In recent years, property prices in the metropolitan areas of Delhi, Bombay, Hyderabad, and Bangalore have experienced substantial growth, with certain areas now deemed excessively priced. However, turning attention outside this prestigious circle, cities such as Mohali, nestled in the foothills of the Himalayas, alongside the burgeoning town of Rudrapur in Uttar Pradesh — where a staggering 465 factories are being established — showcase a construction surge. In the southern region, Goa and Chennai continue to consistently attract investment.
Recently, the appetite for housing has soared as income levels have increased, new jobs are being generated, and people’s aspirations are shifting, although this momentum is somewhat dampened by the current credit crunch. According to a new commercial property report by the Royal Institution of Chartered Surveyors, India ranks among the nations most vulnerable to this financial strain.
Jane Jorgenson from Hamptons remarks, "The Indian property market is being affected by the credit crunch, as with all countries. Buying has certainly slowed. However, the growth of middle and high-income earners continues to supply a steady market of buyers." The real estate landscape has transformed from £6.5 billion in 2005 to an anticipated £30 billion. To enhance its presence, Hamptons has inaugurated an office in Delhi and established an India desk in London specifically for UK-based investors.
Land prices have skyrocketed fourfold in the last three years due to developers hastily constructing luxury residential projects, with starting prices for two-bedroom units commencing at a minimum of £125,000. Nonetheless, the significant boom is earmarked for affordable housing options. Projections indicate that the population earning upwards of £2,500 annually will double to 20 million in the next two years, largely due to the influx of approximately 2.5 million graduates exiting Indian universities each year.
UK-based agency David Stanley Redfern has initiated sales for off-plan apartments in Rudrapur, where two-bedroom properties are priced around £28,000. The Mountain View project rapidly sold out, but another development nearby is underway, designed to meet the expected demand for affordable housing. Rudrapur, categorized as a Special Economic Zone, grants tax incentives to businesses relocating to the area. Anticipated new factories are expected to create 300,000 jobs, with around 50,000 positions available for those moving from outside, all of whom will require rental housing. Meanwhile, with only 20,000 new housing units planned, buy-to-let landlords are poised to take advantage of the situation.
Emaar Properties and MGF have intentions to develop townships across Delhi, Hyderabad, Punjab, Uttar Pradesh, and Chennai, with investments exceeding £2 billion.
The growth potential remains immense. Sebastian Siddiqui, head of Hampton’s Delhi office, asserts, "With a rising middle class, 400 million people — more than the entire population of the USA — are set to buy their own homes."