The supply of quality housing even today is confined to eight key cities. It is not that the new cities are not coming up, but neither the investors nor even the end users want to buy a house in Tier II cities today. The dream and aspiration is always Delhi, Mumbai, Bangalore, Pune kind of life.
Are the CBDs really losing out as the benchmark of economic activity in the major cities of India? Well, if only Gurgaon business destinations as against Connaught Place or Nehru Place in Delhi-NCR are any indication, or if only BKC and Navi Mumbai as against Nariman Point in Mumbai is any indication, then the CBDs have lost a significant ground by all means of reputation and economic scale.
It is the roll out of the policies by the respective urban bodies that have been behind the BKC emerging as a case study of urbanisation with booming economy while Noida ending up as a ghost city sitting over piles of unsold housing stock. Both the markets nevertheless had the tremendous potential in its early stage of inception.
The proposed Delhi Mumbai Industrial Corridor (DMIC) also promises to change the Faridabad landscape opening floodgates of opportunity. The DMIC stretch that touches Faridabad-Palwal is poised to open floodgates of economic opportunities with world class infrastructure at the doorsteps of Faridabad.
Las Vegas, London and also Ghaziabad in the same league! Believe it or not but the western hinterland of Uttar Pradesh was chosen to be having the potential to be among the 10 most dynamic cities of the world. A Newsweek survey, which put the city on the global map, said so as early as in 2006, but since then it seems the city has weathered many challenges in its quest for glory and fame as an urban metropolis city.
As per the data available with Track2Realty, the real estate think-tank group, Bangalore rental yields are highest in the country. It is range bound between 3-4 per cent, depending upon the location. The property prices are still much lower than many other cities, including the financial capital of India, Mumbai, or the Delhi-NCR market.
Most of the homebuyers as well as the other stakeholders of India’s housing market share the sentiments of this homebuyers. The Reserve Bank of India has indeed surprised many while keeping the repo rate unchanged at 6.25 per cent at the beginning of the new fiscal year. Even a symbolic rate cut would have helped the market change its outlook towards the economy.
Bangalore has become a hub for NRIs & HNIs. Bangalore has a large base of expatriates who live in the city and working abroad, families of these residents are well travelled, cultured and have sophisticated tastes. Growth in the IT Industry and a rapidly increasing number of High Net-Worth Individuals and movement of expatriates has brought Bangalore real estate in to prime focus for NRIs
In terms of pure economics renting out a property as against buying it may sound to be logical due to poor rental yield across India, the market reality beyond fiscal prudence is not that simple. In most of the Indian cities the tenants have to pass through a number of uncomfortable questions ranging from food habits to personal lifestyle choice before they can get a rental property for living. The process itself is very tedious and prone to leave grey zones.
Goregaon is gradually scaling up as luxury destination at the price of premium locality. Most of the new offerings are in the BHK plus and the analysts tracking the local property market are apprehensive that due to the short supply of smaller units the prices may hit the roof pretty soon.