Who is investing in Indian real estate, and where? Check this report.

According to a Cushman & Wakefield report, the Indian real estate sector received USD 1.1 billion in investments in Q1 2024, with the residential real estate sector outperforming other asset classes and attracting investments of nearly $693 million. 

In recent quarters, the residential sector has been on an upward trend, driven by strong housing demand and resurgent supply. It has also attracted a great deal of capital from investors in Q1 2024, who are banking on the segment’s bull run, which accounted for more than 63% of total realty investments in the quarter. 

In absolute terms, the Q1 2024 investment inflow into the residential market is twice the quarterly average over the previous eight quarters. 

Furthermore, nearly 48% of investment in the residential sector was concentrated in the early stages of development across the top eight cities, indicating increased investor interest, a steady rise in residential capital values across cities, and a growing share of high-end luxury launches.  

Who is investing the most? 

According to the report, domestic investors maintained a strong investment momentum, accounting for 57% of total quarterly investments. Foreign investors and collaborative (or mixed) deals accounted for 43% of the inflows in Q1 2024. This is consistent with the trend observed in 2023 when domestic investors participated in Indian real estate. 

In terms of city-specific split, Bangalore led the way, accounting for 25.6% of total investments in Q1 2024, with more than half of the share going to the city’s office sector. Pune ranked second in terms of investment volume, accounting for 14%. 

Investment in equity

Equity investments in the real estate sector stood at 58% in Q1 2024, while debt investments increased to double the quarterly average level of the previous eight quarters, with almost all of that going to the residential sector. 

The office sector remained the preferred sector among equity investors, accounting for 43%, closely followed by residential investments (38%). Despite a slowdown from the previous quarter, early-stage deals remained consistent with the average in-flows over the last eight quarters. 

In addition, corporate transaction volumes increased by 65% year on year, reaching INR 12.78 billion (USD 0.15 million). Mumbai continued to drive transaction value, accounting for 57% of the total, followed by Pune at 33%. 

According to Somy Thomas, MD of valuation & advisory and capital markets at Cushman & Wakefield, “Q1 2024 saw another strong quarter of capital inflow into the Indian real estate sector, with residential dominating due to renewed customer and investor confidence. This strong performance has piqued investors’ interest, prompting them to invest in a market that is expected to grow even more. 

“Domestic investors increased their investment in the quarter, providing additional protection against potential global headwinds while strengthening India’s domestic market and investor interests. As we start the new fiscal year, we expect this momentum to continue, with potentially more diverse investments in the future. 

Understanding Property Types and Investment Opportunities in Real Estate

Despite a spike in home loan interest rates, the residential real estate market performed well, indicating a positive industry sentiment. 

Investing in the stock market is a game-changer for those who can monitor it regularly, as it requires investors’ full attention from 8:30 a.m. to market close. Because of its volatility, equity is no longer the best investment. People are now turning to real estate because it offers long-term benefits. It is regarded as the correct move, particularly when the sector is at its highest level. 

For example, despite the local water crisis, Gurugram has set all-time highs in property prices. Because of the proximity of offices in the surrounding areas, Delhi/NCR has become the preferred destination for IT professionals. As demand in Noida, Greater Noida West, and New Noida grows, many large projects have relocated there. 

Why do prices increase? 

As the government has announced numerous infrastructure projects in Uttar Pradesh, it is clear that NCR will be a new residential and rental income source for many people. At the E&Y Infrastructure Roundtable, Ajit Krishnan, EY India Partner International Tax and Transaction Services, stated, “Investments in renewable energy and roads drive India’s infrastructure growth, paving the way for sustainable development.” 

On February 8, 2024, Uttar Pradesh Chief Minister Yogi Adityanath announced infrastructure projects and public welfare schemes, including plans for 21 new airports in the city. Tourism in Ayodhya had already peaked with the opening of the Ram Mandir, with 1.12 crore visitors arriving before the temple was open to the public.

This is not the only factor influencing the current state of the real estate market. The geopolitical landscape has exerted significant pressure on the sector. According to Anarock Capital’s Flux report for the first nine months of FY24, PE investments declined by approximately 26%. During this time, foreign and domestic investors saw a decline in activity. 

Despite the presence of many bankrupt builders, Noida and Greater Noida West have attracted several large projects. It demonstrates that the real sector has the potential for regular income and significant lump sum gains. Gurugram has become a dream for those earning between Rs 15 lakh and Rs 20 lakh as property prices skyrocket. To match and reduce the huge price gap within Delhi/NCR, Uttar Pradesh has increased infrastructural development with basic amenities in the region to attract more buyers. 

