Indian Real Estate: Swinging High

Indian Real Estate: High Return Seduction Real estate prices in India continue to remain at an all time high, quite beyond the reach of many except for a few of Fortunes Favourites. The last year has witnessed a doubling in the capital value of real estate in most cities, and interestingly the increase was not confined to developing suburbs, but saturated areas as well, with their limited choice options. Real estate and property consultants continue to predict upward swinging land prices affirming the boom as a stable long-term trend. They attest there are more end users rather than speculators and short-term investors, who are snapping up deals for a room with a view. In large part, it is, also, driven by IT / ITES and foreign direct investment, as in the case of EMMAR-MGF's ambitious project scheduled to come up in Mohali. Given that the real estate prices in India are looking fairly upbeat, as an investor or an end-user looking for the ideal city to call home or base a new business venture, a look at the various metropolises might help zero in on a city that offers the most. Chandigarh Cleaner and eminently more liveable than any other Indian city, the Chandigarh real estate market is peaking, while scaling new price highs every day. Escalation of land costs by almost 40% in the last few months is mostly due to high IT / ITES demand, as well as, the enforcement of the Punjab Apartment Ownership Act in Mohali this year. Despite a 100% price hike, Chandigarh remains a hot option with NRIs, making buying property in its prime sectors akin to looking at Delhi's Jorbagh or Aurangzeb Marg. Although saturated with limited options, yet Chandigarh real estate prices continue to increase by 10% each month. Retail activity on the rise, Rajeev Gandhi Chandigarh Technology Park proving to be a magnet for IT professionals, biggies like Spectramind, Wipro, Convergys showing interest, proximity to the National Capital Region (NCR), property prices in Chandigarh, Mohali and Panchkula are rising fast, a trend that maintains an upward trajectory. The high demand for real estate sustained by a shift towards nuclear families, has resulted in Mohali and Panchkula seeing a 25 to 40% rise in the last few months, ever since the implementation of the Punjab Apartment Ownership Act. A 500-yard plot that was going for Rs. 70-lakhs in April is now selling for Rs. 1.30-crore at Mohali. With a promise of high returns, investors and developers have been circling like sharks snapping up large chunks of land in the peripheral regions of Chandigarh, Mohali and Panchkula. It remains to be seen whether an excess of supply works towards lowering the costs. In the end, real estate prices in the Tri-city area will ultimately hinge on the quality of development and infrastructure. Delhi Saturated with virtually no land space available for building, Delhi is experiencing a rising demand for flats, and prices in Rohini, Pitampura and Mayur Vihar have doubled within the span of a year. Gurgaon Gurgaon, part of the NCR is undergoing a severe supply crunch as present and future development supplies are drying out with most of them already committed. Some of the recent acquisitions of office space have been transacted by Ciena, Dell, Regus, ESPN, new players in Gurgaon real estate. Noida Boasting of the finest infrastructure in the country, Greater Noida is experiencing increased activity in Sectors 56 - 64, its IT hub. With the new expressway providing easy access to Delhi and top quality facilities ensure Greater Noida as one of the fastest emerging preferred destinations for HCL and other major IT firms. An in place infrastructure i.e. roads, housing, water, electricity, relatively low real estate costs, large tracts of land available for built-to-requirement, campus style developments, Greater Noida is the new IT destination. Bangalore India's Silicon Valley, Bangalore continues to retain its popularity as the best place to set up shop for IT companies, and as more of them flood in, they are fuelling the demand for housing and retail development. And, land prices have seen a 75 to 85% since builders shifted focus to Bellary, Surajpur and Outer Ring roads. The continuing demand for large office space by IT / ITES, off-shoring / outsourcing, financial services and banking sectors is adequate testimony of their long-term commitment to the city. It is a promise that the real estate market in Bangalore will continue to boom as long as global firms remain smitten with its charms. Continuing to attract investors, Bangalore has managed to lure Vancouver-based Royal Indian Raj International Corporation into investing a staggering $2.9-billion in a single real estate project appropriately called Royal Garden City. Mumbai As multinational banks, financial institutions and consulting firms flock to India's business and financial hub, Mumbai real estate retains its position at No. 15 of being one of the most expensive real estate in the world either in terms of both rental and capital value. More so than either Manhattan at No. 20, or Delhi at No. 32. As long as India is seen as an attractive investment venue by global and domestic players, real estate in India will maintain its edge as a high return asset. This article is sponsored by: www.indiarealestateblog .com