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India’s Ten Hottest Property Markets

Dec 13, 2019 | 4 months ago | Read Time: 3 minutes | By iKnowledge Team
Property Markets in India: Top 10 Hottest Property Markets in India

The Indian real estate witnessed double-digit growth in launches of residential projects during the first half of 2018.

About 91,000 projects were launched in the real estate market between January and June 2018, an increase of 46 percent from the year-ago period, Knight Frank said in its research report [1].

The Real Estate market witnessed a rebound in the first half of 2018 compared to the year-ago time when it saw the introduction of new reforms by the Narendra Modi-led in the sectors like Real Estate (Regulation and Development) Act (RERA), The Benami Act among others.

“The Indian real estate market is expected to reach $180 billion by 2020 from $126 billion in 2015,” according to a research report by India Brand Equity Foundation.[2] “Emergence of nuclear families, rapid urbanization and rising household income are likely to remain the key drivers for growth in all spheres of real estate, including residential, commercial and retail,” it said, adding that it expects the housing sector to contribute about 11 percent to the nation’s GDP by 2020.

The increase in population and rise in demand for affordable housing is expected to push construction in the country and give a boost to the real estate sector.

Here are the ten cities driving growth in the real estate market.

Mumbai:

Mumbai’s residential market experienced the most substantial sales volume among all the cities. Growing at a rate of 128 percent per year. It accounted for a massive 40 per cent of the total units during January-June period of 2017.[2]

Bengaluru:

While the Mumbai residential market also experienced the most significant sales volume among all the cities, the most YoY growth was experienced by Bengaluru at 22 percent. The home-buyer in Bengaluru has been especially receptive to the relaxations in the qualification criteria for projects under the PMAY, such as interest subsidies and an increment of the area of 160 square metres for Middle Income Group – I and 200 square metres for Middle Income Group – II.[2]

Chennai:

The Chennai residential market now effectively holds approximately six quarters of inventory compared to the seven sections held earlier, which suggests of improving the state of the market. Buying interest was more inclined towards properties that are closer to completion and significantly in the affordably priced properties priced around Rs 25-40 lakh.[2]

Pune:

Pune witnessed a 78 percent rise in the number of units launched between January and June this year, primarily due to the low base during the corresponding period in 2017.[2]

Hyderabad:

Hyderabad witnessed a 44 percent rise in the number of units launched between January and June 2018, primarily due to the low base during the corresponding period in 2017.[2]

Kolkata:

The city which remained a hot real estate market till the first half of last year is now witnessing a decline in sales as homebuyers have primarily stayed away from under construction properties in the hope of a price revision in the upcoming months.[2]

Ahmedabad:

Due to its closeness to business areas along Sanand West and SG Highway, Ahmedabad in some time has been a preference among homebuyers, expressly by people with the white-collar profession.[2]

Noida, Gurugram and Greater Noida:

The new launches that were on a downward spiral since 2010 reached their nadir in 2017. New releases in the beginning half of the year 2018 have gone up by 90 percent when compared to the same stretch last year. With more inclination towards ready-to-move in projects and the structural change in the Indian Real Estate market becoming a reality, developers are cautious in launching new projects and are concentrating on completing their existing portfolios.[2]

Government’s Incentive

The Government of India has also been supportive of the property sector. Recently, the Union Cabinet has approved 100 Smart City Projects in the country. The Government has increased FDI limits for town and village development projects to 100 per cent. It has also issued guidelines for properties by Real Estate Investment Trusts (REITs) in the commercial segment.[3] To know about Aegon Life’s life insurance products like term insurance and other products, visit our home page.

Citations

[1] https://www.knightfrank.co.in/news/significant-rise-in-residential-launches;-office-records-robust-growth-in-h1-2018-%E2%80%93-knight-frank-india-real-estate-report-012642.aspx

[2] https://www.ibef.org/industry/indian-real-estate-industry-analysis-presentation

[3] https://www.ibef.org/archives/detail/cHJlc2VudGF0aW9ucyYzNzc4MyYzODA=       


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