Best Indian cities to invest in a residential property this festive season

 

As the real estate market picks up post the COVID-19 pandemic, 2021 promises to see more demand than ever. The stagnant property prices in the major Indian cities have begun to take a positive turn while attractive offers and discounts have also emerged. Homebuyers can get the best result out of this situation this festive season with the option of deferred payments and banks offering the lowest home loan rates in a decade with some also foregoing charges. 

Major banks like State Bank of India, Kotak Mahindra Bank, Punjab National Bank, Bank of Baroda are among the banks who have slashed their home loan rates by around 15-60 basis points to 6.5% or 6.7%. This has buyers and investors excited with 35% of urban Indians between 25 and 44 years old planning to invest in real estate over the next six months, as found in a survey.

With all this in mind, let’s take a look at which Indian cities are the ideal location to make the most of these investment opportunities.

Navi Mumbai

Navi Mumbai has been seeing a steady growth in terms of real estate opportunities and it only promises to grow further. The upcoming Navi Mumbai International Airport, expected to be completed by 2024, will catapult real estate appreciation in the city. Additionally, CIDCO’s housing scheme will provide 90,000 flats to homebuyers in the Economically Weaker Section (EWS) and Middle-income Group (MIG).

Pune

This major Indian city drives 13% of Maharashtra’s GDP and is also the 3rd largest contributor to India’s IT exports. This megacity is constantly developing to greater highs in terms of connectivity, technology, and industry.  Pune has been consistently providing employment across sectors including IT, financial services, and manufacturing. Over 18,000 newly launched projects emerged just in the 1st quarter of 2021 with around 75% increase in real estate sales. There is no better signifier that Pune offers an exciting return on investment to home buyers.

Shapoorji Pallonji Vanaha – Book 1, 2 & 3 BHK flats in Pune amidst 6 acres in Pune, starting at Rs.37.5 lakh.

Thane

Thane offers the dual benefit of excellent accessibility to Mumbai along with affordability to real estate investors. This area has seen a steady expansion of commercial as well as social infrastructure, leading to great appreciation and rental yield with an increase of 20% in the 1st quarter of 2021. The upcoming metro project will only improve the connectivity to Thane and reduce traveling time by 50%. There is also the upcoming Kalyan business district to bring employment opportunities to the area.

Shapoorji Pallonji Northern Lights – Book 2 BHK Flats at Pokhran Road 2, Thane West starting at Rs.1.27 Cr.+*

Bangalore

This industrial and employment hub has been gradually improving in the real estate market as well. It accommodates leading IT giants like Infosys, IBM, Google, Wipro, and more. In addition, it has also seen an 18% increase in real estate sales in the first quarter of 2021, as per the India Residential Market Update – Knight Frank Report.

Shapoorji Pallonji Parkwest 2.0 – Book Luxury 2 & 3 BHK Apartment in Binnypet, Bengaluru starting at Rs.1.25 Cr.* and Rs.1.85 Cr.* respectively.

Chennai

This city has seen over 4,500 new housing units including those by A-grade developers just in the first quarter of 2021. This coupled with the availability of discount deals and low-interest rates has resulted in a surge of real estate purchases. The new Chennai-Bangalore highway being planned by the National Highways Authority of India (NHAI) will reduce the distance between the cities by 50-60 km. 

Hyderabad

Apart from being a major center for the tech industry, Hyderabad is one of the most affordable cities for investments with great infrastructure. It also has excellent connectivity through a network of highways like NH-163, NH-765 NH-44, NH-65. The state also has 56 notified Special Economic Zones (SEZs) which are the highest in India of which 34 are operational which are the 2nd highest in India. Considering this entrepreneurial hotspot, low cost of living, excellent connectivity, there was an 80% growth in real estate sales here.

Ahmedabad 

This city has a real estate growth of 2-4% each year and, following the halt during the pandemic, capital and rental values have now started to increase. The city has a robust public transport system and it is set up to become among the first 20 smart cities in India. AUDA (Ahmedabad Urban Development Authority) also plans to develop 6,800 hectares in the periphery of the city which will eventually provide plenty of residential opportunities.