To better understand this investment opportunity, consider Uttar Pradesh. The fluctuations in property values over the last few years demonstrate how dynamic real estate investing can be, with both growth and risk involved. 

Profitable investments. 

Although single-room sets are no longer as affordable as five years ago, they remain a sound investment.

Rental income is also at an all-time high in 2024. In 2020, two three-bedroom flats generated rental incomes ranging from Rs 10,000 to 12,000. However, they have risen to Rs 19,000 -25,000. 

As an adjacent city to Delhi, people are migrating to make a living and require a place to call home.  Purchasing or renting a home in Delhi has become costly, paving the way for the NCR region. 

Consider the following scenario to comprehend the investment and income: Assume someone invests Rs 10-12 lakh to create a one-bedroom kitchen set. In just seven months, this newly built one-bedroom apartment will begin to generate an average monthly rental income of Rs 15,000-16,000. With an initial investment of Rs 10-12 lakh, the average return on investment (ROI) is 15-18%. 

This example demonstrates the potential profit from investing in single-family homes. Even with modest investments, rental income can generate significant returns, making it an appealing option for real estate investors looking for consistent cash flow and long-term appreciation.

Residential Property: 

During unprecedented times, the real estate sector encountered significant challenges. However, the post-COVID scenario revealed a very different landscape. With many businesses returning to in-office work environments and discontinuing work-from-home arrangements, the residential real estate sector experienced a significant resurgence. 

Despite rising home loan interest rates, the residential market performed well. Recent studies have shown that escalating rental values are one of the key drivers of this demand surge.  Investing in ready-to-move projects is becoming increasingly appealing to buyers. 

A ready-to-move property presents a win-win situation based on past experiences. In contrast to new projects with uncertain possession timelines, ready-to-move projects offer immediate gratification and peace of mind. 

Several examples of this point can be found along the Gurugram-Dwarka Expressway and Greater Noida West, which serve as valuable case studies for investors. 

In 2023, 4.77 lakh residencies were sold in new projects. In pre-pandemic 2019, the share of freshly launched supply sales was substantially smaller, accounting for only 26% of the approximately 2.61 lakh dwellings sold that year. 

According to Anarock real estate research, NCR has the lowest absorption of newly launched homes among the top seven cities, with only 27 percent of the 65,625 units sold in 2023 being launched during the year. The remaining units were sold in projects that opened before 2023. Interestingly, Gurugram outpaced other markets in the NCR region, with at least 35% of the 36,970 units sold in Millennium City in 2023 being freshly launched. 

Real Estate Investing: A Comprehensive Guide

Karan Shetty offers this thorough guide on how to get started and build wealth in the real estate industry if you are a beginner eager to start your wealth-building journey.

Saving money alone may help you weather financial storms, but investing is the true path to true wealth-building. Today’s millionaires are mainly the product of their investments, demonstrating the importance of these strategies in obtaining financial independence. 

Investment is, therefore, a necessary step, not just an option, if you want long-term financial security. 

The adage “The best time to plant a tree was 20 years ago” is true. Right now is the second-best time. It is true that when it comes to investing, the early bird usually gets the best deal. 

Real estate investing is one strategy that sticks out for its ability to generate significant returns and long-term wealth. 

  1. Learn Things: Your most potent tool in the real estate game is knowledge. Start by being familiar with the fundamentals, including market trends and terminology. Books, Online courses, credible websites, podcasts, and industry reports from renowned companies are all excellent sources for learning this fundamental information.
  2. Specify Your Investment Objectives: What do you hope to accomplish by investing in real estate? Do you see long-term capital appreciation, a profitable flip, or a consistent rental income stream? Setting clear objectives will enable you to make well-informed choices regarding your investment approach, properties, and locations.
  3. Evaluate your financial health: Ensure you understand your financial status before acting. It entails assessing your available capital, debt-to-income ratio, and credit score. Establish a reasonable spending plan and stick to it. This exercise will give you a better understanding of the various financing options that you have at your disposal, such as home loans, private loans, private loans, and government-backed programs. 
  4. Choose the right property: Based on the results above, choose the kind of property you want to concentrate on, such as land, commercial, residential, or vacation rental. Investing in real estate properties that generate income is always advised if you want to make your money work for you. 
  5. Choose a location: A location is a location: When it comes to real estate investing, this adage is accurate. Pay more attention to emerging markets than crowded ones. Seek locations undergoing development about employment prospects, infrastructure, and even tourism. 
  6. Expand Your Network: Connect with other investors and real estate professionals, such as property managers and agents. Networking can reveal possible investment opportunities in addition to offering insightful information. 
  7. Start Small: It is a good idea for novices to take a cautious approach and make a small initial investment. It enables you to hone your investing strategy and acquire new skills.  
  8. Thorough due diligence is essential: Do extensive due diligence before concluding any transaction. It entails investigating the property, comprehending the neighborhood market, and assessing possible dangers. Check that the developer has a good track record and that the construction is of a high standard before investing in a project that is still in the planning stages. Getting a lawyer to verify the property title is crucial if you purchase a property from a previous owner.   
  9. Reinvest and diversify: As your portfolio expands, spread your profits among several real estate markets and reinvest earnings into more properties. Diversification raises the possibility of steady, long-term returns while lowering risk.  
  10. Look into alternative investment opportunities: Traditionally, investing in real estate has required an initial investment or a long-term loan. It has often proven to be the primary barrier to entering the world of real estate investment. 

