Southern India: The New Real Estate Hotspot
The southern metropolises of Chennai and Bangalore are emerging as the most sought-after destinations for real estate enthusiasts, boasting impressive returns of 40-70% over the past three years. In stark contrast, the National Capital Region (NCR) has yielded significantly lower returns, ranging from 15-20% during the same period, as per a recent survey.
New Launches: Southern Cities Take the Lead
In terms of new project launches, both Chennai and Bangalore have surpassed NCR. As of September last year, NCR recorded 32,194 new launches, while Bangalore witnessed an impressive 35,400 launches, and Chennai topped the charts with a substantial 44,500 new launches.
High-End Residential Segment: Southern Cities Shine
The southern cities have also outpaced NCR in the high-end residential segment, offering substantially higher returns. Experts attribute NCR's sluggish performance to the prevailing market slowdown, prompting investors to explore opportunities in the southern or eastern parts of the country. Once the economy regains momentum, NCR is expected to gradually recover.
Key Differences: User-Driven vs Investor-Driven Markets
A crucial distinguishing factor between these markets lies in their driving forces: while Bangalore and Chennai are primarily user-driven markets, NCR and Mumbai are dominated by investor sentiment.
Developer Track Record and Market Dynamics
Developers in Bangalore and Chennai are renowned for their timely delivery of projects. In contrast, NCR investors often exhibit leniency towards delayed project completions. Notably, approximately 50-60% of buyers in NCR are primary investors. The southern market, characterized as conservative yet vigilant, differs significantly from the NCR and Mumbai markets. Bangalore's status as a thriving IT hub, attracting numerous MNCs, ensures a consistent demand for first-time buyers.