The Indian real estate has certainly come of age. In fact, it is a step closer to becoming more mature, transparent and professional and one which will yield realistic returns over a period of time. Interestingly, like many western markets, the investors here have also become more realistic in their expectations of the returns on investments. This is certainly a positive sign for future growth.
So, are you in a dilemma as to whether you should invest in real estate in 2017 or not?
Well, frankly speaking, there couldn’t be a better time than this! Amidst all the positive policy changes like RERA, GST, Benami Act, among others, the sector is on its way to an upward trajectory. Hence, ‘now’ is the best time to invest.
But, if you are confused where to invest then let’s take a close look at some of the hot destinations in India which are likely to yield good returns on your investments in 2017.
1) MMR: Badlapur Region Gaining Momentum
After residential developments in Thane and Kalyan, Badlapur region seems to have become the next hotspot for real estate activities in the MMR. Affordable property values coupled with constant infrastructure upgrades have significantly boosted the realty prospects of this region. It includes areas such as Badlapur East and Neral-Badlapur Road.
In the last two years, entire Badlapur region has seen the new launch supply of nearly 9,000 units (as per market data). Interestingly, nearly 99 per cent projects had affordable units. With a plethora of new launches and under-construction projects, this region will see about 84 per cent ready-to-move-in supply by 2017
2) Kolkata: Realty Focus Shifts to North
Eastern markets have always been on the forefront in Kolkata’s real estate. However, the year 2016 took an interesting turn with maximum new launch supply in the northern markets of the city.
As per market data, Kolkata saw launch of approximately 13,200 new units in 2016. And interestingly, out of the total units launched, nearly 50 per cent was in North Kolkata. Affordable property values and various infrastructure projects have largely helped micro-markets in the North.
In terms of market segmentation, nearly 74 per cent units launched were in the affordable category, followed by 19 per cent in the mid-segment and merely 7 per cent in the premium segment. On an average, capital values in the northern markets fall in the price brackets of Rs 1,800-2,700 per sq.ft.
Uttarpara, Dankuni, and Jessore Road were three major markets in the North that saw healthy new supply in 2016. In terms of numbers, about 2,400 new units entered Uttarpara, while in Dankuni and Jessore Road about 2,400 and 850 units entered respectively.
3) Chennai: Western region Gaining Momentum
Chennai’s real estate growth story has been written primarily around either Old Mahabalipuram Road or East Coast Road. Besides cities like Bangalore and Kolkata, Chennai also saw an interesting shift in trend this year.
As per data, new launch supply in both South and West Chennai was at par. Just to throw a number, out of the total supply in the city, about 48.1 per cent was in the southern part while 48.2 per cent in the western part. The major micro-markets in the region are Oragadam, Vadapalani, Vanagaram, Poonamallee, and Iyyappanthangal.
As per the market segmentation, the region is primarily dominated by affordable properties (41 per cent), followed by mid-segment and luxury with 40 and 19 per cent respectively.
4) Delhi-NCR: Greater Noida Leading the Show
Thrown open to public in 2011, the Buddh International Circuit placed Greater Noida on the global map. And with realistic property rates and several infra projects on the anvil, it has never looked back. Moreover, Greater Noida enjoys strategic location, excellent inter and intra-city connectivity and ample green space. Further, due to the presence of several manufacturing and automobile ancillary units, the city is witnessing robust growth.
In terms of data, Greater Noida is clearly leading the show as far as maximum new supply is concerned. From January till November, NCR recorded new supply of about 29,700 units, out of which nearly 24 per cent was in Greater Noida. Few of the prominent projects launched were Le Solitarian Estate, Aarcity Foreste, Migsun Wynn, Galactic City, among several others.
5) Hyderabad: Gachibowli and Manikonda see high activity
Relatively lower property prices coupled with various infrastructure upgrades has significantly helped Hyderabad attract a lot of real estate investments over the last two years. Also, there has been increased commercial activity ever since the state bifurcation happened. While several micro-markets saw decent new launch supply in 2016, these two markets in the western region maintained their monopoly over the residential new launches.
Gachibowli and Manikonda saw maximum new residential launches over the past two years. In the last three years, nearly 6,900 units have entered Gachiblowli alone while Manikonda has seen about 1,600 new units in the last two years. Good connectivity, robust infrastructure and presence of IT/ITeS companies in the vicinity are the three major factors catalysing demand in these areas.
Interestingly, both Gachibowli and Manikonda have also recorded decent price appreciation in the last few years. In 2012, the weighted average price in Gachibowli and Manikonda was Rs 3,740 per sq.ft. and Rs 2,400 per sq.ft, which increased to Rs 4,084 per sq.ft. and Rs 3,130 per sq.ft. respectively in 2016.
6) Bangalore: Northern residential market takes a leap forward
While majority of the new launch supply in 2016 was seen in southern and eastern micro-markets, it is interesting to see significant activity happening in the Northern region. Micro-markets such as Hennur Main Road, Thannisandra Main Road, and Vidyaranyapura have recorded a healthy new launch supply this year. Proximity to the international airport and tech parks (like Manyata Tech Park and Kirloskar Tech Park) have significantly upped the ante of northern region.
As per market data, in the first three quarters of 2016, North Bangalore saw the new launch supply of approximately 7,200 units. Also, there are about 54,900 under-construction units in the North which further indicates that the region will see a lot of ready-to-move-in supply in the coming years. To be precise, nearly 35 per cent projects will be ready-to-move-in by 2017.
In terms of market segmentation, mid-segment properties dominate the property spectrum in the North with 51 per cent. This is followed by 28 per cent projects in the affordable segment, 12 and 9 per cent in luxury and ultra-luxury segment respectively.
Research Desk @ Bluering Realtech 