The demand for residential spaces has been witnessing an upswing trend as country’s real estate sector has started recovering from blows of recession. It has been progressing quite rapidly from last few months, resulting in restoration of real estate prices and quick paced development.
The top two residential investment destinations in India are Mumbai, the commercial capital and Gurgaon, the outsourcing hub. According to global real estate consultant Jones Lang LaSelle in Asia Pacific Property Digest, both Mumbai and Gurgaon have seen a massive brewing up of commercial and retail space. The reason for this infusion is essentially the flourishing demand for residential property, which was actually spurred by a growth in employment opportunities.
The residential markets of Gurgaon and Mumbai are seen welcoming a price correction of 25-30% from their peak values. The upward mobility of property prices after being hit hard by recession has presented investment opportunities to both end-users and investors alike. The residential sector of Indian real estate industry has emerged as a bright option for individual investors as the crisis torn economy begins to take the path of recovery.
Followed by Gurgaon and Mumbai as the lucrative investment options are Noida, Pune, Bangalore, Chennai, Hyderabad and Kolkata as rated by Property Digest. It has been observed earlier while studying real estate development trends that an influx of IT and ITeS companies leads to better infrastructure in a city. The employees of these corporate firms generate demand for residential property, thereby, bringing pace to realty developments and creation of residential units at affordable prices. Though, real estate markets of these cities have revived, infrastructure continues to remain a concern across most of them. They seem to be unable to keep pace with the growth in population and industrial establishments. But, property developers have been coming forward to address the issue of supply deficit and taking up building of more and more residential as well as commercial properties.
Jones Lang LaSelle also added that downturn could be a blessing in disguise for some in Gurgaon as it has led to new opportunities at affordable prices. The entry of Delhi Metro and quality development projects in NCR is expected to improve connectivity while ranking higher on preference listings.
High income demography and great investment activity levels across various price bands can be seen in the city of Mumbai. The relative affordability in suburban markets like Thane and Navi Mumbai has been attracting investors in a big way. This is why Mumbai real estate has recovered fast from slowdown while becoming one of the hottest property destinations in India.
In other cities like Noida, Chennai, Hyderabad, Kolkata, etc. the reasonable price range has led to an increased absorption momentum.
-The excellent connectivity through the existing road infrastructure and the entry of Delhi Metro to Noida has invited attention from investors.
-Chennai being a major trade centre, too, is well connected by road, rail and air to important cities of the country. Moreover, it is far less congested and polluted as compared to other metro cities.
-As for Hyderabad real estate, various realty firms are taking deep interests in developing its property sector given the high absorption rates of residential and commercial property.
-Kolkata real estate is also following similar property development trends being the centre of modern education, science, culture and politics.
-Real estate in Bangalore, the IT hub of India is also growing due to the expanding need for property of all kinds.
-Like in other cities, demand for Pune realty in residential sector is increasing, restoring its climate of boom prior to recession.