Real Estate Investment in 2024 has many interesting prospects. The property prices which were unchanged in the major cities have started to show some positive shifts. And the rental market is also expected to come out from a stagnant phase. so, let’s understand whether 2024 is a good time for Real Estate Investment in India. And which are the 10 Best Cities In India For Real Estate Investment in 2024.
Whether real estate investment in 2024 is a good idea?
For this Let’s consider the recent developments in the Real Estate domain.
First, if you are going to buy a property in 2024, you have to pay low interest rates. Most of the banks including SBI are offering interest rates below 9 %- which is significantly lower than in the pre-covid years.
Second, In the upcoming Union Budget Of India, there is something more for you.
If you are a first-time buyer, you can save an additional 1.5 Lakh Per Annum on the payable interest. Provided that property comes under affordable housing, meaning stamp valuation is within 45 lakhs.
This seems completely in favor of a real estate investment In India. But considering the bleak economic phase, are there any new affordable projects coming up in the near future?
As you “the buyer” is having the relaxation, developers too have some tax benefits.
Because to boost affordable housing, the government is offering tax holidays to developers. This ensures low property rates and quality projects for real estate investors in 2024.
Now as the Real Estate Investment in 2024 sounds like a good prospect, let’s explore the possibilities.
In India, every city has its own real estate market trend because of many direct and indirect factors.
We will begin by considering the fundamental factors you need to consider while selecting a City for Real Estate Investment.
These were some of the important fundamental parameters.
But you need to consider a lot more while choosing a city for a real estate investment. Factors such as Real Estate market price trends in the city, upcoming projects, connectivity, and so on.
So here, you will have a two side analysis of the city, one that focuses on fundamental factors such as livability, ease of living, sustainability, etc. For every city, you will get here detailed statistics sourced from official City Rankings 2020.
The other side of the analysis will consider the real estate-oriented factors such as upcoming infrastructure projects, new policies, price trends, etc. The Housing Index in this article represents the price variations in residential housing properties.
So, considering all the important factors here is a list of the top 10 best cities for real estate investment in India.
NAVI MUMBAI
Why Navi Mumbai
Upcoming Navi Mumbai International Airport will be a great thrust to Navi Mumbai real estate. The first phase is expected to be completed by 2024.
An increase in direct and indirect employment will boost the overall need for residential and rental properties. Airport’s proximity will benefit the nearby localities such as Panvel, Ulwe, Kopar Khairane, Seawoods, and Sanpada.
There has already been a trend for a considerable appreciation of the properties in the Navi Mumbai Area.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
- Besides Navi Mumbai International Airport, there have been many upcoming projects which will boost the connectivity of the region.
- Mumbai Trans-Harbour Link (MTHL) will connect Navi Mumbai to the mighty Mumbai city. This is going to be India’s longest sea bridge (21.8mtrs in length) expected to be completed by September 2022.
- The Mumbai Pune Hyperloop will bring the journey time between the cities to just 25mins. It will have Navi Mumbai International Airport as a stop.
- Navi Mumbai Corporate Park in Kharghar is under planning and will be built in the plot area of 345 Acres. This will become the next industrial cluster of Navi Mumbai.
Price Trends 2024 (Updated)
Favorable State Policies
In Navi Mumbai, CIDCO’s housing scheme will provide 90,000 flats to the Economically Weaker Section (EWS) and Middle-income Group (MIG) home buyers.
Facilities
Healthcare: MGM Hospital, Apollo Hospital, Reliance Hospital, Terna Hospital
Education: MGM College, Ramrao Adik Institute Of Technology, Pillai’s College Of Engineering
Employment Hub: Multinational Companies have been preferring Navi Mumbai as a location. Other industries such as Banking, IT, and Manufacturing have been established in Navi Mumbai over the last few years.
Also Read: Best Areas For Real Estate Investment in Navi Mumbai
PUNE
Why Pune
Pune drives 13 percent of the states’ GDP and is the 3rd largest contributor to India’s IT exports.
It is emerging as a megacity for its sound connectivity, technology, and industry.
Property values in Pune are giving an attractive Return-on-Investment (ROI) to homebuyers. The rental incomes are also promising in the region.
