Is this right time to invest in affordable homes Gurgaon? Find out

As Gurgaon is one of the leading real estate hubs in India, the property trends here hold considerable significance. In recent years, affordable homes in Gurgaon have been high in demand among various sections of the population. Even when the real estate sector was passing through a period of stagnancy and witnessed a fall in total property demand, the demand for affordable housing remained about the same.

The current scenario in the affordable segment of real estate in Gurgaon

A few years back, the majority of the housing projects developed in Gurgaon were high-end ones offering premium homes. Built by the leading developers, these projects were aimed at catering to the needs of the growing population of affluent individuals in the city. However, 60% of all the properties launched in Gurgaon between July and December 2018 came under the INR 50 lakhs bracket. Several factors ultimately led to a growing inventory of these premium properties:

• Excess in supply: Excessive supply compared to the demand, as a result of too many developers focusing on high-end projects.
• Rising property rates: Increasing property rates making the premium homes too expensive for many of the potential buyers who would have otherwise purchased those homes.
• Higher demand for affordable housing: Gurgaon has witnessed a major influx of younger professionals due to the growing corporate sector. Most of them prefer to buy smaller and affordable homes.
• Investors changing their focus: Noticing the shift in the demand from premium to affordable homes, a large number of investors started to invest in affordable housing, expecting higher returns.
• Evidently, the scenario in Gurgaon’s real estate market has changed considerably over the years. The best affordable homes in Gurgaon have recorded a high sales volume already.

Growth of the affordable segment

The growth of the affordable and mid-range housing segment in Gurgaon took place over the years in a gradual process. Several factors have played a role in it, helping the trend gain momentum.

Developers: Many of the developers who were suffering losses due to the fall in sales of premium properties started to shift their focus towards the affordable segment. This allowed them to revive as the sales generated from the affordable properties infused fresh credit into the industry and allowed the developers to resume the other projects. This has proven beneficial to the buyers, the developers alike, as well as the real estate industry as a whole.

Government initiatives: Several government initiatives undertaken to boost this segment have helped it grow too. These include the PMAY scheme, the HUDA affordable housing policy, and others. In particular, the HUDA affordable housing projects in Gurgaon have been quite successful. With subsidies being provided to the builders, they have been able to offer the property at much lower prices. These moves have been aimed at providing modern housing in Gurgaon to a large section of the property rather than only those who can afford the premium homes.

Are affordable homes in Gurgaon worth investing in?

Considering that an affordable property would be relatively cheaper, it is generally a good idea to invest in one. In the past, affordable properties mostly found their market among end-users. However, the prospect of profitable returns compared to the prices has also helped the best affordable housing projects in Gurgaon gain popularity among the investors. However, not every affordable project would help one earn high returns on investment.

• Location: Affordable or not, no home would generate good returns if the location isn’t attractive to home renters. You might want to look for homes that are close to major commercial hubs and offer good connectivity.
• Amenities: One of the common trends among contemporary home seekers is the high demand for residences with modern amenities. Such a home would surely help you attract tenants.

Other factors, such as floor plan, configuration, and comfort are also quite significant. While one needs to be careful while investing, several of the upcoming affordable homes in Gurgaon have the potential to attract high returns.