Choosing between urban and suburban real estate is a key decision for many homebuyers, and both markets have their unique qualities. Urban housing is often located near workplaces, entertainment, and cultural hotspots, appealing to those who enjoy convenience and a fast-paced lifestyle. In contrast, suburban homes offer more space, peaceful neighbourhoods, and a family-friendly atmosphere. Both markets have their own trends, challenges, and opportunities. In this article, you’ll learn about the differences between the urban and suburban real estate markets and what makes each appealing.
See also: Role of geospatial infrastructure in sustainable urban development
Defining urban and suburban markets
What is an urban housing market?
An urban housing market is all about buying, selling, and renting homes in cities or big metropolitan areas. These places are packed with people, and this makes the housing market there very different from suburban or rural areas. Here’s what makes city living stand out:
In cities, a lot of people live in a small area, so homes are in high demand. This leads to higher prices for both buying and renting compared to other areas. Cities also offer a wide variety of housing types, like apartments, condos, townhouses, and sometimes even single-family homes.
One big advantage of urban living is how close everything is. You’re never far from shopping centres, restaurants, entertainment, or hospitals. Plus, cities usually have excellent public transportation, which means you don’t always need a car to get around.
Jobs are also a big pull to cities, as there are often more work opportunities and higher wages compared to rural areas.
City living has some unique features. You’ll often find a rich mix of different cultures and lifestyles, making it a vibrant place to live. The social life in cities is also busy, with plenty of events, nightlife, and things to do. But, on the flip side, green spaces like parks are more limited, and you’ll likely deal with more noise and pollution due to the high population and traffic.
What is a suburban housing market?
A suburban housing market refers to homes located just outside cities, in areas where people can easily commute to the city. These places mix some aspects of both city and country living, offering a different kind of lifestyle compared to living right in the city. Here’s what suburban living usually looks like:
Suburbs have fewer people living in them, meaning there’s more space and less traffic compared to cities. You’ll often find more room to move around, with bigger yards and less crowded streets. Suburbs usually have a variety of housing options, including single-family homes, townhouses, and even some apartments, but with more privacy and space than in the city.
Home prices in suburban areas are often more reasonable, making them a great option for families or people buying a home for the first time. Although prices can vary, suburban homes tend to cost less than those in city centres. Plus, living in the suburbs means you still have easy access to nearby city amenities but get to enjoy a calmer and quieter lifestyle.
When it comes to life in the suburbs, there are a few things to know. Houses are bigger, with more outdoor space, and communities tend to be close-knit, with neighbourhood events and local parks. You’ll also find that suburban areas are generally quieter, with less noise and pollution, and they often have lower crime rates than urban areas, which makes them feel safer.
One downside is that many people in the suburbs have to commute to the city for work, which can take more time, but they get to live in a more peaceful environment.
Lifestyle differences: City buzz vs. suburban calm
| Feature | City | Suburban |
| Pace of Life | Fast-paced, always on the go | Slower-paced, relaxed |
| Amenities | Abundance of shops, restaurants, and entertainment | Fewer amenities, often requiring travel |
| Public Transportation | Well-developed public transport system | Limited public transport, reliance on personal vehicles |
| Cost of Living | Generally higher | Generally lower |
| Housing | Smaller homes, higher prices per square foot | Larger homes, lower prices per square foot |
| Noise Pollution | Higher levels of noise | Lower levels of noise |
| Traffic | Congested roads, heavy traffic | Less traffic, easier commuting |
| Social Interaction | More opportunities for social interaction | Smaller social circles, often centred around family and community |
| Environment | Urban landscape, often with parks and green spaces | Suburban landscape, with larger yards and green spaces |
| Community | Diverse community, with a mix of cultures and backgrounds | More homogeneous community, often with a strong sense of neighbourhood |
Pricing and affordability
Urban housing costs
As of late 2023, the cost of buying a home varies a lot from one city to another in India. For example, prices per square foot are much higher in Mumbai and Delhi than in cities like Kolkata or Hyderabad.
The government has tried to make housing more affordable through programs like the Pradhan Mantri Awas Yojana (PMAY). Still, there are issues with how quickly these homes are built and how liveable they are.
Rent prices also change depending on the city. In 2018, the average rent was about INR 3,047 a month, with a single bedroom apartment costing roughly a third of that amount.
In general, living in India is cheaper compared to many other countries, but housing is a major expense. For a family of four, the monthly costs without rent are around INR 99,892.
