Flight of investors hurts NCR; southern region benefits due to lower land prices, IT hubs
The real estate sector in the south has outperformed the northern regions across categories including new launch trends, a new study has found.
Bengaluru has emerged as the top destination in most of the parameters evaluated for studying India’s top real estate destinations, according to the report released by real estate data, research and analytics firm PropEquity.
Big drop
Among the cities which have fallen the most in rankings are satellite town Noida (from 4th to 11th), and Mumbai (from 1st to 8th). Amidst the cities that have moved up the ladder is Hyderabad (from 10th to 4th).
Ten key parameters have been taken into account, including the price, supply, absorption, inventory, and new launch trends.
The study also looked at execution delays and the size of the market in value terms.
PropEquity puts the south at the top as three out of the top four cities are Bengaluru, Chennai and Hyderabad.
Pune ranked second, while Gurgaon, marred by project delays, expensive properties and a demand-supply mismatch, dropped to number 10.
NCR disappoints
“Noida, Greater Noida, Ghaziabad and Faridabad on the basis of the evaluated parameters are not in top 10 cities of India,” Samir Jasuja, CEO and Founder at PropEquity, said.
The report found that south, which has evolved as an IT hub, did well as it was an end-user driven market, land prices were low and many projects in are sold post construction or nearing completion, leading to an increase in homebuyer confidence.
Cities in the west have slower approvals, developers struggling with piling debt, expensive land, among others. NCR performance has been below par because there has been a flight of investors, according to the study.
Over 50 per cent of the sales in NCR have been investor driven since last 5-7 years owing to the exponential returns the market gave between 2009 and 2012, it added.
