Realty Perspectives in India, City Wise Analysis

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.

Know more: how real estate bill invites many NRIs to invest in India?

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.