Shift from Metros to Suburbs: Emerging Locations & Projects

The real estate market in India has recorded a clear shift in buyer preference and investment approach over the last few years, with upscale metropolitan cores giving way to suburban growth zones.

Homebuyers and investors are increasingly moving out of the traditional metro boundaries due to changes in lifestyle needs, remote work factors, cost pressures, and key infrastructure projects. This suburbanization of metros is not only a transactional aberration but a structural change that is transforming residential demand, capital flows and urban planning paradigms throughout the nation. 

The Infrastructure Impetus: Connectivity as a Catalyst 

The rise in costs during the last ten years in major metro markets such as Mumbai, Delhi NCR, Bengaluru, Chennai and Hyderabad has risen at a faster rate than income growth, and now ownership of such markets is more of a dream than a reality for several. At the same time, better connectivity, in the form of extensions of metro rails, highways, expressways, and elevated roads, has shortened the time to commute and distorted the historical space between suburbs and places of work. The distance to work centres in work-from-home and hybrid work is no longer a purchase driver, but space, affordability, and quality of life are now the key motivators behind buying choices.

Government policies that encourage low-cost housing, combined with increased need to have bigger dwelling units, have steered the movement to suburban and peri-urban markets. The current suburban homebuyer is concerned with cheaper housing prices outside of metro cities, quality of life, the availability of green spaces, and enhanced value of money, which is a strong pointer to real estate realignment in the long run. 

“Urbanization is no longer metro-centric and is moving into high-potential micro-markets.” - Manoj Gaur, CMD, Gaurs 

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New Urban Suburbs: Hotspots of the Urban Core 

In India, many suburbanized areas have developed beyond emerging centres into strong real estate centres. 

National Capital Region (NCR): 

Greater Noida West, Ghaziabad (especially around NH-24) and the sectors of Faridabad close to the Dedicated Freight Corridor have become the favourite areas of the middle-income buyers. Investment appeal has been strengthened by affordable housing schemes, commendable building infrastructures and high rental demand. 

Bengaluru’s Outer Ring: 

Areas such as Kanakapura road, Hoskote and Devanahalli have experienced an influx of attention since they are close to IT parks, new airport expansion and various industrial hot spots. The suburban living here has been reconfigured with mid-segment housing projects and integrated townships. 

Chennai Suburbs: 

Oragadam, Sriperumbudur and Kelambakkam are drawing in investors and end-users. These corridors have good manufacturing demand, future expressways, and better social infrastructure. 

Pune’s Strategic Belt: 

As intended, Hinjewadi, Wagholi and Talegaon have become popular and prosperous suburbs with good accessibility to IT/ITES centers, cheap housing and well-educated schools. 

“Real estate growth is directly proportional to infrastructure development.” - Kirthi Chilukuri, MD & CEO, Stonecraft Group 

Hyderabad’s Peripheral Hubs: 

Such localities like Narsingi, Shankarpally and Adibatla are increasingly coming into the limelight as they are strategically located around major areas of employment and fast retail and township construction. 

The suburban value of real estate is usually influenced by the development of infrastructure. With the widening of transport corridors, suburbs that could be thought of as far away are now reachable: 

• Metro Rail Extensions: Projects such as the Metro rail extensions of the NCR to Greater Noida and Gurgaon have greatly made the life of the people easier in terms of transportation hence the suburban houses now seem more appealing to the daily commuters. 
• Expressway Connectivity: Delhi-Meerut Expressway, extensions of Mumbai-Pune Expressways and Chennai Peripheral Ring Road are opening up hitherto under-serviced areas. 
• Better connectivity improves not only the investment opportunities but also the lifestyle upgrades, availability of good healthcare and education, and increased social infrastructure- this fortifies the long term demand foundations in the suburbs. 

“Most flat buyers today are end-users, with demand shifting toward residential homes in connected, amenity-rich locations.” - V Sunilkumar, MD, Asset Homes 

Suburban Projects: Profile and Value Propositions 

Integrated Townships: 

The modern townships are providing lifestyle amenities, retail precincts, plazas, community centres, and outdoor areas that promote neighborhood living. New projects on the edges of metros provide an ecosystem, which is especially attractive to families and young workers who are looking to maintain balanced lifestyles. 

Budget Housing and Mid-End housing: 

The suburbs have emerged as the standard of affordable housing projects in India, and the price is significantly lower, as compared to other metro areas. The incentives and prioritization of affordable segments by the government have further motivated developers to roll out mid- segment projects that pass the affordability, accessibility and asset quality tests. 

Luxury & Branded Residences: 

Even high-end developers are moving to suburban corridors with the advantage of developing quality gated communities, lifestyle homes and branded residences at prices that are more competitive than those at city centres. These are projects that qualify among the high-end customers who do not sacrifice space at the expense of amenities and specifications. 

“There’s a growing demand in emerging corridors such as Baner-Mahalunge and Punawale for integrated and multicultural township housing.” - Nitin Pardeshi, Director, Justo RealFintech 

The Future of Suburban Real Estate 

Due to changes in urbanization trends, the suburbs will become self-governing microcities with their own employment nodes, retail ecosystems, schools and other educational institutions, and lifestyle centres. The areas of real estate development will cease to be supported by distance to the city centre, but rather by the ability to access infrastructure, living standards, and the sustainability of economic dynamics. 

Finally, the transition between metros and suburbs is not a one-time effect; it is a paradigm shift, which is likely to shape the future of real estate investment and home ownership in India years to come.