A closer look at some of the leading property markets of the country, like Mumbai, Pune, Chennai, Hyderabad and Bangalore, clearly suggest that the market is poised for an upswing in the next few years. More importantly, it is not just the analysts but also the home-buyers who are today; ready to bet high on the long term growth story of the property market in these leading cities.
The anticipation of the international airport has been behind the property purchase in the region. The investors in this part of the world are hence forced to tavel to one or two hours to Mumbai for their domestic and international flights. The ordeal is unlikely to be over in the next three to four years till the Navi Mumbai International Airport actually takes off.
A high rental growth was seen mostly in South cities like Bengaluru, Chennai and Hyderabad where y-o-y change ranged between 8-17% at some locations. In H1 2017, Bengaluru and Hyderabad both witnessed single digit vacancy levels hovering between 8-9% due to a dearth of quality Grade A stock, thus leading to increased rental values in some micro markets.
Be it Mumbai or Pune in the Western part of India or Hyderabad, Bangalore and Chennai in the South, the homebuyers seem to be convinced with the reality of GST and its implications with various stages of construction. It is hence not surprising that most of the homebuyers across the cities today wish to invest in ready to move apartments to save from the hassles of paying the GST.
There are very few case studies where the developers have flocked out to cities on sheer promise without registering their presence in the four metro cities. However, such migration to magnet territory is today quite visible in Gujarat where the developers from other states are increasingly flocking, most notably in the city of Ahmedabad.
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Indirapuram has been the introduction of Delhi-Noida-Ghaziabad to modern living that was till then the privilege of only the luxury buyers of Gurgaon. Most of the residents of Mayur Vihar, IP Extension and adjoining areas of Delhi were exposed to the modern urban housing with club, swimming pool and other high-end amenities in this market. Other residents of Noida and Ghaziabad had till then availed only the plotted developments and apartment with amenities was introduced to them here only.
Real estate is the best bet against an inflation hedge as it is the only asset that loses little value in periods of rising prices. Thus, it holds its value and purchasing power even during inflation. Normally inflation has a co-relation with the booming economy and an investor also buys this asset to hedge against inflation.
Ever since the Jewar airport has been given in-principle clearance there has been the last ditch attempt by the developers of subdued property market of Noida and even Ghaziabad to make the best of it. They have suddenly started firing all cylinders with marketing overdrives. It seems the airport is the marketing mantra of survival amidst a prolong spell of slowdown and sales drought.
From online presence to virtual tour of the property, and digital advertising to sponsored games & other connecting platforms, the developers are not leaving any stone unturned to touch base with NRIs.