In the first quarter of 2021, there were 18042 newly launched projects which is a 43% increase as compared to the last quarter. And around 75% increase in the overall real estate sales.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
- The upcoming new Pune International Airport in Purandar Tehsil is planned over an area of 2400 hectares and is expected to be complete by 2024. This will boost the economic activities of the region with the upliftment of areas such as Dhanori and Charholi Budruk.
- A colossal industrial park in Chakan is a 350 crore project to be developed over the next three years. It will be an ideal destination for the factories and create an industrial cluster in the Chakan region.
- The Mumbai Pune Expressway has been optimized and upgraded to reduce congestion.
- The High Capacity Mass Transit Route (HCMTR) is an impressive plan that will provide seamless connectivity to the Pune districts. The project has received impressive Foreign Direct Investment.
- Also, by the end of the year, Metroline 1- PCMC to Phugewadi will become operational by the end of this year to provide solid connectivity.
Favorable State Policies
- Under PMAY around 4884 flats have been assigned to the beneficiaries. Pimpri-Chinchwad Town Development Authority will develop around 6000 new affordable flats under the PMAY scheme.
Price Trends 2024 (Updated)
Facilities
Education: Fergusson College, Symbiosis Institute of Media And Communication, Savitribai Phule University, Dr. D Y Patil Vidyapeeth, COEP College Of Engineering.
Hospitals: Aditya Birla Hospital Pune, KEM hospital, Ruby Hall Hospital, Jehangir Hospital, Sahyadri Hospital.
Employment Hub: According to the Knight Frank Report, Real Estate Private Equity Investment in Pune is valued at 936 MN USD in the first quarter of 2021. This means private entities are favoring Pune as the location and this trend will continue in the upcoming years.
The leading industries such as IT, Financial Services, Fin-Tech Firms, Manufacturing have been gaining traction and providing good employment opportunities to the working class.
MUMBAI
Why Mumbai
Even though Mumbai is still the most expensive real estate market in 2021, there are some strategic locations that will see an unprecedented hike in property values.
In the first quarter of 2021, there was a 49% growth in overall real estate sales. And the property registrations increased by 70% in the first quarter of 2021.
Localities such as South Mumbai, South Central Mumbai, and Western Suburbs are the costliest.
But still, there are some emerging strategic locations in Mumbai such as Mulund, Thane, Malad (W), Goregaon ODC, Kandivali that can turn out to be best for property investment in Mumbai.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
- Mumbai Metro is the most anticipated infrastructure project in the city with a total of 14 network lines. Ghatkopar to Versova is already operational while the rest are under construction. The last phase of the Mumbai Metro Line is expected to be completed by 2024. The metro lines are expected to reduce the traveling time by 50-70%.
- Mumbai Trans-Harbour Link (MTHL) will connect Mumbai with other emerging cities like Navi Mumbai. The road will be linked to Mumbai Pune Expressway in the east and to the Western Freeway in the west.
- The Brihanmumbai Municipal Corporation is planning to connect Princess Street Flyover, Marine Drive to the Worli end of the sea link. The project has a cost of around 12700 crores.
Favorable State Policies
- The Maharashtra Government has reduced the construction premiums by 50 percent until December 2021. This ensures more quality real estate projects and ultimately more property investment in Mumbai.
- Jal Jeevan Mission has announced to improve quality water supply across 4400 urban local bodies. Separate Rs, 18000 crores were allocated for the better public transport facilities, Bus and metro network in Tier I and Tier-II cities.
Price Trends 2024 (Updated)
Facilities
HealthCare: Nanavati HospitalBook an Appointment, Wockhardt Hospitals, Mumbai CentralBook an Appointment, SevenHills Hospital, Global Hospital, Parel, Kohinoor Hospital, Kurla
Education: IIT Bombay, St Xavier College Mumbai, D G Ruparel College Of Arts, K J Somaiya College Of Arts, Veermata Jijabai Technological Institute, Mumbai University.
Employment Hub: Mumbai is one of the top trading centers in the world. Being the top city contributing to the country’s GDP, Mumbai provides countless employment opportunities.
IT, Entertainment, Textile, Pharmacy, Automobile, Electronics, Manufacturing, petrochemicals are the top industries among the others.
Seepz, MIDC, Bandra Kurla Complex (BKC), Powai are the key industrial areas on the employment front.
