Top 10 Residential Real Estate Investment Hotspots in India
Gurgaon
- Massive infusion of commercial office and retail space (Currently 22 million sq ft office space expected to grow to 40 million sq ft by 2012)
- Substantial rationalization of prices (Correction of over 25-30% across micro-markets)
- Wide breadth of projects across price ranges and geographies (Downturn has opened new geographies at much rationalized prices)
- Shortening absorption period (Increased absorption rates leads to reducing housing units to be sold)
- Quality developers and developments (Tier I developers and good quality developments)
- Water, power and connectivity continue to be areas of concern (Metro expected to improve connectivity)
Mumbai
- High income demographics (High investment activity levels across price bands)
- Massive infusion of commercial office and retail space
- Relative affordability in suburban markets (Most of the markets within the city unaffordable. Affordability in Eastern Suburbs, Thane and Navi Mumbai)
- Infrastructure can’t keep pace with growth of city (Infrastructure developments to boost residential demand in suburbs)
Noida
- Affordable micro-markets (Reasonable price range has led to increased absorption momentum)
- Excellent connectivity (Connectivity through existing road infrastructure and metro)
- Commercial office space (Addition of another 12 million sq ft of office space in the next 3 years)
- Residential demand primarily linked to IT/ITES sector
Pune
- Huge supply of office space – Addition of another 19 million sq ft of office space in the next 3 years
- Affordable micro-markets close to the city
- Oversupply in select micro-markets only
- Proximity to Mumbai
Bangalore
- Shifting geographies of commercial office development
- Most of the micro-markets highly affordable
- Residential demand linked to growth of IT/ITES sector.
- City has attained a critical size of IT occupiers which shall help attract more IT occupiers.
- Infrastructure hasn’t kept pace with the growth of the city
Chennai
- Diversified migrant population working in industrial, logistics and IT & ITES sector
- Prices have rationalized across micro-markets
- Properties along OMR benefits from excellent connectivity and proximity to IT hubs
- Absorption rate yet to pick up
Hyderabad
- High affordability inHitecCityand Gachibowli
- Oversupply inHitecCity– Gachibowli; other markets having low activity
- Residential demand linked to growth of IT/ITES sector
Kolkata
- Absorption rate has picked up in Rajarhat
- Highly affordable micro-markets
- Growth in office take up projected to be low
Ahmedabad
- Newest metropolitan city with population of more than 4 million
- Absorption rate has picked up in affordable markets closer to the city
- Highly affordable micro-markets
- Pharmaceuticals, logistics and automotive sector to drive population growth in the suburban markets
- Poor IT/ITES presence
- Short term growth of commercial activity uncertain
Kochi
- Diversified economy with growing IT/ITES presence
- Highly affordable micro-markets
- Huge Non-Resident Keralite demand drives residential real estate
- Micro-markets of Edapally and Kakkanad highly dependent on IT/ITES sector
