Top 5 Cities In India For Middle Income Home Buyers

The great Indian middle class is thriving and expanding by the day. This class of Indians is ambitious, aspirational and working hard to realize its dreams. For Indians looking to grow and inch up in life, buying a home is always a priority. 

Here is the list of top 5 cities in India, which have markets designed for middle income group buyers. These cities combine the three characteristics of affordability, livability and builder interest -- and hence, available inventory. The property values in these cities should also appreciate if not remain stable.

Watch: Govt To Build 2 L Affordable Homes In 'Good Performing' States

Check out 5 top cities ideal for middle-income home buyers:

Chennai: 

The place of Chennai in this list is not surprising for those who understand the basis of Tamilian economics. The tenet of this economic theory says that everything should be priced to its value, and not higher. The rental and real estate market also absorbed this in spite of its urbanization and fast-paced growth in the IT sector.

The city also has premium and luxury residential homes on offer. Yet, it is quite possible for home buyers to buy a 2BHK in Chennai for around Rs 30 lakh. There are a few projects that come at Rs. 20-40 lakh for two bedroom homes in areas like Sholinganallur, Perumbakkam, Porus, Pallikaranai and Kovur.

Also Read- Why There Is A Need To Make Affordable More Affordable

Chennai is also a linear city that holds possibilities of expansion in various directions. That has retained the option of affordable homes in some 'middle class pockets' of the city.  

Bangalore:

The IT city tells a story of how real estate values swelled beyond its real value very quickly. That, however, does that mean there are no options for middle income home buyers. There are a few areas like Nelamangala, Attibele, Yelahanka that have become most sought after places after the new airport project was announced.

In such areas, home prices range between Rs 25 lakh and Rs 43 lakh for 2BHK flats in Chennai, which are the preferred choice for middle income home buyers. Bangalore city also offers another option for property purchase in the second hand market. A number of homes show up in the listings in old Bangalore areas which cost around Rs 50 lakh in areas like Raja Rajeshwari Nagar, K R Puram and Uttarahalli. As the city government is beefing up the infrastructure in the city, more number of areas are added into the city, bringing more areas into development.

Ahmedabad:

The capital city of Gujarat also boasts of a good mix of affordable homes with luxury and premium projects on offer. It has also become one of the best cities to buy affordable homes, according to many surveys.

The premium homes and other apartments in Ahmedabad cost much lower than those in Mumbai, Delhi and Bangalore. The average cost of a comparatively large 2BHK flat in Chennai costs around Rs 50 lakh on an average. In new areas like Bopal, South Bopal, Vatva, Narol, Kathwada, Satellite, S G Highway and Thaltej, 2BHK homes costs around Rs 45-50 lakh.

Lucknow:

Do you have around Rs 10 lakh? You can become a proud home owner in Lucknow in its new and upcoming areas. The city has a mix of premium homes that cost Rs 1 crore for large three-bedroom apartments in large towns. Its thrust, however, is on the lower end as most 2BHKs cost between Rs 15 lakh and Rs 30 lakh depending on the construction, project and locality.

A number of new projects by top builders are coming up in areas like Gomti Nagar, Faizabad Road, Amar Shaheed Path and Sultanpur Road, which showcase a number of under construction properties. The city's property value has been appreciating by 15-20 per cent annually. Growth prospects are high and many infrastructure projects like the new expressway that connects Lucknow and Agra, metro rail, etc are being planned.  

Bhopal:

The city is in the process of becoming an emerging real estate destination as it is witnessing rapid industrial growth. There has been a spur of real estate developments in the city, which are still affordable. The city has projects which offer one bedroom apartments at Rs 8 lakh. Two bedroom properties cost anywhere between Rs 12 lakh and Rs 25 lakh. Most of the homes having an area of about 1,000 sq. ft. in new residential projects cost around Rs 25-30 lakh.

Larger apartments with three and four bedrooms also cost under or around Rs 1 crore. A number of developers in the city are local builders, but national major Unitech has also launched a project in the city called Unihomes, its brand for affordable homes.

(The writer has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)