Also Read: Top 5 Localities To Buy A Home in Mumbai
THANE
Why Thane
Affordability and Connectivity to Mumbai have been the key factors for Thane’s rise as an ideal place for real estate investment in India.
There has also been large commercial and social infrastructure expansion over the last few years. This has resulted in high property appreciation and higher rental yield.
Real estate in Thane is getting a strong momentum with a 20% increase in the first quarter of 2021.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
- The upcoming Metro project will bring massive connectivity to thane. Metro Line 5- (Thane to Kalyan), Metro Line 4 (Wadala-Kasarvadavali) and Metro Line 12 (Kalyan Taloja) will reduce the traveling time by 50-60%
- Thane Borivali Tunnel Road through Sanjay Gandhi National Park, Thane to Belapur Road, Kopri Bridge, Airoli Karai Tunnel road are also key upcoming projects.
- The TMC has finalized the 13Km Coastal Road connecting Kharegaon to Gaimukh. This will be an alternative option to the existing Ghodbunder Road. It will reduce traffic congestion significantly.
- TMC has also planned for Urban Rail Transit System (LURTS) to connect Central Railway Station and Metro Line 4 and 5.
Price Trends 2024 (Updated)
Facilities
Healthcare: Fortis Hospital, Jupiter Hospital, Thunga Hospital, Bhaktivedanta Hospital, Horizon Hospital
Education: Dr. V N Ambedkar Institute of Management Studies, KC College Of Engineering, Asmita College Of Architecture, Viva college Institute of Management Studies.
Employment Hub: Thane’s industrial landscape has been dominated by MNCs, IT companies, and the Manufacturing sector. Also, its seamless connectivity to Mumbai as well as Navi Mumbai has allowed the city to explore the opportunities from both cities.
The upcoming Kalyan Business District will play a key role in bringing world-class companies to Thane.
BANGALORE
Why Bangalore
Ease Of Living, Expanding IT parks and Manufacturing hubs have been the main reason for preferring Bangalore for a real estate investment.
In Bangalore, Residential Real Estate is gradually moving up. According to the India Residential Market Update- Knight Frank Report, there was around an 18% increase in sales in the first. This trend is expected to continue throughout 2021.
In recent times, North and South Bangalore has been marked as well as real estate investment prospects.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
The central Govt has sanctioned Metro line Phase 2A and 2B that will connect Central Silk Board with Kempegowda International Airport. This will have a positive impact on the connecting areas of this route.
Bangalore- Mysore Infrastructure Corridor is a four-six lane expressway connecting important cities such as Bangalore, Mysore, and other regions in Karnataka. This is expected to reduce the travel time between the two cities from 90-180 mins and is expected to be completed by 2022.
Also, the Hyperloop corridor between the Kempegowda International Airport and the Bengaluru CBD area, with an estimated speed of 1080 Kmph is under the primary phase.
Favorable State Policy
The Urban Development Department (UDD) has proposed an amendment in the Karnataka Planning Authorities Rules, 2020. This will reduce the betterment fee to 0.2-0.5% from 0.5-1.5% giving relaxation to buyers.
Price Trends 2024 (Updated)
Facilities
Hospitals: Fortis Hospital, Bannerghatta. Manipal Hospital, HAL Airport Columbia Asia Referral Hospital, Yeshwanthpur. Aster CMI, Hebbal
Education: Indian Institute of Management, Bangalore, International Institute of Information Technology, National Law School Of India, National Institute of Fashion Technology, St Johns Medical College,
Employment Hub: Private Equity Investment in Bangalore is 2303 In the first quarter of 2021 According to Knight Frank Report. This is a clear indication of Bangalore’s rise as an industrial hub.
Bangalore is a destination for the leading IT giants such as Wipro, Infosys, IBM, and Google.
Along with the IT, Manufacturing, Biotech, Pharmaceutical and Automobile industries are also establishing in Bangalore.
CHENNAI
Why Chennai
There are two reasons for surging housing transactions in Chennai. First, all-time low-interest rates and second many discounted deals offered by the leading developers in Chennai.
The city added over 4,500 new housing units in Q1 2021 and most of them were added by the A grade developers.
