In the last few years, the real estate market has faced major hurdles. The RERA Act ( Real Estate Regulatory Authority) is in place now reviving and attracting a major chunk of investments. The major cities in India are able to contribute a lot to this industry. The active markets offer low risk, high liquidity and are characterized by active commercialisation with higher investment returns.
This has given a rise to rental properties but has lower vacancy and exit risks. The emerging markets offer high investment returns with increasing liquidity and higher exit risks. Due to urbanisation and migration of people from city to city for better livelihood and work opportunities real estate investment is skyrocketing.
If you are interested in investing in the real estate market to make a wise decision you can categorize cities into active, emerging and dormant markets.
The first category cities would be Delhi-NCR, Mumbai and Bangalore. While the second category would consist of the cities like Pune, Hyderabad and Chenna. Kolkata and Chandigarh would come in the third category for investment.
Real estate investment should be a medium to long term investment plan if you want to enjoy the fruits of it. Considering the location is the most important thumb rule applied worldwide in the real estate industry.
In influencing the real investment decision various factors play a major role. It's a financial decision, it has to be favourable, benefiting you with positive and profitable returns.
Consider the factors like the city, locality, civic amenities, infrastructural development, price per square meter and clarify all the other concerns if you have any.
Here are the few best cities to invest in real estate in India
1) Mumbai
Mumbai has always attracted people to shape their dreams and the city is driven with power, glamour and wealth. Mumbai city marks its position 20 in the list of most expensive real estate markets in the world.
It is worthy to make investments in the city as it is one of the fastest-growing cities in the world. Navi Mumbai and Thane are the adjacent neighbourhoods with relatively affordable investment opportunities.
The other suburbs like Chembur, Goregaon and Ghatkopar West have seen a huge demand because of good connectivity all because of the Metro and the Eastern Freeway which is a recent infrastructural addition.
Similarly, an area like Navi Mumbai is also a great place to invest in, as it boasts the well-planned nature, civic amenities and proximity to Mumbai. Several IT companies, health care centres and recreational centres like parks, shopping malls and entertainment centres are setting up in suburbs like Airoli and Vashi, is making Navi Mumbai a hot destination for investment.
These markets have seen significant growth in capital appreciation of the properties as well as sales velocity in the recent past.
2) Pune
Pune’s real estate market is picking up swiftly. Micro markets such as Kharadi, Hinjewadi and Balewadi are the most sought-after locations and offer a range of residential property options.
Pune is famous as an educational and IT business hub of India. Pune is blessed with beautiful weather all year-round and infrastructural development has contributed to the popularity of rising in demand for real estate sales.
Properties in Pune have a great return on investment and have created wonderful investment opportunities from migrants not only from the cities in India but for NRIs as well. Other localities such as Kalyani Nagar, Koregaon Park and Deccan have always been a great choice for real estate investment. The exponential growth in the last few years has made Pune one of the best real estate investment cities in India.
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3) Hyderabad
After Bangalore, Hyderabad is another booming IT hub in India. Hyderabad is a perfect combination of old India and well-developed India. Builders across India have launched their projects in Hyderabad creating an ever-increasing demand for real estate properties. Few best locations to invest in Hyderabad are Kokapet, Nanakramguda, and Gachibowli.
The prices of the properties suit the pockets of double-income families from the working class of the information technology sector. The commercial and retail hubs are seeing sales velocity and capital appreciation at a greater pace.
4) Delhi NCR
New Gurgaon and Noida are the key micro markets in Delhi offering high Return on Investment
in the real estate industry. The commercial market has witnessed more than 65% growth last year. Delhi and NCR both are attractive markets offering great real estate projects. Uttam Nagar and Dwarka are popular investment destinations because of improved metro connectivity and relatively lower property rates.
With two metro stations, Rohini is also a favourite destination in the Delhi market. Being the capital of India, both residential and commercial real estate are bright investment opportunities.
5) Bangalore/Bengaluru
Bangalore is known as India's Silicon Valley as its a startup capital of India best known for the IT Industry boom. Being one of the best cities in India, the real estate rates are quite affordable in Bangalore.
The booming IT sector in Bangalore will make an investment quite difficult in another two to three years. The southern and eastern parts of Bangalore have gained investments from a lot of NRIs over the globe.
The prices for the residential properties around Whitefield and Electronic City are on the rise giving the best deals to meet customer needs. Some locations like Hebbal, Krishnarajapuram, M, G Road, Indira Nagar, Lavelle Road are developing at a fast pace assuring good return investment for the investors.
The CREDAI report states that residential property sales in Bangalore saw a jump of 35 per cent in 2018 compared to 2017. The metro projects have enhanced South Bangalore’s attractiveness.
To Conclude...
Just like any other financial investment, it is equally important to consider all the factors before investing in real estate in India. Compare every top city mentioned above and make the investment decision as per your what suits you the best. A real estate investment will help you get a steady cash flow, substantial capital appreciation, and tax advantages making it a sound investment from all the aspects.
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