Bengaluru Takes Top Position Among All Real Estate Destinations!
Mumbai ranked first five years ago and Bengaluru did even rank among the top five cities but has now climbed to the crest position. Mumbai currently occupies the eighth position. The rankings indicate that Southern cities are at the top of the real estate agenda with Chennai and Hyderabad among the top five too.
PropEquity has made research and analytics in real estate its business and considers ten important parameters to base the rankings. Some considerations include the size of the market value, inventory and supply, absorption, new launch trends and delays in execution.
Which are the top ten cities, according to the parameters? Pune, Chennai and Hyderabad follow Bengaluru. Fifth to tenth positions are occupied by Ahmedabad, Thane, Kolkata, Mumbai, Navi Mumbai and Gurgaon. Later come Noida, Ghaziabad, Greater Noida and Faridabad. Gurgaon that saw better days is now haunted by a demand and supply mismatch, delays in executing projects and expensive properties.
Besides being numerous uno, Bengaluru leads in four of the ten parameters used for ranking purposes (market size, CAGR of absorption, total unsold inventory, yearly absorption ratio).
Pune was indirectly responsible for the western region coming second in the tally. Strangely enough the Delhi NCR region does not qualify in any of the parameters either as city or as region. Neither do we find Ghaziabad, Faridabad and Noida among the top ten. Gurgaon remains in the tenth spot though.
Mr. Samir Jasuja, PropEquity CEO and Founder, believes that the southern leading trend is likely to continue into the future. Hyderabad has been doing rather well by climbing from tenth to fourth position. Mumbai and Noida are the worst sufferers. Noida fell from fourth to eleventh position. The southern region is not only first at city level but overtook the north in regional ranking too. NCR cities are right at the bottom, pitiably so because of certain weaknesses afflicting them.
Supreme advantages of the southern real estate market
Like Mumbai and Delhi NCR, Bengaluru also witnessed a dip in demand for residential properties. Yet office spaces saw the highest levels of rent in Bengaluru. The south including Bengaluru and Hyderabad has become the technology and software headquarters of the country and so the demand for office space has been on a mighty scale.
In southern India the land prices are reasonable enough in comparison to the north and west of the country. In fact the real estate prices have remained steady and increases have been marginal only and that encourages investment and builders. Developers have numerous small projects and enough capital. Many housing projects are sold around or after the completion time that increases customer confidence. The end user market did not suffer when investors withdrew as happened recently.
Ratings for Projects
CRISIL the global real estate ratings company has assigned new project ratings to VBHC Value Homes Pvt. Ltd., the pioneering reasonable housing organization. P.S. Jayakumar, Managing Director, VBHC Value Homes, says that the rating strengthens the dedication to quality standards. CRISIL awarded 6 stars to Vaibhava Anekal while 5 stars went to Vaibhav Bhiwadi, Vaibhav Palghar Greens (phase 1) and Vaibhava Kengeri (Phase 1). 4 stars were given to Vasind Hills project. The CRISIL ratings reflect quality, legal documents, finance and design.