Because Gurgaon is one of the
leading real estate destinations in North India, the real estate trends in this
city are very important. Affordable Housing in
Gurgaon has been in high demand among end-users in recent years. Even
when the property sector was experiencing sluggishness and a drop in overall
property demand, the demand for affordable housing in Gurgaon or other parts of
NCR remained relatively constant.
The Current Situation in Gurgaon's Affordable Housing Real Estate
A few years ago, the majority of
residential projects developed in Gurgaon were luxurious and expensive. These
residential communities were built by a reputable real estate developer to meet
the needs of the region's growing population of wealthy individuals. According
to the survey, approximately 60% of all properties launched in Gurgaon between
2018 and 2019 fell under the Rs. 50 Lacks slab. A variety of factors eventually
contributed to an increase in the inventory of these residential properties:
Excess in supply: As a result of too many real estate developers
concentrating on high-end developments, there is an excess of supply over
demand.
Rising property rates: Rising housing prices have made luxury homes
prohibitively expensive for many prospective buyers who would otherwise have
purchased them.
Good Demand for Affordable Housing: Because of the growing IT and
corporate sectors, Gurgaon has seen a large influx of working professionals. The
majority of these professionals prefer to purchase smaller, more affordable
apartments.
Property Buyers Changing Their Focus: Observing the shift in demand
from luxury to affordable homes, many investors began to invest in affordable
homes in order to earn good returns.
The real estate market in Gurgaon
has changed dramatically in recent years. By now, the best Haryana housing
board flats in Gurgaon have seen a good sales volume.
Growth of the Affordable Housing
The development of affordable and
mid-range residential properties in Gurgaon took place in stages over the
years. Various factors have played an important role in gaining momentum for
the movement.
Developers: Many real estate developers who were losing money due
to a drop in sales of luxury housing began to shift their focus to affordable
housing. This allowed them to survive because the revenue generated by
affordable housing breathed new life into the real estate industry and allowed
the builders to continue with their other projects. This is a win-win situation
for builders and buyers alike, as well as the entire real estate industry.
Government Schemes: Several government initiatives to boost this
segment have also aided in development. PMAY (Pradhan Mantri Awas Yojana) and
Pradhan Mantri Awas Yojana flats in Gurgaon are two of the best schemes. Because
of the subsidies provided to the real estate developer, they were able to offer
the home at very low prices. These steps have been taken in order to present
the best housing in Gurgaon to a larger segment of the property market rather
than just those who can afford the luxury housing.
Why is Affordable Housing in Gurgaon Beneficial?
High & Quick Appreciation
Affordable properties tend to
appreciate faster than luxury properties, which is the primary reason for the
growing interest of investors. Most Tier 1 and Tier 2 cities have reached
saturation, and real estate development has shifted to the outskirts and
suburbs with more affordable options.
Limited Risk
The amount of risk is one of the
main concerns of real estate investors and home buyers (risk is everywhere).The
best thing about affordable housing is that it has a lower risk because it
requires less capital and can guarantee high returns. Affordable housing flats
in Gurgaon can also be a good source of rental income and are the most
accessible option for first-time investors.
High-End Market Saturation
Because of the inflated value,
the luxury housing property market has become immovable and is far from the
affordability margin. With this decline, many builders have announced their
affordable residential projects, which have good exposure in the mid-level
market. With the luxury property market saturated, investing in affordable
residential property has become a viable investment option.
Higher resale value and easy exit
Because a large number of
end-users are looking for affordable residential property, the scope for real
estate is easier. This rising demand for affordable housing also makes it
easier to obtain a good resale price, allowing for a higher profit. As a real
estate investor these days, affordable housing is a far better option than
luxurious housing.
Renting has never been this easy
Because of their lower prices,
affordable residential properties are known to have better rental prospects. In
any city, affordable areas have seen rapid development in terms of infrastructure
and value. These characteristics contribute to it being more suitable for
renting, and one can be confident of finding the best tenant eager to rent the
home. This ease of finding a renter will also ensure consistent 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 resell it for a profit. These residential properties can also be rented out
to generate consistent cash flow.