However, options like fractional ownership, REITs, and InvITs offer an ideal medium for people who want to buy real estate without making significant financial contributions. 

Although it can be intimidating for a novice to navigate the real estate market, the long-term rewards can be quite fulfilling. Gaining knowledge, establishing specific objectives, and adopting calculated actions will put you well on your path to leveraging real estate to build wealth.

To achieve financial independence in real estate investing, ensure that your most reliable allies will be patience, diversification, and well-informed decision-making. 

Sotheby’s International Realty report shows that India’s wealthy are considering real estate investments

High-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) showed substantial economic optimism in the India Sotheby’s International Realty (ISIR) annual Luxury Outlook Survey 2024, with a staggering 79% expressing confidence in the country’s positive trajectory for 2023-24, up from 59% the previous year. 

This positive outlook also applies to the real estate industry. 71% of respondents stated they intended to purchase real estate in the next 12 to 24 months, demonstrating strong confidence in the market despite a nearly 40% increase in property prices over the previous 24 months and an increase in mortgage rates. 

The main reason for real estate investment (44%), capital appreciation, has surpassed lifestyle upgrades. It indicates that investors are returning to the market with an emphasis on long-term appreciation. 

India is more confident than ever in directing its destiny. The International Monetary Fund projects that by 2027, the fifth-largest economy in the world will rise to the third rank. The country’s central bank, the RBI, forecasts 7% GDP growth in 2024. An all-time high in the stock market and record-breaking home sales in Indian real estate in 2023 are indicators of the growing economic momentum. The top end of the real estate market will benefit the most over the next 12 to 24 months. Goldman Sachs Group Inc. projects that the number of people in the affluent class will almost double to 100 million over the next three years. India’s ultrawealthy are growing. The ranks of the ultra-rich have continued to rise due to the strength of strat-up ecosystems and the increasing number of unicorns. Amit Goyal, MD of India Sotheby’s International Realty. “Our Luxury Outlook survey results show a renewed and heightened interest among investors who now view real estate as a compelling avenue for long-term wealth creation.”  

“The resilience and potential of the Indian economy are reflected in the remarkable shift in economic sentiment we are witnessing. The significant rise in fresh luxury project launches in the top seven cities in 2023 is unsurprising. Additionally, attitudes are changing consistent with real estate’s enduring value and potential for long-term financial growth. “We think investors are strategically positioning themselves for wealth accumulation and creating multi-generational wealth through real estate investments,” says India’s Sotheby’s International Realty CEO Ashwin Chaddha. 

Regarding home loan interest rates, the Reserve Bank of India (RBI) plans to begin lowering rates in 2024, according to 56% of HNIs and UHNIs, indicating a promising future for mortgages and financing. 

A startling 83% of wealthy Indians, according to the survey, own several luxury homes, indicating a trend of diversified real estate portfolios among the affluent. 

In addition to their primary residences, 34% of respondents showed off their commercial real estate, 25% their vacation homes, 21% their agricultural land, and 20% their farmhouses. 

Other noteworthy results showed that Goa was the preferred destination for 35% of holiday home buyers, indicating the long-lasting appeal of Goa’s lifestyle to Inia’s affluent. The desire to purchase real estate abroad stayed steady at 12%, with the USA and Dubai, United Arab Emirates, continuing to be the top destinations. 

A desire to consolidate their portfolios and concentrate on higher-quality properties and assets that generate income was indicated by 43% of UHNI and HNI respondents.  To research and view properties, 34% of UHNIs and HNIs have switched to using digital tools, such as walkthroughs and 3-D virtual reality, highlighting the impact of digital transformation even at the top of the luxury housing market. 

Do you invest in real estate? Check this out

Over $5.8 billion in institutional investments were made in 53 deals in the real estate sector in 2023, a 14% increase from 2022. Demonstrating India’s resilience in the face of global economic headwinds. Investor confidence in the Indian growth story is expected to persist through 2024, according to JJL India report titled “Investing in Tomorrow: The Real Estate Journey of 2023.” 

