Why Affording a House is No More Complicated?

Peripheries:

With the increasing growth of population and fast growing urbanization, urban India is witnessing scarcity of land. Also, government bodies that own huge pieces of land in central locations are being used inefficiently.

Land prices have become costlier and unaffordable for mass development, according to Jones Lang LaSalle India (JLL) report. With soaring property prices and several controls over construction mainly in central locations have forced developers to develop projects in far flung locations, where land prices are bit lower than main cities.

For example, in metros like Mumbai and Delhi, low-cost housing projects are developed around 65-75 km away from the city centre. However, in Bangalore, Chennai and Pune, such housing projects are 25-30 km away from the central locations. And in Ahmedabad and Kolkata, such projects are at a distance of 15-20 km.

But, some developers are also developing premium projects in far flung locations, in spite of low land cost. "In peripheral areas, the cost of developing infrastructure is huge as the local authorities do not extend any support. After incurring such huge expenses, providing low-budget houses is not viable hence, they come up with 'second home villas', a lifestyle product sold at a premium," said Subhankar Mitra, Head, and Strategic Consulting (West), JLL India.