BRICK BY BRICK ATALE OF 10 CITIES
The Economic Times, December 29, 2009, Page 14
With the economy back on track and teaser loans on offer,buyers are doing the home run again.ET gives you a lowdown on the cities where you can build your dream home
Preeti Kulkarni
FTER a lull in the realty space for a significant part of 2009, property developers as well as buyers are gearing up for some hectic activity in the sector in 2010. A rebound in economic growth, the surfeit of home loan offers and continued thrust on infrastructure development have revived investor interest in real estate. ET gets specialists to do a realty check for various cities...
WEST
A handful of cities from this commercially vibrant region – Mumbai, Pune and Ahmedabad – are likely to retain their pre-eminent position as some of the most favoured destinations for investment in 2010 too.
According to Abhishek Kiran Gupta, head of research at real estate consultancy firm Jones Lang LaSalle Meghraj (JLLM), for Mumbai (ranked number 2 in the top 10 real estate destinations), the primary drivers include high income demographics, high-investment activity levels across price bands, massive infusion of commercial office and retail space and infrastructure development projects that are expected to boost residential demand in the suburbs. “While most markets within the city remain unaffordable, some eastern suburbs, Thane and Navi Mumbai could offer affordable deals,” he adds.
Pune is expected to see a huge supply of office space, with an addition of another 19 million sq ft expected in the next three years. The city’s proximity to Mumbai will continue to be an attractive factor. Similarly, states the JLLM report, Ahmedabad (ranked 9), with a population of more than four million, is likely to witness sectors such as pharma, logistics and automotive driving population growth further in the suburban markets.
NORTH
Preparations for the Commonwealth Games in 2010 and other infrastructure projects are likely to perk up the areas in and around New Delhi. The national capital has assumed the numero uno position in Knight Frank’s listing of hot destinations.
Gurgaon tops the chart as per JLLM’s findings, closely followed by Noida at No. 3. Gurgaon, according to the report, will see a huge development of commercial office and retail space — from 22 million sq ft of office space currently, it is expected to grow to 40 million sq ft by 2012. Other plus points include quality developers and developments in the city and improved connectivity, owing to the Metro lines. “Power and connectivity, though, continue to be areas of concern,” says Mr Gupta.
Similarly, Noida is another city expected to shine as an investment destination in 2010. Reasonable price range in the city has led to increased absorption momentum. Add to this, excellent connectivity — through existing road infrastructure as well as metro — has made investment in properties in the city attractive. As per JLLM’s report, it is likely to see an addition of 12 million sq ft of office space in the next three years.
SOUTH
As expected, Bangalore, Chennai and Hyderabad occupy the top slots (in this region) as attractive destinations in 2010. TheIT/ITES story will continue to drive demand for office as well as residential space next year in these cities. In Bangalore (ranked 4th and 5th by Knight Frank and JLLM, respectively), most of the micro-markets are highly affordable. “The city has attained a critical size of IT occupiers, which could help attract more IT occupiers,” informs Mr Gupta. On the flipside, the infrastructure development has not kept pace with the city’s growth. The key triggers for property prices in Chennai could be the huge migrant population working in industrial, logistics and IT & ITES sector. Properties along the Old Mahabalipuram Road benefit from good connectivity and proximity to IT hubs, making it a potentially lucrative locality for investment, according to JLLM.
EAST
By and large, the region resembles a desert for those looking at attractive investment opportunities here, with Kolkata continuing to be the oasis. The city is ranked number 5 on Knight Frank’s list of top 10 destinations in the country for 2010.
JLLM’s research, though, places it several notches lower at 8. “The absorption rate has picked up in Rajarhat, and the city boasts of highly affordable micro-markets,” says Mr Gupta. Growth in office take-up, however, is projected to be low next year.
The Economic Times, December 29, 2009, Page 14
With the economy back on track and teaser loans on offer,buyers are doing the home run again.ET gives you a lowdown on the cities where you can build your dream home
Preeti Kulkarni
FTER a lull in the realty space for a significant part of 2009, property developers as well as buyers are gearing up for some hectic activity in the sector in 2010. A rebound in economic growth, the surfeit of home loan offers and continued thrust on infrastructure development have revived investor interest in real estate. ET gets specialists to do a realty check for various cities...
WEST
A handful of cities from this commercially vibrant region – Mumbai, Pune and Ahmedabad – are likely to retain their pre-eminent position as some of the most favoured destinations for investment in 2010 too.
According to Abhishek Kiran Gupta, head of research at real estate consultancy firm Jones Lang LaSalle Meghraj (JLLM), for Mumbai (ranked number 2 in the top 10 real estate destinations), the primary drivers include high income demographics, high-investment activity levels across price bands, massive infusion of commercial office and retail space and infrastructure development projects that are expected to boost residential demand in the suburbs. “While most markets within the city remain unaffordable, some eastern suburbs, Thane and Navi Mumbai could offer affordable deals,” he adds.
Pune is expected to see a huge supply of office space, with an addition of another 19 million sq ft expected in the next three years. The city’s proximity to Mumbai will continue to be an attractive factor. Similarly, states the JLLM report, Ahmedabad (ranked 9), with a population of more than four million, is likely to witness sectors such as pharma, logistics and automotive driving population growth further in the suburban markets.
NORTH
Preparations for the Commonwealth Games in 2010 and other infrastructure projects are likely to perk up the areas in and around New Delhi. The national capital has assumed the numero uno position in Knight Frank’s listing of hot destinations.
Gurgaon tops the chart as per JLLM’s findings, closely followed by Noida at No. 3. Gurgaon, according to the report, will see a huge development of commercial office and retail space — from 22 million sq ft of office space currently, it is expected to grow to 40 million sq ft by 2012. Other plus points include quality developers and developments in the city and improved connectivity, owing to the Metro lines. “Power and connectivity, though, continue to be areas of concern,” says Mr Gupta.
Similarly, Noida is another city expected to shine as an investment destination in 2010. Reasonable price range in the city has led to increased absorption momentum. Add to this, excellent connectivity — through existing road infrastructure as well as metro — has made investment in properties in the city attractive. As per JLLM’s report, it is likely to see an addition of 12 million sq ft of office space in the next three years.
SOUTH
As expected, Bangalore, Chennai and Hyderabad occupy the top slots (in this region) as attractive destinations in 2010. TheIT/ITES story will continue to drive demand for office as well as residential space next year in these cities. In Bangalore (ranked 4th and 5th by Knight Frank and JLLM, respectively), most of the micro-markets are highly affordable. “The city has attained a critical size of IT occupiers, which could help attract more IT occupiers,” informs Mr Gupta. On the flipside, the infrastructure development has not kept pace with the city’s growth. The key triggers for property prices in Chennai could be the huge migrant population working in industrial, logistics and IT & ITES sector. Properties along the Old Mahabalipuram Road benefit from good connectivity and proximity to IT hubs, making it a potentially lucrative locality for investment, according to JLLM.
EAST
By and large, the region resembles a desert for those looking at attractive investment opportunities here, with Kolkata continuing to be the oasis. The city is ranked number 5 on Knight Frank’s list of top 10 destinations in the country for 2010.
JLLM’s research, though, places it several notches lower at 8. “The absorption rate has picked up in Rajarhat, and the city boasts of highly affordable micro-markets,” says Mr Gupta. Growth in office take-up, however, is projected to be low next year.
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