The Southern part of India cities like Chennai and Banglore, are turning out to be hot destinations for the real estate lovers, with returns raise to 40-70 pc in the past three years. During the same period, the NCR region gave only 15-20 pc returns on investements, according to a survey.
Both the South cities Chennai and Bangalore have beaten the NCR in the number of new launches seen in this period. The launches in NCR stood at 32,194 till September last, but in Banglore the launches were 35,400 and in Chennai the number surged to 44,500.
In the high-end residental segment also the Southern cities are far more ahead in returns compared to NCR. According to experts, the NCR has been largely affected because of teh slowdown. Investors are leaving this market, which was once growing rapidly and giving huge returns. Most of teh investors are heading towards the Southern or the Esatern part of the country. Once the ecomony is back on track things will gradully imporve for teh NCR region.
The main difference in these markets is that Banglore and Chennai are user-driven markets, while NCR and Mumbai are investor driven.
Even the deevlopers have a better track record of delivering things on time. But in NCR if teh delivery is late the investors are happy. About 50-60 pc of buyers in the NCR rae primary investors. South has been a conservative but alert market as compared to teh NCR and Mumbai markets. Bangalore continues to be the IT hub and attracts MNCs, so teh demand for teh first-time buyers will be always there.