Another notable trend in Chennai is the emergence of peripheral locations giving more buying opportunities. There has been a rise in the IT, Auto industries in the peripheral region.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
- The National Highways Authority of India (NHAI) is planning to develop the Chennai- Bangalore highway, which will reduce the distance between megacities by 50-60kms. It will scale up the economies of both cities by strengthening the connectivity.
- The Chennai-Kanyakumari Industrial Corridor (CKIC) is USD 484 Million projects that will cover 23 districts o Tamil Nadu and will increase the regional growth in the southern districts.
- The Chennai Metro Rail Limited (CMRL) is planning to develop a CMBT rail corridor. The planned corridor will connect Madhavaram to CMBT via 18 stations. The timeline for the project is around three years.
Policies
- In the Government Budget 201-22, Rs, 76000 crores have been allocated for the Bangalore and Chennai Metro projects. It will be great infrastructure leverage to both the cities.
- The Chennai Metropolitan Development Authority is preparing the third master plan to be effective from 2026-2046. This plan will focus on increasing affordable housing, industrial scaling, trade, and commerce among the others.
Price Trends 2024 (Updated)
Facilities
Healthcare: Apollo Hospitals, Dr. Kamakshi Memorial Hospital, Fortis Malar Hospital, Frontier Life Line Hospital.
Education: IIT Madras, College Of Engineering Anna University, Presidency College Chennai, Madras Christian College.
Employment Hub: Chennai is the center of the Automotive Industry, the leading Auto companies in Chennai include Hyundai, Caterpillar, BMW, Royal Enfield, Renault, Nissan, Yamaha, Mahindra & Mahindra.
Chennai is also a leading electronic manufacturing hub with leading companies such as Samsung, Motorola, and Sony. Recently, Tata Electronics has decided to invest over $670 million to set up a manufacturing plant at Hosur/ RMZ Corp.
HYDERABAD
Why Hyderabad
Hyderabad is one of the most affordable cities to invest in real estate.
The low cost of living along with great infrastructure have been the two important factors for real estate investment in Hyderabad.
Moreover, the city is very well connected with a robust network of highways such as NH-163, NH-765 NH-44, NH-65. South and Central Railway Zones and Rajiv Gandhi International Airport give impressive transportation facilities.
Because of this good track record, There were 9,349 launched in the first quarter of 2021 with an 80% growth in sales. This clearly highlights the popularity of Hyderabad for investment in real estate in India.
Housing Price Index (From Jun 2018- Dec 2020)
Favorable State Policy
Telangana government has laid an easy way of doing business with many user-friendly policies which are very transparent and also digitized with the latest technology and infrastructure.
The state has 56 notified Special Economic Zones (SEZs), the highest in the country, of which 34 are operational (the second-highest number in the country)
The state government’s efforts in building an enabling ecosystem for businesses to thrive have turned Hyderabad into a hotspot for entrepreneurs.
Price Trends 2024 (Updated)
Facility
Healthcare: Apollo Hospitals, Asian Institute Of Nephrology, Aware Global Hospitals, Continental Hospital. Basavatarakam Indo American Cancer Hospital & Research Institute, Hyderabad
Education: IIT Hyderabad, University of Hyderabad, National Institute of Pharmaceutical Education and Research, National Institute of Fashion Technology, Institute of Hotel Management Catering Technology, and Applied Nutrition.
Employment Hub: Hyderabad is the second largest contributor in the country to the revenues from IT exports. Global IT companies such as Google, Microsoft, Facebook, Apple, Amazon, and IKEA have been established in the city. Other important sectors include pharmaceuticals and life sciences, textile, Electronics, Airports, and Aerospace, etc.
The textiles sector has been identified as one of the key sectors for growth and job creation in Telangana.
NOIDA
Why Noida
Noida’s planned infrastructure and Affordability has been the key driver of real estate.
Jawar Airport will be a game-changer from Noida as it will boost the overall employment in the region. Many MNC companies can settle in the Noida region because of airport proximity.
Moreover, Noida is likely to give better ROIs on the properties in the upcoming times.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
Noida, Greater Noida, and Yamuna Expressway will be good realty prospects after the international airport at Jewar.
Noida Development Authority plans to add six new sectors along the Noida-Greater Noida Expressway. These new Sectors 160-166 would comprise institutional, industrial, and residential developments.
