Real Estate investment has always been a lucrative option. It still attracts a lot of investors for building on wealth as it promises good returns. Real Estate covers:
- Housing sector
Indian Real Estate sector is also a good option for NRI investors as there is a lot of scope and potential for growth in a large number of Indian Cities.
There are many factors which influence Real Estate Investment Decisions:
- Political Stability
- Infrastructural growth
- Connectivity of a place to airports and other major cities
- Government Policies in General and Particular for the area – ease of business, transparency, speedy disposals of proposals etc.
- Tax benefits
- Quality of Life – Basic Amenities, Education and health facilities
- High paying jobs – more beneficial for investment in the housing sector
- Migration – Inflow of people
- Prospects for future development
- Emotional bonding with hometown – the special reason for many NRIs as they want to create an asset in their hometown to settle down after they come back to native place
When it comes to choosing cities for Indian Real Estate Investment, Delhi, Mumbai, Chennai and Kolkata has always been a favourite. They have had their share of growth and development. There is saturation in the property market. The possibility of future growth is limited. Now their periphery area is attracting investors, eg. Navi Mumbai.
Recently, the Tier II Indian cities are attracting real estate investment, as:
- Government’s efforts: Indian Government’s Smart City projects under which they aim to develop Tier II cities by providing core infrastructural facilities, a decent quality of life and clean environment besides smart solutions. Economic decisions like GST and regulatory authority like RERA which has brought transparency and accountability are also boosting investment.
- Property is available at affordable price and high Rental Income
- Improving Infrastructure, health facilities and educational institutions
List of top most Indian Cities for Real Estate Investment with reasons:
- Bangalore – Infrastructure, Connectivity, IT sector induced demand
- Chennai –Rising demand due to fast-growing economy (manufacturing, health, automobile, technology sector), Affordable property rates and good rental rates.
- Mumbai – areas like Thane and Navi Mumbai enjoy proximity to Mumbai, Employment Opportunities, and demand for residential accommodations.
- Pune- Lot of migrants in the IT sector has drawn steady demand for further investment
- Hyderabad – Presence of IT employees raises demand in housing and retail sector, Connectivity to Airport and State Government facilities for investors
- Kochi – Government’s initiatives like single window clearance, discounts to NRIs for investing, better infrastructure, educational Institutions drawing migrants, all are leading to property sector growth.
- Ahmedabad – Employment Opportunities, Improved Infrastructure, demand for houses, Transparent and easy procedures
- Bhiwadi – City is catching up for Investment. Proximity to Gurgaon and International Airport, IT sector presence, Affordable prices, Infrastructure are an advantage.
- Thiruvananthapuram – Growing IT sector, City’s tourism potential, Infrastructure, Healthy Lifestyle.
- Coimbatore- City is close to many tourist destinations, upcoming infrastructural facilities, growing service sector including IT firms, Flourishing manufacturing and retail industries.
In case of NRIs, besides, the monetary reasons, emotional connection with their hometown for settling down in the future is also a major factor which drives their real estate investment decisions.
Indian Real Estate holds a lot of promises for good returns on investment.