Real estate in India is
a sector which has grown by leaps and bounds in the last couple of decades.
Indian real estate is considered ideal for investment purpose. Real estate
sector has been witnessing rapid growth in major Indian cities with the high
rises and malls adorning the city landscapes.
However, the feverishly growing
real estate has been affected by sluggish sales and even the government is
concerned about the state of realty in the last few quarters. At a time when
the real estate is battling issues
like lack of price correction, cumbersome approval procedure leading to project
delays and most of the developers find themselves in a cash crunch, investors
are bound to be apprehensive of investing in the sector.
Good Times Ahead
However, real estate analysts
have predicted that there is no need to worry about the bubble burst and that
real estate still remains a safe bet for investing your precious wealth. Knight
Frank, a renowned realty advisory firm, have come up with a study that says the
real estate investors can expect a possible return on investments ranging
between 18.6 percent and 29 percent per-annum over the next five years. Based on a survey on Indian Real Estate
Market, Knight Frank has come up with a list of 13 residential real estate
areas, which are being expected to show a high rate of returns in next 5 years.
It is being expected that even there is slowdown in Indian real estate
market, property prices in these areas will show upward trend.
Indian real estate sector has
been much speculated upon after reports of high number of unsold housing units
in realty hubs like Mumbai. However, Knight Frank’s report says that despite
the slump in the real estate market, Mumbai will continue to be the most
promising investment destination followed by Delhi-NCR, Chennai, Pune and
Bangalore.
13 destinations across the five
cities of Mumbai, Delhi-NCR, Chennai, Bangalore and Pune have been identified
in the report as the real estate hotspots. Prices are expected to appreciate in
the range of 91-145 percent over the next five years in these locations. Akin
to the recent past, residential real estate will emerge as promising asset
class for investors during the stated period. As for the industry influences on
real estate, performance of IT/ITeS firms will be crucial in the cities of
Bangalore, Chennai and Pune.
Realty Hotspots
Delhi-NCR has been the scene of
real estate burst in the past few years with enormous amount of housing
projects coming up in Noida and Gurgaon. With investment point of view in real
estate, Dwarka Expressway, Gurgaon and Greater Noida are among top 5 real
estate investment destinations. The northern pocket shows spectacular
correlation between infrastructural development and real estate boom as
Noida Extension and Dwarka Expressway are expected to bring in 111 percent and
108 percent respectively over the period.
Ulwe, Wadala and Chembur in
Mumbai are expected to witness price appreciation of 145 percent, 133 percent
and 125 percent respectively in five years, places ensuring the highest returns
by year 2017.
South Indian real estate market
is deemed stable as compared to its counterparts of Delhi and Mumbai.
Medavakkam and Pallikarni are being identified as the most profitable locality
in Chennai. Medavakkam property prices are expected to rise by a whopping 103
percent, whereas Pallikarni will see an appreciation of 93 per cent.
Pune is a city where real estate
development has entered the rapid growth stage. Hinjewadi, Tathawade, Ravet and
Wakad would witness rise in prices by 100 percent, 98 percent, 97 percent and
91 percent respectively mainly due to the IT and ITeS sectors.
Bangalore real estate market is
characterized by steady growth added with reasonable pricing as compared to
other metros. Bangalore realty is expanding rapidly towards the outskirts. The
Namma Metro connectivity will have a massive impact upon Bangalore’s real
estate in the next five years. Hebbal and KR Puram are the areas
identified who would be witnessing highest price appreciation. While Hebbal
will witness 94 percent price rise, KR Puram property will appreciate by 91
percent.
