By 2024, new highways, airports, and metro lines will significantly impact housing demand. Infrastructural developments will continue to dominate in 2024 and influence housing trends. The success of the residential and commercial real estate sectors will probably be determined by the construction of new metro connectors, motorways, and airports, whether they are currently operating or not.
In the influence zones, the upcoming infrastructure renovation will boost residential activity. The capital value of the catchment areas along the project corridors will likely increase significantly, drawing in both investors and end users.
According to Colliers India CEO Badal Yagnik, “peripheral areas will become integrated with central and suburban areas as infrastructure projects get completed throughout 2024, resulting in homogenization of activity across key residential pockets of respective cities.”
It is also probable that real estate developers will branch out into new areas.
Organized residential real estate is well-positioned to enter the next phase of growth in markets such as Vadodara, Nashik, Lucknow, Jaipur, Chandigarh, Coimbatore, Mysore, Kochi, Indore, Bhubaneshwar, and Guwahati. It is due to unrealized potential and growing preference for comprehensive offerings in gated communities of tier 2 and 3 markets.
The cities with more upside potential than Tier 1 cities will attract more and more investors seeking residential real estate. In addition to the outskirts of large towns, developers will likely add high-quality supply to these emerging markets, according to Yagnik.
Homebuyers and investors should be aware of these markets.
Gurgaon
Those looking to buy real estate in Gurgaon near the Dwarka Expressway might find it interesting.
New sectors by the Dwarka Expressway in Gurgaon include 113, 112, 111, 110, 109, 108, 107, 106, 104, 103, 102, 99, 88B, 37D, 36A, and 36B. With an extension to the Dwarka Expressway close to Sectors 101-104, the metro line will eventually link the old and new Gurgaon by the Union Cabinet in 2023.
Along this stretch, there are several upscale and mid-range housing complexes. Local brokers claim that property rates in the area vary from Rs 8000 to Rs 20,000 per square foot, depending on the project and location. Rentals in the area start at Rs 20,000 per month.
The international real estate consulting company Savills India reported. Over the past five years, the average capital values of completed and under-construction properties have peaked, with 36% and 25% YoY growth recorded at the city level in Gurgaon, respectively. The average capital value of both completed and under-construction properties increased by 12% to 45% year over year.
New Gurugram and Dwarka Expressway were the top-performing micro markets, with annual growth of 45% and 21% in average capital values of under-construction properties, respectively.
Noida
Sector 150, Greater Noida West, and a few residential areas along the Yamuna Expressway that are reasonably close to the future Noida International Airport are some of the most well-known markets in Noida.
In 2024, prospective homeowners and investors also want to look at Greater Noida West or Noida Extension.
In the area, the price range for a 2BHK unit is Rs 60 lakh to Rs 80 lakh, while a 3BHK unit can cost over a crore. Depending on the size and location, monthly rentals for two-bedroom housing units can cost anywhere from Rs 15,000 to Rs 20,000, while 3BHK apartments can cost anywhere from Rs 17,000 to Rs 25,000. According to local brokers with ties to the area, there will also be a few serviced apartment developments.
Mumbai
The Navi Mumbai Metro, which began service a few months ago, is located in several areas of Mumbai that prospective homeowners and investors might want to look into.
The route passes through these micro markets, which include Taloja, Pendhar, Kharghar, and Belapur. Most of Taloja’s real estate costs between Rs 6000 and Rs 8000 per square foot on average, and it will continue to increase due to the metro connector. Local brokers state that the starting rent is approximately Rs 10000 per month.
Ulwe, a posh neighborhood in Navi Mumbai, is another place to be on the lookout. Through this area runs the 22-kilometer Mumbai Trans Harbour Link (MTHL), which links Mumbai and Navi Mumbai. Because of this new infrastructure, capital rates have increased in this area to the point where two-bedroom apartments for more than Rs one crore. According to local brokers, rents can range from Rs 10,000 to Rs 20,000, contingent on the location and type of apartment building. The proposed Navi Mumbai International Airport will impact the property values in the Navi Mumbai area. The proposed Navi Mumbai International Airport will impact the property values in the Navi Mumbai area.
In 2023, South Mumbai—known for its apartments and bungalows in Malabar Hill, Malabar Hill, and Walkeshwar—closed most of its high-end transactions. In 2024, the trend is going to continue. There are also several redevelopment initiatives in these areas. In addition to K Raheja Corp and Kalpataru, prominent players in the listed real estate market include Lodha and Godrej Properties. Most opulent residential apartments range from Rs 35,000 to Rs 1.50 lakh per square foot. Rents can start from Rs 1 lakh, depending on the property’s location.
The demand for rental properties has risen with the opening of metro lines 2A and seven between Dahisar and Andheri, particularly in the Western Suburbs micro market. According to a Savills India report, the student population traveling by metro to colleges in Andheri and Vile Parle locations created a significant demand for rental properties in Kandivali and Borivali. It led to an 8% YoY increase in rental values.
Bengaluru
In Bengaluru, the Purple Line went fully operational in 2023. The segment between Whitefield and Kengeri, West Bengaluru, was completed and operational in October.
Local brokers say properties along this corridor are an ideal investment option for personal use and rental income.
They claimed that the prices have already increased by 20-30% in places like MG Road, Whitefield, Koramangala, and Indiranagar.
The sources also suggest that the outskirts of KR Pura and Whitefield might be considered, given their increasing popularity in the wake of the metro’s opening.
According to a report by Savills India, rental growth in premium residential developments in South and North Bengaluru is the highest, with 6-7% YoY growth. Average city rents increased by 5.8% YoY.