India - Top 5 Residential
Property Investment Hotspots in 2017
By Mr. Ashwinder
Raj Singh, JLL India
The top 5 hotspots for
residential property investment in the country today are Mumbai, Bengaluru,
Hyderabad, Ahmedabad and Chennai.
These cities are more
or / less regulars on most hotspots
lists, but there is a sound rationale behind their consistent performance year
after year.
Not only are these
cities attracting new businesses and industry, their respective governments are
also investing resources in building adequate infrastructure to attract
capital.
With their local
economies growing, the influx of talent and skilled workforce into these cities
is inevitable, and this naturally results in increased demand for residential
properties.
Also, the earlier
slowdown in the economy and glut in the real estate sector has ensured that
prices in these cities have come down, and developers active there have now
invested in launching affordable housing projects that are in high demand.
With the economy now
on the growth path, more people will have money to invest in real estate -
which still remains the investment preferred asset class for most Indians.
These cities boast not
only of availability of basic infrastructure in terms of electricity, water and
other amenities, but are also improving in terms of communication and commuting
facilities such as metros and road development.
They also offer a
better quality of life because they have a good saturation of leisure and
entertainment facilities. This factor boosts the potential for outright sales
and increased rentals.
While Hyderabad,
Bengaluru and Chennai are the IT hotspots, Mumbai is seeing Navi Mumbai's
advancement as a growth corridor due to the increasing saturation of the
mainland.
These cities are
seeing a constant growth in employment opportunities, attracting people from
all over the country. This has naturally led to a lot of new residential
projects being launched, especially in the high-demand affordable segment.
As a result, NRIs
looking for lucrative returns in new developments in these cities can
expect handsome growth in capital values over the mid-to-long term, and steady
rental income in the meantime.
Also, the regulatory
environment turning pro-consumer on the back of RERA imminent deployment,
investing in residential property is all set to become even more attractive for
NRIs.
Other Cities As Strong
Contenders
Since the time the
government announced the list of Smart Cities in 2016, quite a few other cities
have also moved front and center on the investment charts. They are
particularly on the radar of NRIs focused on residential property investment.
These cities include Pune,
Kochi, Vishakhapatnam and Indore. The IT/ITeS sector
strong and growing in these cities, and they have the added attraction of being
commercial hubs and educational hotspot of their respective regions.
These cities will show
a lot of potential for lucrative property investments in the future.
2017 - A Year Of
Change
By April, 2017, the
entire country will be covered by the revolutionary Real Estate Regulation and
Development Act, which has been designed for absolute consumer-friendliness.
This Act will infuse a
massive dose of transparency and efficiency into the entire Indian real estate
sector.
NRIs looking to invest
into residential property in 2017 should focus on States where RERA is already
active. If they have other cities in mind, they will not have to beyond May
2017, after which the real estate sector will be uniformly level playing field
for everyone.
 |
| Ashwinder Raj Singh, JLL India |
The recent currency
demonetization exercise may keep a certain segment of buyers and investors away
from the market for a while, but for those planning to invest in projects
developed by reputed builders and using formal and legal channels of financing,
this is the right time to invest.
Also, a lot of
developers will be looking to achieve better liquidity for their future
projects, making the first 1-2 months of 2017 an ideal period for buyers to negotiate
favourable terms. It should be kept in mind that the expected nation-wide
implementation of RERA by mid-2017 will bring with it a lot of
compliance-related cost escalations for developers, forcing them to raise
prices even if they do not wish to.
About the author..
For
media contact
Arun
Chitnis
Head –
Corporate Communications & Media Relations
JLL
India
Level
6, Amar Avinash Corporate Plaza
Bund
Garden Road,
Pune - 411001.
Tele: 020
3093 0441 Fax: 020 40196101
Mob:
+91 96571 29999
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