Shining bright

As India’s soaring economy boosts consumer confidence and housing demand, three cities are enjoying the investment limelight. By Robert Adams.

WHICH CITIES ARE PERFORMING WELL?

Top of the property charts is the largest city in the state of Gujarat in western India, Ahmedabad, which posted a 19% year-over-year increase in home prices in the second quarter of 2018, making it the fastest growing among the 150 global cities Knight Frank tracks in its Global Residential Cities Index.

Two other cities also made the top 10: Hyderabad, the capital of the southern state of Telangana, ranked third with a 16% home price increase year over year. Home prices in Pune, in the western state of Maharashtra, meanwhile rose 13.5% annually making it the eighth fastest-growing city globally.

WHAT IS THE BACKDROP TO THIS BOOM?

At the end of 2017, India’s residential sector shrank to a fraction of its size in less than a decade. Eight key cities — collectively saw just over 100,000 new residential units enter the market.

Similarly, sales volumes were restricted to 228,000 units, a fragment of its scale in the recent past. While the market has been on a steady decline, the past 12-odd months have seen a marked turnaround triggered by demonetisation.

Stakeholders are growing in con­fidence with the gradual acceptance of structural reforms such as the Real Estate (Regulation and Development) Act, 2016 and a new more favourable tax regime introduced by government.

Select markets have witnessed developers relaunch projects at attractive prices, which has led to an uptick in sales. ‑ e strategic switch in developers’ approach has also led to a price reduction is most markets, making it an unprecedented trend in India’s real estate sector.

There is also an uptick in capital movement in the form of overseas investment. Traditionally, the desire for an overseas home in India has been largely driven by fascination for exotic locations and for relocation purposes. But today, many more foreign investors are buying as a sound investment.

WHAT IS UNDERPINNING THIS TRANSFORMATION?

India’s strong real estate performance is mainly due to the country’s economic growth. In the ­ rst quarter this year, the country’s economy grew by 8.2%. To put this ­ gure into context, the global economy is projected to grow 3.1% in 2018, while emerging markets and developing economies overall are projected to grow 4.5%, according to the World Bank.

The real estate sector is also hugely important to the country’s economy, accounting for between 5to 6% of GDP, according to a report by JLL and CREDAI, which forecaststhe industry will make up 11% of GDP by 2020.

WHAT RESIDENTIAL PROJECTS ARE DRAWING INVESTOR INTEREST AT PRESENT?

Mumbai - BLU Residences

Rising majestically above the city of Mumbai and the Arabian Sea, BLU Residential Towers will stand as the tallest residential tower in the city and sprawls over 10 acres of land. Developed by Indiabulls Real Estate, the comprehensive collection of 2, 3 and 4-bedroom apartments have access to a host of amenities including a gym, banquet hall, tennis courts and multiple swimming pools.

https://bluworli.com/

Pune – The Luxe Towers

Situated in the buzzing metropolis of Pune, the Luxe Towers will be a calming residence nestled in a bustling city. These lavish apartments come with ­five parking spaces each, separate quarters for home staff and even an internal lift for every abode. With just twenty-two bespoke 4-bedroom residences, future buyers can expect an exclusive lifestyle.

www.theluxetowers.com/home.php