Is Affordable Housing A Good Investment In Gurgaon?
As we know that Gurgaon is one of the leading real estate destinations of North India, the real estate trends here hold great importance. In the last few years, affordable housing in Gurgaon has been high in demand in the middle of end-users. Even when the property sector was passing through a period of sluggishness and experienced a drop in overall property demand, the demand for affordable housing in Gurgaon or other parts of NCR remained about the same.
The Current Scenario in the Affordable Housing of Real Estate in Gurgaon
A couple of years back, a maximum of the residential projects developed in Gurgaon were luxurious ones at a very expensive price. Built by the reputed real estate developer, these residential communities were aimed at catering to the demands of the rising population of rich individuals in the region. According to the survey, approx 60% of the total properties launched in Gurgaon between 2018 -19 came under the Rs. 50 Lacks slab. A lot of factors eventually led to a rising inventory of these residential properties:
- Excess in supply: Excessive supply more than demand, as a result of too many real estate developers concentrating on high-end developments.
- Rising property rates: Increasing housing values making the luxury homes too costly for many of the prospective buyers who would have otherwise purchased those housing.
- Good demand for affordable housing: Gurgaon has observed a huge migration of your working professionals owing to the budding IT & corporate sector. Most of these professionals prefer to buy smaller and affordable apartments.
- Property buyers changing their focus: Observing the transfer in the demand from luxury to affordable homes, a lot of investors started to invest in affordable homes, to earn good returns.
- The circumstances in Gurgaon’s real estate have altered very much in the last few years. The best Haryana housing board flats in Gurgaon have experienced a good sales volume by now.
Growth Of The Affordable Housing
The development of the affordable and mid-range residential properties in Gurgaon took place over the years in a step-by-step process. Different factors have played an important role in it, helping the movement gain momentum.
Developers: Many real estate developers who were undergoing losses owing to the fall in sales of luxury housing started to shift their attention towards affordable housing. This allowed them to sustain as the business generated from the affordable housing infuse new life into the real estate industry and allowed the builders to carry on the other developments. This is a win-win situation for the builders & buyers, as well as for the whole real estate industry.
Government schemes: several government initiatives undertaken to boost this segment have aided in developing too. Some of the best schemes are PMAY (Pradhan Mantri Awas Yojana) and Pradhan Mantri Awas Yojana flats in Gurgaon have been very successful. With subsidies being provided to the real estate developer, they have been able to offer the home at very affordable prices. These steps have been meant to presenting the best housing in Gurgaon to a large section of the property more willingly than only those who can afford the luxury housing.
Why Affordable Housing in Gurgaon is Good For You?
High & Quick Appreciation
Affordable properties tend to appreciate faster compared to luxury properties and this is the biggest reason behind the huge attention of more & more investors. Most Tier 1 & Tier 2 cities have reached their saturation points and now real estate developments have shifted towards outskirts & suburbs with affordable options.
One of the biggest concerns of real estate investors & home buyers is the amount of risk (risk is everywhere). The best thing about affordable housing is the lower risk because of the lower capital and one can be guaranteed getting high returns. Affordable housing flats in Gurgaon can also serve as an excellent source of rental income and is the best accessible option for first-time investors.
High-End Market Saturation
The luxury housing property market has come to a point of immovability because of the inflated value and is far from the affordability margin. With this decline, many builders have announced their residential project in the affordable segment as it has good exposure in the mid-level market. With saturation in the luxury property market, investment in affordable residential property has become a workable investment opening.
Higher resale value and easy exit
In affordable property scope for the real is easier due to the good amount of the end-users are looking for affordable residential property. This ever-increasing demand for affordable homes also makes it easy to get a good resale price which ultimately helps earn more profit. As a real estate investor these days, considering affordable housing is a much better option than that luxurious ones.
Renting has never been this easy
Affordable residential properties are known to have better rental prospects mainly owing to their lower prices. Affordable regions in any city have seen rapid development in infrastructure and value. These features attribute to it being better for renting and one can be assured to find the best tenant eager to rent the home. This easiness in finding a renter will also make sure of regular cash flow.
High return on investments
Real estate investments are the best way to earn a good return on capital and with affordable property, you can resale the property to get your money back with profit. These residential properties can also be rented out for a regular cash flow.