Chennai. In fact, due to political uncertainty, land prices in Hyderabad have remained stable. However, with the much needed political stability and creation of the new state Telangana, Hyderabad can now expect large investments into its property market in the near future.
2 . Pune, Maharashtra
Today, the perfect blend of manufacturing and service sectors make Pune a standalone economic powerhouse, with a rate of job generation that is hard to match. The city has witnessed steady appreciation over the last few years, and is ranked as one of the best markets for real estate investment.
The luxury homes segment has been burgeoning in Pune, with many large players entering. However, Pune is now witnessing a slight shift in the development trend. Many new players are venturing into the affordable housing segment where the greatest demand lies.
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. While 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.
3 . 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. Now, with Navi Mumbai receiving the final nod for an international airport, its property market and that of the surrounding areas have been showing great potential. While property prices have increasingly become unaffordable in Mumbai, Navi Mumbai still provides numerous options for residential housing within the budget of Rs3 million to Rs 5 million.
There are two new major economic drivers that are planned for Navi Mumbai – the proposed SEZs at Dronagiri, Ulwe and Kalamboli, and the upcoming international airport at Panvel. Also, the government’s approval for the Mumbai Trans Harbour Link will prove to be a major game changer for the Navi Mumbai property market.
4 . Jaipur, Rajasthan
Emerging from its image of being a tourism-led economy, Jaipur has grown to become one of the top outsourcing cities in India. The upcoming IT parks promise a great future across all real estate asset classes. The 250 km stretch between Delhi and Jaipur has become a hotbed for real estate development.
The government is taking keen interest in developing infrastructure in this region. The announcement of the Metro has triggered faster infrastructure development and property prices are expected to witness an upward surge in the next few years. With yearly capital appreciation in the range of 12 to 17 per cent, Jaipur promises good returns on investment.
5 . Surat, Gujarat
Surat is a well-developed metropolis in Gujarat. Recently conferred with the ‘Best Urban City of India’ award, Surat has gained prominence and recognition for being the Cleanest City in India by Intach.
Rapidly improving infrastructure initiatives have helped modernise Surat significantly. 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 means that this city will see rapid transition in times to come.
Credits Khaleej Times