South India & North India – Real Estate

India’s rapid urban development and infrastructure along with increasing living standards have caused the demand for real estate to rise steadily. Real Estate in India is also an industry with very high NRI investment potential. Developed cities across India like Mumbai, Bangalore, Chennai etc. are a few of the favourite spots for investors.

According to India Brand Equity Foundation, India’s real estate sector is expected to touch a US$ 1 trillion market size by 2030, accounting for 18-20% of India’s GDP.

Considering the possibilities in the real estate industry in India, it is important that you know how the sector behaves across the country, from North to South, and what the future holds for the industry.

South India remains the most desired region for investors in real estate. The rise of metro rails and continuously developing public transport systems contribute to the changes in the economy. The south is also witnessing a strong boost in its IT sector and start-ups.

Higher availability of land at reasonable prices, excellent social infrastructure and increasing NRI investments are found to be boosting factors for the real estate industry as well. South Indian consumers are found to be more experimental in their purchases and spend more on average.

North India, on the other hand, is a relatively price-sensitive market and the consumers tend to be more materialistic and status-conscious as compared to the South. The rapid development in the region keeps the real estate sector strong.

As a whole, Indian consumer behaviour has changed from value-for-money-based consumption to money-for-value-based consumption. People now flaunt what they consume instead of inconspicuous consumption. This is a result of high economic growth, infrastructural development and increased living standards.

Real Estate – North India

The growing spots for real estate in North India are

Delhi NCR

Infrastructure and development are the backbone of the real estate industry. New airports proposed under the government’s UDAN scheme will yield high results in terms of connections and investments. Some of the quick-developing areas in the NCR are:

1. Noida Extension
2. Greater Noida
3. Yamuna Expressway
4. Dwarka
5. South Gurgaon

The rise in IT companies, banks, etc. has also contributed to the real estate sector in the area. We can see a rise in rentals as well as the quality of the services provided by consultants.

Mumbai

Mumbai has always been a favourite spot for real estate investors due to its recognised position globally in relation to resources and the economy. The rapid growth of Navi Mumbai is also to be noted. There are multiple development projects under progress in the city which makes the city highly valuable for investors as well as buyers. 

A few top sites for investment in Mumbai are:

1. Ulwe Real Estate
2. Panvel Real Estate 
3. Kharghar Real Estate

Kolkata

Recent trends in the real estate industry in Kolkata show that people are looking to buy or upgrade to larger houses. The most demand is found to be for plots of 900 sq. ft to 1800 sq. ft. So, investing in plots in Kolkata is expected to give high returns.

Some areas where we can see developments in infrastructure and facilities are:

1. New Town Real Estate
2. Rajarhat Real Estate
3. Southern Bypass Stretch Real Estate

They are currently the best places for real estate investment in Kolkata.

Lucknow

Lucknow is considered an emerging hotspot for the real estate industry due to its rapid development and huge investments. Apart from the cultural richness and infrastructure development, the expansion of the Lucknow Metro is going to enhance its already existing connections with other major cities in the country. Realtors believe the city to become the epicenter of real estate in North India. 

Real Estate – South India

Current South Indian real estate hotspots are

Bangalore

Bangalore is a city favored by investors nationally and internationally. Its IT hubs, ideal climatic conditions, smart infrastructure, rising population etc. are some of the reasons for this. There is also a high availability of ready-to-move-in properties in the city.

The key micro-markets include

1. Whitefield
2. Electronic City
3. Hebbal
4. JP Nagar
5. Yelahanka

Hyderabad

Hyderabad was ranked second in the most rapidly growing cities among 131 cities across the Asia Pacific Region, in a study conducted by JLL. Demand from immigrants, IT professionals etc. and affordability of properties are what make the real estate market in the city desirable.

The key micro-markets include

1. Nizampet
2. Manikonda
3. Kondapur
4. Gachibowli
5. HITEC City

Chennai

Ranking in one of the topmost metropolises in India, Chennai offers a wide range of housing options under all budget ranges. The dip in the sector during the Covid-19 pandemic is smoothened and the city has become a favorite of investors again.

The key micro-markets include

1. Medavakkam
2. Madipakkam
3. T Nagar
4. Perambur
5. Avadi

In Summary

While consumer behavior and affordability vary, there is no excess difference in the real estate sector between the North and South. India is constantly undergoing boundless changes in its economy and infrastructure, which makes the country a great place for investment.

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