Despite the real estate sector going through a rough patch for almost an year, it still makes sense to invest in properties which promise a long-term return.
“The global share markets are quite volatile, and despite India’s positive mid-to-long term economic outlook, it is not untouched by these choppy waters. A lot of hard-won investor wealth has been eroded in the recent past. In these uncertain market conditions, it makes sense to regenerate one’s faith in real estate investments which can fortify and enhance capital,” says Ashwinder Raj Singh, CEO – residential services, JLL India.
Investors can reap in impressive rewards if they choose a good destination along with a reliable developer after a good research on the city and its market.
Shortlisting and selecting a property is a one time process, but considered to be a time-consuming exercise. The city one should invest in should be identified through its economic drivers.
With the help of real estate players, we identify nine cities in North India that are great investment options due to their locations, infrastructure, healthy investment climate for industrial and related activities, and are affordable too.
Affordability quotient plays an important role in investor’s decision and is a major catalyst in driving realty demand.
Experts, however, put a word of caution before investing in these five cities. “It is important for the investor to choose the right asset class, partnering with the right developer, making sure projects have obtained approvals, economic pull factors which will drive future growth in a location, return expectations in terms of rentals and capital appreciation – and, very importantly – the right investment horizon, ” Santhosh Kumar, CEO – operations & international director, JLL India.
Santosh lists Gurgaon, Noida, Jaipur, Neemrana and Lucknow as best cities to invest in North India as he believes most of these cities are witnessing good development, investment in infrastructure, and have a good existing or developing economic base which is or will attract more people, thus driving the need for real estate. Jaipur and Lucknow are capital cities and enjoy good investments into infrastructure by the state governments, while also enjoying good connectivity and have seen healthy investor participation, albeit largely in the residential sector.
Infrastructure makes a city worth investing and also drives the real estate growth. Vikas Malpani, co-founder, Commonfloor finds Bhiwadi, Jaipur, Ghaziabad, Delhi (L-zone) and Faridabad as good investment picks in North India as infrastructure is one of the major factors that is driving real estate growth in most of the mentioned cities.
Malpani adds Delhi Mumbai Industrial Corridor (DMIC) passes through various existing industrial clusters and towns and cities that are likely to become investment hubs. Bhiwadi, Ghaziabad and Jaipur are seeing the impact of this corridor. Moreover, all the identified cities are also witnessing the impact of the industrial development in and around the regions. Additionally, property prices in these cities are relatively affordable.
He identifies prime factors that make Bhiwadi and Jaipur worth considering for investment. “Bhiwadi, an emerging industrial and real estate hub adjoining Gurgaon is well connected with highways such as NH-8 and NH-71B. The proposed Neemrana airport in the vicinity is expected to give a boost to the realty sector. Moreover, it falls along the Delhi-Mumbai Industrial Corridor, which makes it a promising destination for property investment. Unparalleled connectivity and round-the-clock infrastructure development are two parameters of growth in the Jaipur. The advent of the metro and the ‘Smart City’ label has added to its advantage.”
The proposed Metro connectivity with other parts of NCR and two industrial zones in and around the area are expected to give a major push to the realty sector in Ghaziabad in the coming months. L-Zone in Delhi is situated in a strategic location in the south west of Delhi with close proximity to Dwarka, Gurgaon and IGI Airport. Low land prices and DDA’s Land Pooling policy are expected to be the major growth drivers of this region. Realistic property values, good connectivity coupled with upcoming infra upgrades, has put Faridabad as the next hotspot in NCR. It enjoys connectivity to other cities such as Mathura, Palwal and Agra via NH-2.
All these cities offer several real estate options to invest in. What is needed is a well-timed and properly researched real estate investment for good returns and avoid a bad decision. Thus, it is crucial for buyers to check past record of developer, get the property papers verified by a legal expert and compare prices with other builders’s properties to make an informed and sound decision.
Resource: http://www.financialexpress.com
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