Among the major
markets a current study has revealed that cities like Bengaluru has the most affordable
residential market having more than 77 percent of the total residential units
being under construction which is under the valuation of Rs. 50 lakhs. Bengaluru
is one of the most preferred destinations of the NRIs after Mumbai and the
recent study also shows that many NRIs in different regions prefer Bengaluru
more than any other Indian city.
Mumbai still
continues to be the most expensive market and most unfavorable as the price
levels of more than 29 percent of the properties still under construction crosses
a crore of rupees. The sales figures of Mumbai are low posing great trouble for
the developers and the builders with the unsold inventory going high and new
launches going low.
Leaving
these metros if you think of the tier II and III cities they are fast growing and
have started to reap the potential of the real estate market of the recent
times. The population
and industrial growth with the government’s plans of roads and infrastructure in
cities like Ahmedabad, Surat, Vadodara, Hyderabad, Kochi, Kota, Rewari, Jaipur
and other cities have made the real state sector in these place more lucrative
than the major metros. In many of these places there was political instability
like Hyderabad due to which there was a lull but now most of these cities have
taken a lead with many multinationals expressing interests in these cities.
What should the end users and investors do?
The experts suggest
that although the realty sector is going through a tumultuous change there can
be wise investments made which can give higher returns than speculated. Negating the risks attached to it the
trend watchers specifies few of the precautions.
They suggest that if one wants to invest in the emerging areas one should analyze
the scope of returns on investment by surveying the industrial prospects and
the infrastructural development of the area. You can also gauge the NRI
investment prospects in the area and see if any of the projects in the area
have received foreign investment. The approval of the financial institutions is
also an indicator. The policy of the government and the RBI also has a bearing
and one has to check what kind of investor friendly measures the government has
taken in recent times. The realtors stress that political stability is also a
factor that should be there in order for things to run smoothly.
