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A booming economy, easy availability of loans and plenty of projects to choose from are perhaps some of the reasons for the property market shining bright. Year 2006 has come to an end and if you're waiting for the right time to buy some nice cozy place under the sun, Moneycontrol gives you a lowdown on the areas across the country that hold the most promise and the reasons as to why they hold high growth potential.
According to Sajeet Narain, Managing Director, 'Narains Corp' International Properties, all Tier I cities will continue to remain a hot favourite in 2007 too thanks to the influx of foreign fund, multinational companies, FDI, better infrastructure among others.
But then if Tier I cities are out of your reach you could consider investing in the surrounding locations. Adds Narain, "A good place to invest in any Tier I city, is the location surrounding the city and the suburbs, as these areas historically have been in demand in most developing international cities.
"For instance the location surrounding Hyderabad is in demand as the rates in the city has increased. India's largest IT special economic zone is also going to be set up in the outskirts of Hyderabad which will help the residential demand to grow in the surrounding areas."
Sandeep Sadh, CEO Mumbai Property Exchange.com also believes that a lot of the growth will be driven by developments in the IT and ITES sectors.
Moneycontrol lists down hot locations that a mix of experts feel will be the best bets in 2007.
Tier I cities:
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Areas |
Reasons |
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Mumbai |
Growing infrastructure, relatively transparent property deals, entertainment and financial hub. |
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Pune |
Growing IT and ITES companies, good infrastructure, better quality of life than metros |
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Bangalore |
Increased demand from IT/ITES sectors, growing expatriate and returning professional NRI's, infrastructure development |
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Hyderabad |
Increased impetus on IT and ITES sector, quality residential housing, affordable compared with other Tier II cities, infrastructure development |
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Gurgaon/Noida |
Proximity to Delhi, better connectivity with high speed highways, impetus on IT and ITES sector |
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Chandigarh |
One of the best planned cities, government policy towards future development of IT and ITES Sector, improved infrastructure, easy connectivity to Delhi, |
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Tier II cities |
Reasons |
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Bhubaneshwar |
Potential areas for retail development in the vicinity of the IT/ITES Park. |
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(Chandrashekharpur, BhubaneshwarCuttack Highway) |
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Coimbatore (Vadavalli, Kovai Pudur, Peelamedu, Kaudampalayam and Trichy Road) |
Major construction activities visible in these areas |
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Indore |
Important industrial city with its robust textile, engineering and machinery sectors |
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(Focus is around the Central Business District (CBD) of M.G. Road) |
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Jaipur |
Likely to witness large-scale organized retail activity with leisure, entertainment. Surplus retail spaces may be offered for offices at lower price. |
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(CBD of Jaipur) |
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Kochi |
Potential destinations for the future development |
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(NH 47 by-pass road along NH 47 at Edappally, Seaport Airport Road, Kaloor-Kadavanthara road, Vytilla, Kakkanad) |
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Kozhikode |
Dream City project (a 140-acre project with nature park, amusement park, culture park etc.) coming up, the S.M. Street Heritage Project on 270 acres of land |
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(Indira Gandhi Road, Mavoor Road, Cherooty Road, several locations of Indira Gandhi Road, Mavoor Road, Cherooty Road, Beach Road) |
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Lucknow |
Preferred destination for retired IAS, IPS and other senior state government officials, more than four malls proposed in the city |
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(Mahanagar, Gomti Nagar, Aliganj, Indira Nagar, Nirala Nagar, Hazratganj, Kanpur Road and Rae Bareli Road, Gomti Nagar, Ashok Marg) |
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Trivandrum |
Proposed expansion for phase 2 and 3 of techno park |
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(Techno Park - (1.5 million square feet in 1995) housing global majors like Infosys, TCS, Ernst and Young, McKinsey and Company) |
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Nagpur |
Expansion of residential development is from the core to the fringe areas of the city. |
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(Amravati Road, Wardha Road, Kamptee Road and Katol Road., Civil Lines, Dharampeth and South and West of the city) |
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Madurai (Melur Highway) |
City growing towards Melur Highway. No significant growth towards southern part of the city |
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Raipur (The G.E. Road, stretch between Tati Bandh to Teli Bandha, Sharda Chowk, Jaistambh Chowk, Raipur, G E Road) |
Emerging as the most active retail destination in the city. Raipur, G E Road would remain most important corridor for retail real estate development |
Of late the trend is also towards owning a second home - a home away from the hustle bustle of city life especially to chill out during the weekend. Say property consultants Trammell Crow Meghraj, "Buyers of second homes mostly constitute the affluent audience of IT professionals, corporate executives, doctors, lawyers and stockbrokers and those with double income."
You can consider luxury villas in tourist spots like Goa, or if your budget permits, even a place in Dubai. Today, those with a budget of Rs 2 crore or more are increasingly eyeing this jewel of the United Arab Emirates. The incentives are a residential permit, enhanced career prospects and a great standard of living.
"That apart, there are hill stations that are also in great demand. These include Dehradoon, Mussorie, Nainital, Ooty, Mahabaleshwar, Simla, Wellington, Khandala or Lonavala' add property consultants Trammell Crow Meghraj.
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