Industrial Development Authority (YEIDA) has taken Around 1000 acres of land In Gautam Budh Nagar to develop an infotainment zone for better public and tech facilities.
Favorable State Policies
The stamp Duty charges in Delhi NCR are likely to decrease because of 20 percent deductions in the circle rates till September 2021.
In its housing scheme, the Delhi Development Authority has planned to launch a housing scheme with over 1300 flats.
Price Trends 2024 (Updated)
Facilities
Healthcare: Felix Hospital, Noida/ Kailash Hospital, Noida, Neo Hospital, Noida
Surbhi Hospital, Noida, etc
Education: Birla Institue of Management Technology, Institute Of Management Studies Noida, Noida International University, GalGotia’s educational institution
Employment Hub: Noida is It hub, Multi-national Companies (MNCs) including KPMG, TCS, Genpact, and Accenture HCL Infotech, RSystem, IBM are already operational.
The city has More than 5000 industrial units giving ample job opportunities to the local people.
AHMEDABAD
Why Ahmedabad
In fact, the city is experiencing an annual growth of 2-4% in real estate.
Capital and Rental values In Ahmedabad have started to move up after the stagnation of the pandemic.
There has been a considerable increase in the new launches, 47% of which are in Ahmedabad east.
Outstanding Public Transport System- Robust Metro Connectivity and Bus Rapid Transit System and great infrastructure development. Moreover, the Ahmedabad Smart City Project is a dream project for Gujarat. It would be among the first 20 smart cities of the country.
Housing Price Index (From Jun 2018- Dec 2020)
Favorable State Policy
State Govt has launched Mukhyamantri Audyogik Shramyogi Ane Industrial Housing Awas that aims to provide residential needs for the migrants.
Also, Affordable Rental Housing Complex (ARHC) scheme has been launched to offer low rental residence to the economically Weaker Section.
The AUDA (Ahmedabad Urban Development Authority) plans to develop 6800 hectares of land around the periphery of Ahmedabad providing a range of residential property options.
Price Trends 2024 (Updated)
Facilities
Healthcare: Sterling Hospitals, Apollo Hospital, SAL Hospital, Shalby Hospital Care Institute of Medical Sciences
Education: Indian Institute of Management, st Xaviers college Ahmedabad, National Institute of Pharmaceutical Education and Research, B J Medical College
Employment Hub: Ahmedabad Has been moving progressively on the employment front.
Many new industries, KPOs BPOs, IT companies, multinational companies, have been established in the city.
The private equity in investment in retail has been 123 mn from the first quarter of 2021.
Big companies such as Tata Motors, Honda, Suzuki, and Hero Moto Corp have been interested in set up their manufacturing units in Ahmedabad.
KOLKATA
Why Kolkata
Kolkata is the most affordable real estate destination for investment in real estate in India.
There has been a rise in the affordable house segment in Kolkata because of the growth in infrastructural facilities all over the city.
Recently there has been increased sales volume and launched projects in the city. About 18 residential projects were launched in the first quarter of 2021 with more to the South and North parts of the city.
Housing Price Index (From Jun 2018- Dec 2020)
Upcoming Infrastructure Projects
The last phase of construction of the New Garia- Airport metro corridor has started. It will connect New Town VI to the Airport Terminal and is expected to be completed in Jan 2024.
Favorable State Policies
The KMC is planning to bring a 60% waiver on the interest accrued on the property tax dues.
Industrial hub: sectors like steel and mining, chemicals and petrochemicals, power, agro-industries and food processing, Information Technology (IT), real estate, and retail have been generating a lot of interest in West Bengal.
Price Trends 2024 (Updated)
Facilities:Hospitals: Apollo Gleneagles Hospitals, Kolkata, Belle Vue Clinic, Kolkata, Medical Superspecialty Hospital, Kolkata, NH Rabindranath Tagore International Institute Of Cardiac Science, Kolkata
Education: Indian Institute of Management Kolkata, West Bengal National University of Juridical Sciences, National Institute of Fashion Technology, University of Calcutta, Presidency University Kolkata
Industrial Hub: In Kolkata, the sectors like steel and mining, chemicals and petrochemicals, power, agro-industries and food processing, Information Technology (IT), real estate, and retail have been generating employment.