Here’s a rough idea of what you can expect for buying or renting a home in different cities:
Buying a home (per square foot):
- Mumbai: ₹20,000 – ₹50,000
- Delhi: ₹15,000 – ₹35,000
- Bangalore: ₹10,000 – ₹25,000
- Kolkata: ₹5,000 – ₹15,000
- Hyderabad: ₹5,000 – ₹20,000
Renting a 2BHK apartment (per month):
- Mumbai: ₹30,000 – ₹60,000
- Delhi: ₹25,000 – ₹50,000
- Bangalore: ₹20,000 – ₹40,000
- Kolkata: ₹15,000 – ₹30,000
- Hyderabad: ₹15,000 – ₹35,000
Suburban housing costs
In India, the cost of buying or renting a home in suburban areas can vary a lot based on the location and what’s nearby. Here’s a simple overview:
Buying a home (per square foot):
- Gurgaon: ₹7,000 – ₹15,000
- Noida: ₹5,000 – ₹12,000
- Navi Mumbai: ₹6,000 – ₹14,000
- Thane: ₹5,000 – ₹12,000
- Whitefield (Bangalore): ₹4,000 – ₹10,000
- Rajarhat (Kolkata): ₹3,000 – ₹8,000
- Kukatpally-Miyapur (Hyderabad): ₹4,000 – ₹9,000
- GST Road (Chennai): ₹3,500 – ₹8,500
Renting a 2BHK apartment (per month):
- Gurgaon: ₹20,000 – ₹45,000
- Noida: ₹18,000 – ₹40,000
- Navi Mumbai: ₹15,000 – ₹35,000
- Thane: ₹15,000 – ₹30,000
- Whitefield (Bangalore): ₹12,000 – ₹28,000
- Rajarhat (Kolkata): ₹10,000 – ₹25,000
- Kukatpally-Miyapur (Hyderabad): ₹12,000 – ₹27,000
- GST Road (Chennai): ₹10,000 – ₹22,000
Which market offers better real estate investment opportunities?
| Aspect | Urban housing market | Suburban housing market |
| Demand | High demand due to closeness to business, schools, and amenities | Lower demand compared to cities but growing as areas develop |
| Value increase | Property values tend to go up quickly due to limited space | Potential for value increase, especially as cities expand |
| Rental income | Often higher rent due to location and demand | Typically lower rent, but may attract long-term tenants |
| Ease of selling | Easier to sell because of high demand | Can be harder to sell due to less demand |
| Affordability | Generally more expensive to buy and rent | Usually more affordable, allowing for larger or multiple units |
| Quality of life | Busy, with less green space and more congestion | Often offers more space, green areas, and a quieter environment |
| Competition | Higher competition for properties | Less competition, which can mean better deals and negotiations |
Choosing what’s best for you
Urban housing market
Advantages:
- Cities have lots of restaurants, shops, cultural spots, and public transport.
- Urban areas are lively with many activities, events, and diverse people.
- Cities usually offer more job opportunities, especially in finance, tech, and entertainment.
Disadvantages:
- Living in the city can cost more, with higher property prices and living expenses.
- Urban homes are often smaller compared to those in the suburbs.
- Cities can be noisy and crowded, which might not suit everyone.
Suburban housing market
Advantages:
- Homes in the suburbs generally have larger living spaces and bigger yards.
- Suburbs are usually more peaceful and less crowded.
- Suburban areas often have lower property prices and living costs.
Disadvantages:
- Living in the suburbs might mean a longer drive to work or city amenities.
- Suburbs might not have as many dining, shopping, and entertainment choices.
- Suburban areas can be less diverse in terms of culture and activities.
FAQs
The best choice depends on your individual needs and preferences. Consider factors like lifestyle, budget, commute, family, and amenities.
Lifestyle, budget, commute, family, amenities, safety, and quality of life.
Higher maintenance costs for older buildings, potential for noise pollution and traffic congestion in urban housing. Potential for higher property taxes in areas with good schools, higher costs associated with maintaining a larger yard in suburban housing.
The quality of life is subjective and depends on individual preferences. Some people prefer the excitement and diversity of urban living, while others prefer the peace and quiet of suburban living.
Crime rates vary between cities and suburbs. Some cities have higher crime rates than others, while some suburbs may have higher crime rates than others. Which is better, urban or suburban living?
What factors should I consider when choosing between urban and suburban living?
Are there any hidden costs to consider when buying a home in the city or suburbs?
How does the quality of life compare between urban and suburban areas?
Is it safer to live in the city or the suburbs?
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
