Most of the cheap flights from the United States and Europe are bound for either New Delhi or Mumbai.
I think it's just a case of the South being sort of far away.
I'm in India now for the eighth time and really, really want to check out at least Karnataka, Kerala, and Tamil Nadu. Unfortunately, I got pegged by a drunk driver while riding a motorbike and have to get a minor shoulder surgery.
Back up to Delhi, FML. >>1295762
Basically whatever the fuck kind of housing you want, aside from a small palace.
One of my close friends lived in Delhi with her family for a while. I think they paid about 30,000 INR per month for a three-bedroom apartment in GK-I or GK-II, both of which are upper-middle class neighborhoods.
I remember checking out a flat in Jangpura - which is fairly popular with expats - back in 2014. I think it was 20 or 25k per month. Wrap-around terrace, marble floors, two bedrooms, and partially furnished.
You could get a stellar one-bedroom in a very exclusive area paying the same amount.
Unless you're going to club and drink yourself into oblivion every night, you won't have many major expenses outside of lodging. Food is cheap, alcohol is cheap at local shops, and transportation may as well be free (Delhi Metro fares are very low, and Uber is extremely affordable).
Ask your job to help you find local accommodation, though. Property brokers in New Delhi are NOT your friend, and they will rip you off viciously to ensure a higher commission for themselves. For instance, I once had a man show me a one-bedroom apartment in an awful neighborhood (monkey in the living room, cockroaches, rats, metal gate for a door) and ask for $1,000 per month plus a $300 commission.
Other times they'll ask for bogus documentation and police verification fees, or inflate legitimate fees by a factor of five or ten.
Much better to have a trustworthy local contact help you arrange everything.