Where to look for homes within Rs 20 lakh in Delhi!

Raghuvansh Mishra, a Lucknow based businessman has just finished repaying the home loan he had taken for his first house. He is looking for an affordable second home in Delhi where most of his business clients are based. With Rs 20 lakh as his budget, where should Mishra go?

Check out properties within Rs 20 lakh in Delhi!

Here’s what you need to know. The upcoming edition of PropIndex (Jul-Sep 2014), a quarterly research initiative by Magicbricks indicates that areas such as Aya Nagar, Chattarpur, Mehrauli, Badarpur and Ghitorni is where you need to rush if you have a modest budget.

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While Badarpur is home to many who are employed in Noida, the remaining areas have been popular among tenants and buyers who work in Gurgaon but cannot afford the luxury of staying there. This means that while a 1BHK in Gurgaon or even its close neighbour, Vasant Kunj might cost you Rs 60 lakh, the same in either of the mentioned areas would cost within Rs 20 lakh, informs Bhim Yadav, local realtor at Vahan Properties.

But does the tag ‘affordable’ means you would have to compromise on something? Yes and No.

“For properties within Rs 20 lakh, these are the only areas one can bank on primarily because these are not considered up-market locations. These have benefitted from their proximity to other South Delhi localities and the commercialisation that has happened in and around. Most properties are individual floors on small plots in narrow lanes and hence such prices,” says Santhosh Kumar, CEO, Operations and International Director, Jones Lang LaSalle.

Shaleen Ahuja, local realtor at Sairam Properties says, “When it comes to buyers from affluent areas, the social infrastructure in such locations is not very pleasing. But these areas score well among investors who look forward to rental yield. Most buyers are from surrounding areas looking for affordable properties as first or second home investments.”

Raj Rewal, chairman, Delhi Urban Art Commission, a body that attempts to study and come up with development methodologies says, “Road paving is done without consideration of durability, safety or traffic regulation in Aya Nagar. There is provision of electricity in the entire settlement by the government, but not as per standards. There is no sewage system. The sewage and waste water from the households runs in open drains along the streets.”

But when it comes to housing, building activity in Aya Nagar has increased substantially. With growing demand for affordable housing and rental possibilities, there is a spate of new housing types that has altered the skyline of the settlement. The spectrum ranges from tenements shared by low-income residents to builder apartments. The same stands true for most other areas and local realtors hope that in times to come there would be a development methodology. As of now, end-users are keeping away from purchasing but investors are optimistic about the future and don’t mind going in for 1-2BHK units in these localities.

Prospective buyers are happy that to zero down on Aya Nagar, as you are connected to Delhi, thanks to Arjangarh Metro Station, a walkable distance from this locality. Although, the area has a peri-urban feel, the pricing of properties could be an encouragement. There is an over-supply of properties here which means it becomes more of a buyers market.

Since power of attorney is banned and banks refrain from giving home loans in some cases, watch out before you invest in a property here. Among those who have already bought, the strategic location with respect to Gurgaon helps in gathering sizeable rental yields.

Ghitorni, Chattarpur and Badarpur also have the benefit of easy commute, thanks to the respective metro stations. As for Mehrauli residents, the Chattarpur and Qutub Minar Metro Stations are the nearest. “For tenants living in any of these areas, proximity to the International airport and connectivity to the railway station is a determinant. Metro facilitates inexpensive travel and all the areas except Badarpur are within 11-15 km of the airport and within 18 km from the New Delhi railway station,” says Pankaj Jha, of Jeevan Rentals.

While most properties are within Rs 20 lakh, rental values are in the range of Rs 3,500-10,000 per month. For bigger houses, usually taken up on sharing basis, the rents are higher.

Apart from this, local vegetable markets, schools, colleges and hospitals are all in place and you wouldn’t need to go too far for daily provisions. But do watch out for the legality of properties and the land you intend to purchase.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/where-to-look-for-homes-within-rs-20-lakh-in-delhi/77003.html