The year 2016 is considered as a landmark year for the Indian real estate sector in terms of major policy changes. The game-changing policies like the RERA, GST and the Benami Transactions Act, to name a few, promise to usher in more transparency and professionalism in the sector. More importantly, while 2016 was the year of announcements, 2017 is expected to be the year of implementation of these policies. Hence, it is anticipated that the realty sector will see major growth in the coming year and those NRIs who have been waiting to explore the Indian horizon for investments must take the plunge.
So, let’s take a close look at the top three Indian markets that are likely to give you good returns on your investments in 2017.
A world of luxury and grandeur beckons Pune. So, those NRIs who wish to invest in luxury properties, Pune could be your dream destination. Interestingly, unlike other cities that recorded new launch supply of relatively small-sized projects in the affordable or mid-segment, Pune observed some large-scale residential projects in the ultra-luxury segment. And the property prices are also relatively cheaper than the other metro counterparts including MMR and Delhi-NCR.
As per market data, in 2014-15, the average number of units in ultra-luxury projects ranged between 30-40, which significantly increased to an average of about 100-120 units in 2016.
Moreover, commercial activity in Pune picked up significantly in 2016 with increased office space absorption this year. Besides housing leading multinational companies, the “pensioners’ paradise” is also gradually transforming into a start-up hub with as many as 1107 start-ups, as per data by angel.co. Thus, Pune is seeing a major trend shift with growing demand for aspirational lifestyle. Cashing on this, several leading developers have launched premium projects in 2016. Majority of these projects are in prime locations such as Hinjewadi, an IT destination where the upcoming Rajiv Gandhi Infotech Park is attracting IT giants. Also, the units on offer are in the average size range of about 2,200-3,380 sq. ft.
Other affordable areas that NRIs can consider for investments include Talegaon, Pimpri and Pimpri Chinchwad. Being one of the largest auto and auto ancillary hubs of India, Pune is an attractive investment destination for many NRIs.
Increased office absorption coupled with improving infrastructure has significantly helped Hyderabad to attract lot of real estate investments in the last two years. And the two micro markets that have seen maximum real estate activity include Gachibowli and Manikonda. In fact, while other micro-markets have seen decent new launch supply, these two markets in the western region have maintained their monopoly over the residential new launches.
Over the last three years, nearly 6,900 units have entered Gachibowli alone. While Manikonda has seen supply of 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 seen 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. respectively. This increased to Rs 4,084 per sq. ft. and Rs 3,130 per sq. ft. respectively in 2016. Hence, these two areas can be a good bet for NRIs waiting to invest in India.
Buoyed by immense commercial activity in 2016, Bangalore is once again seen as a major investment destination in India. Interestingly, while East and South Bangalore continue to drive growth due to IT/ITeS but North Bangalore has also seen significant activity in 2016.
Micro-markets such as Hennur Main Road, Thannisandra Main Road, and Vidyaranyapura have seen a healthy new 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.
Besides new-launches, market data also indicates that there are about 55,000 under-construction units in North Bangalore. This indicates that the region will see lot of ready-to-move-in supply in the coming years. To be precise, nearly 35 per cent projects are expected to be ready-to-move-in by 2017. Moreover, North Bangalore is dominated by mid-segment properties with nearly 50 per cent projects in this segment, followed by 28 per cent projects in the affordable, 12 and 9 per cent in luxury and ultra-luxury segments respectively.
Therefore, those of you who have been waiting to invest in India may do so in 2017. But, a word of caution. Don’t simply get lured by offers and freebies. Instead, let us help you in finding the right property at the right place!