Most Preferred Cities for Investment
Delhi and NCR
Delhi and NCR with the happening and investment hub cities of Gurgaon and Noida are the hot markets for real estate in India. This is due to the good infrastructure and quality of life provided in the city and remains the basic cause for the large scale investments in the IT, ITES and the BPO sector in this region.
Delhi’s residential real estate market is driven more by investors rather than by end-users. The overheated markets like Delhi and NCR had as much as 100 percent escalation in property prices but now there are already corrections happening in the market. The overheated property market in Delhi which witnessed over 100 percent escalation in prices, still continue to rock as a hot destination for real estate investment.
Delhi has been losing steadily to its suburban counterparts in office market share primarily due to poor quality of buildings and high real estate cost in the CBD. The residential property is going to witness increase in prices on the strength of high-end housing. Even the rentals in CBD are expected to go up with Delhi Metro becoming operational in that area this year.
Noida with well-defined master plan, good connectivity to Delhi and impressive infrastructure is fast turning into an investor’s paradise both in the residential and commercial sector. Moreover, the government’s initiative to invite investments has transformed Noida into an IT hub of the country.
Gurgaon on the other hand apart from being the corporate addresses of many MNCs is fast turning into a city to hunt for luxury homes. And with job opportunities flourishing and burgeoning disposable incomes, the cities in India are experiencing a shift towards premium living.
Mumbai continues to reign as the commercial and financial capital of India, the real estate prices in the city are at an all time high. A survey reveals that an office space in Mumbai is more expensive than Manhattan; ranking it as the world’s 15th most expensive city. There has been a lot of real estate investments in the retail and residential sectors in Mumbai and the growth of the IT and ITES sector is reflected in the real estate boom in the satellite city of Navi Mumbai.
Pune which has emerged as the IT, research and academic destination of India apart from being a major industrial belt is seen as a winner in terms of real estate investments.
IT and retail are key drivers of real estate in Pune that is witnessing its transition from a sedate industrial destination to a vibrant corporate city. With a wide range of population and service sectors to cater to and its close proximity to Mumbai has made Pune a hot destination for real estate investors.
Also the IT revolution in Pune has made it home to all major IT companies, both Indians and multinationals, making it today one of the most preferred IT /ITES and BPO investment destination in India. IT and ITES boom has given a big fillip to commercial space with demand touching 1.2msf annually.
Pune has witnessed frantic activity in the residential sector. To make most of this opportunity, several Pune developers like Kumar, Magarpatta Panchsheel, Kolte, Embassy etc have joined the race to develop township projects. The Magarpatta project is spread over 400 acres with IT, residential and retail developments.
Kolkata is another emerging city in the real estate investors list. Apart from offering lucrative business plans for investors in IT and retail sector, Kolkata is becoming one of the hottest cities for real estate investors as the city is witnessing resurgence in its economy after years of stagnation; into being the business destination of India.
Much of the credit for Kolkata’s emerging as the investment destination goes to the West Bengal government, which is promoting knowledge industry in a big way.
The IT boom in Kolkata is clearly evident from the huge investments by IT companies to set up their base in the city.
The 10,000 hectare Rajarhat is emerging as the next hot destination for the IT and ITES. More IT parks are also growing up in Kolkata with Ascendas, DLF, Videocon-Salarpuria, Bengal Intelligent Park, Technopolis, Infinity Benchmark, Infinity Waterside, Millennium and The Hub together set to create over 37 million square feet of space in Rajarhat and Sector V.
Hyderabad once famous as the city of pearls, Hyderabad is today known for it’s IT and IT Enabled Services, Business Process Outsourcing (BPO) firms Pharmaceuticals, Biotechnology and Entertainment industries. The city harboring a number of IT Parks have established themselves as the IT hub of India.
Hyderabad is a major center for pharmaceuticals with companies such as Dr. Reddy's Laboratories and is fast developing into a centre of biotechnology sector in India. Genome Valley and Nanotechnology Park are some of the upcoming projects. This sector is surely going to spur up the economy of the city with more companies willing to set up its operations in the coming years.
But as of now, IT and ITES sector attract the maximum investors to Hyderabad. Several MNCs have opened their base in Hyderabad and both Indian and global companies are changing from smaller operation to big operations. A few names among them are: Motorola, Google, Dell, Deloitte, Microsoft R&D India Pvt. Ltd., Wipro Technologies Ltd, Tata Consultancy services and Infosys Technologies Limited.
Bangalore over the years has transformed itself from being a ‘Pensioner’s Paradise’ to the ‘Silicon Valley’ of India. It is recently evolving into a R&D destination attracting real estate investors to cash on into the demand for residential and commercial properties in the cities. Riding high on the IT boom, Bangalore is maintaining its position as a prime destination for property investments.
The booming IT sector which is responsible for the real estate growth in the city has also collaborated to making it one of Asia’s fastest growing cities with annual growth rate of 3.5 percent. The city also accounts for more than 35 percent of the software exports of our country with largest number of software companies; which is the main driver of commercial property in Bangalore.
Chennai, the automobile capital of India has also developed into an IT and ITES hub in the recent years; mobilizing the real estate investors to take note of it as a promising destination of the future. The IT & ITES boom coupled with expats choosing Chennai as their operational bases has given a real boost to the real estate. The commercial real estate has been on the upswing as IT companies were the prime occupants of commercial spaces.
Areas with proximity to the IT/ITES hubs have emerged as localities with major demand for residential development in Velachery, Madipakkam and Tambaram to name a few. Prices have been significantly going up in southern Chennai because of its proximity to IT/ITES nerve centre and as the preferred locality of the expats.
Localities like Alwarpet, Boat Club, and Poes Garden have come up as upmarket residential areas. On the other hand, places such as Velachery, Mogappiar and Thiruvanmixur are the favourite spots for budget apartments.