Which is the Best City for Real Estate investment in India?
The real estate sector has emerged as one of the promising sectors of the Indian economy today. It is contributing remarkably in the growth of GDP of the country. The out-of-leak, thinking of the real estate developers have played a key role in the infrastructure development of the buildings, shopping malls, townships, etc. Not only in the metro cities but also tier II and tier III cities. The real estate sector comprises of four sub sectors- housing, retail, hospitality and commercial. Which is the Best City for real estate Investment in India? Myinvestmentideas team has reviewed various cities which has potential to grow in terms of real estate prices. Though it may not be comprehensive list, we have provided top best cities that can be seen for real estatement investment in India.
How was real estate segment in past?
The past few years have seen a cautious approach by property seekers and controlled supply from the real estate developers. Several revival strategies were introduced like festive season discount and inclusion of freebies, but fall failed to deliver the desired result and the overall sentiments remained subdued. The property index is the measurement through which we measure the fluctuation in the rates of the real estate prices. Here, appreciation means high property prices and depreciation means low property prices. This is one area where you would be on a look out for down, as you have to pay a lower price for the property.
How do real estate segment looks now?
- This sector is the second largest employer after agriculture and is expected to grow over 30 % in the next decade. It is also expected that it will attract more NRI (non- resident Indian) investments both in the long and the short term.
- Nowadays, with the changing attitude of the people to own a house rather than living on rent, this sector has seen an unprecedented growth in the last few years. The commercial growth is also picking up pace as the economy is shifting from unorganized retail to organized retailing and multinational companies are also showing interest in establishing their offices in India.
- In cities like Kolkata, Chennai, Bengaluru, lesser growth in the new residential units is expected, as compared to the tier II and tier III cities like Patna, Lucknow, Indore, etc. the reason being the growth in its absolute term in these cities.
How Real Estate looks at specific cities now?
- A current study reveals that Bengaluru offers the most affordable residential market with more than 77 percent of total units that are under construction fall below the price band of 50 lakhs. It is one of the preferred destinations of NRIs for investment after Mumbai and Delhi-National Capital Region (NCR).
- Chennai and Kolkata are considered to be a very steady market. It does not show much variation in price as Mumbai and Bengaluru did in the bad times.
- Mumbai continues to be the most expensive and unaffordable market in the country with more than 29 percent of the under construction properties are surpassing a crore. Real estate developers are in a huge trouble. Sales figures are low and new launches have very few takers.
Which is the Best City for Real Estate investment in India?
Ahmedabad – amongst the fastest growing cities of India, it has recently started realizing the real estate potential. With the fast growth in population, it is witnessing a huge boom in construction. As Ahmedabad-Surat- Vadodara is emerging as metropolitan cluster, the region is on the verge of speedy growth as at present the property and land rates are comparatively low there.
Hyderabad – For the past 5 to 7 years, real estate was stagnant due to political instability. With the formation of new government we could see growth happening in Hyderabad now. Recently, several top MNC companies like Google shown interest in setting up 10,000+ headcount campus in Hyderabad. In coming years, we expect that Hyderabad real estate prices may shoot up with new projects coming in.
Kochi – This city is seen as the commercial capital of Kerela. Being an important port city, it is emerging as a hub for information technology and related services.
Kota – It is the biggest training hub for students aspiring for technological and medical students in Rajasthan. It is also witnessing an industrial boom with an abundant supply of water and electricity.
Rewari – An industrial hub in Haryana, Rewari has manufacturing units in a wide range of products like automobile parts, textile, pharmaceuticals, etc. its consumption center is mainly located in the NCR and it is proving to be the biggest benefit of this city.
Are there any risks involved in predicting the growth in real estate sector?
If invested with a little wit, an investment in real estate sector can fetch you even more than gold, but there are a few risks attached to it. Let's review them.
- While investing in emerging real estate destinations, analyze the infrastructure and industrial soundness of that area. Take the complete knowledge of the future plans of growth and development.
- The real estate sector relies heavily on the NRI investment. Due to the global volatility and unpredictable circumstances, the prices may not give as much returns as expected.
- The policies of the government of India and its seriousness in carrying out those plans also affect the rates and it should be taken into account.
- Political stability in the city is important for the growth.
A heavy stock of unsold inventory may give lines of trouble to the real estate developers and investors. But, not all is red for long-term investors who are looking to buy a property in India. With the government easing out the norms of foreign direct Investment, and planning to develop 100 smart cities, the investors have a huge road of opportunities to go and they should not leave any stone unturned to find out a good real estate property, which has bright prospects to grow.
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Best City for Real Estate investment in India