In Mumbai,
the Maximum City developer, returns are falling drastically. A huge garment
exporter wanted to invest in the real estate. However, with the situation like
this, his wealth manager advised him to invest in Adayar – some 1,300 km away
in South Chennai which is considered to be the city’s most luxurious
neighborhoods. It is stated that it has given a profit on real estate
investment of a massive 110% in the past five years. For instance, if someone
has invested Rs 1 crore in an apartment in 2008, it would have now fetched above
Rs 2.2 crore.
According to
Deepak Parekh, the chairman of HDFC Ltd., India's leading housing lender stated
that houses in Adayar may become much costlier over the next few years. He also
stated that Chennai had overtaken Mumbai in their portfolio this year. Chennai is
quickly developing into a manufacturing center. Many industries have set up
factories here. Carmakers like Hyundai, Ford and Renault-Nissan too have set up
factories there. New opportunities are being created in the city by large
telecom and IT industries making big investments. According to him, such a
trend will lead to growth in home demand and prices will surely shoot up.
According to
the analysts, those who have money should consider investing in properties in
cities like Adayar, Surat, Baroda, Rajarhat in Kolkata, Gandhinagar, micro
markets in Pune such as Kharadi and Hinjewadi and new up-and-coming locations
in NCR. These properties are now available at a lesser price now but will shoot
up once the economy surges. It is believed that those who have invested in real
estate in the micro markets in 2008 made more money as compared to investments in
stocks or gold. The Bombay Stock Exchange's 30-share yardstick index, Sensex, reached
a meager 16% during such time. It is stated that gold might have given over
155% returns over the past five years, but feat over the last two years stands
at 17% against an average 20-50% rise in property prices. Moreover, the
property markets such as NCR, Chennai and Pune were under-priced. They had to catch
up with rest of the markets that had already shooted up.
Sandeep
Madan, a New Delhi-based high net worth person investing in real estate projects says that places around Yamuna Expressway and the stretch from Delhi
airport to Najafgarh might offer best returns over the next 5-7 years. There
are many factors that affect the demand scenario such as the growth in
infrastructure, saturation levels, employment opportunities and affordability.
They will continue to rule the demand scenario. It also applies to markets that
have performed well until now.
Due to the
recent issue of Telangana, Chennai property market has gained. This is because
of the fact that many IT companies from Hyderabad moved out which pushed the
real estate prices higher.