With a 63% stake in the total investments in 2023, foreign institutional investors made up the most contributors. The Americans, historically the most to investments, saw a sharp decline to 23% of total investments from a peak of 43% in 2022. 

Nonetheless, domestic investors saw a sharp rise in market share, with 37% of all investments made, up from an average of 19% over the preceding five years. 

With 81% of all real estate investments made, equity remained the predominant type of investment. Non-core assets make up 53% of all transaction volumes. 

According to the report, the office sector will continue to be the most favored industry in 2024. 

With a 52% share of the investment pie, the office sector by a wide margin. Residential and warehousing came in second and third, respectively, at 13% and 16%. The amount of capital flowing into the office sector increased by 61% in 2023, from $1.8 billion in 2022 to $3 billion in 15 deals.  

Emerging industries to draw capital 

In the upcoming years, many institutional investments will go toward emerging industries like student housing, data centers, and warehousing. Institutional investors in India have been paying more attention to student housing as an asset class. There is a big chance for institutional investment in this space because of the rising number of students going to college and the rising need for high-quality housing. 

Institutional investments in India in 2023 appeared unaffected by inflation or unclear global economic trends. The trend of investments surpassing $5 billion has persisted since 2018. The US and Canada’s investment activity has decreased due to various rate increases in the Americas. Nonetheless, the APAC area made a sizable contribution in 2023. The outlook for the Indian economy is still favorable, and we anticipate this positive trend will last into CY 2024, according to Lata Pillai, senior managing director and head of capital markets at JLL India. 

Pillai continued, “The India growth story will continue to be robust, driven by its inherent strengths and continued focus on economic development, even though the upcoming elections may cause delays in decision-making.”

Platform Assertions 

Furthermore, $2.8 billion in platform commitments to invest over the following few years was made public in 2023. Platform commitments decreased significantly (by 38%) from 2022, the year with the most growth in platform deals—a 174% rise from 2021. 

The global economic slowdown has impacted investor sentiment toward long-term commitments despite increasing investments. With an investment capacity of more than $1.8 billion, Ivanhoe Cambridge and Mapletree struck the largest platform commitment deal in the history of technology-led offices in India last year.  

Exploiting public market opportunities with REITs. 

Real estate businesses and investors now have more ways to access public markets in India thanks to the introduction of REITs, which provide regulated investment structures and liquidity. 

The first retail Real Estate Investment Trust (REIT) in India, Nexu Select Trut REIT, was listed in 2023. Anchor investors responded favorably to the IPO, absorbing 45% of its total size. 

The last two REITs, Brookfield REIT and Nexus Select Trust REIT saw a rise in participation from domestic institutional investors, indicating a growing level of interest and confidence in the Indian REIT market. In 2023, Blackstone sold its 23.5% stake in Embassy Office Parks REIT for $850 million, or Rs 316 per unit, and left the REIT. 

Bain Capital, ICICI Prudential MF, and Capital Group were the top three purchasers, acquiring stakes ranging from 7 to 9%. The robust reaction from institutional investors suggests that this real estate investment tool is becoming increasingly popular and that real estate is beginning to institutionalize. 

2024

The nation’s growth trajectory has generally benefited from the government’s efforts to advance infrastructure development and bring structural reforms. Experts in the market believe that this growth will continue and that investors will continue to feel optimistic about India’s growth story. 

Shortly, the outlook for private equity investment in the Indian real estate market is anticipated to remain positive, having recently improved.  

However, it will be crucial to closely monitor the trends in capital flows going forward into 2024. The capital flow slowdown observed in the fourth quarter suggests the potential cautious approach investors, especially those with foreign experience, may take in 2024. 

Investors may become more risk-averse and careful when making real estate investments due to long-term uncertainty and monetary tightening in developed countries. The upcoming elections may cause delays in decision-making, but overall market sentiment remains positive. 

Why do homebuyers favor low-rise buildings over high-rises?

Homebuyer’s preference for low-rise properties has grown, indicating a shift away from the tall buildings that characterize urban landscapes. Living in one of these is usually more personal and focused on the community because the buildings are typically smaller in number. Low-rise housing provides a welcome diversion from congested, airless urban areas! This trend is here to stay!

For many years, high-rise projects have dominated the urban building typology; however, lately, this has quickly changed, with low-rises emerging as the preferred option. The urban building typology was dominated for a long time by high-rise projects, but in the last few years, low-rises have become the more popular choice. Low-rise housing arrangements have seen a significant resurgence since the COVID-19 pandemic due to the growing demand for large homes, a laid-back lifestyle, and community living. Developers are capitalizing on this trend at a rapid pace. Unquestionably, buyers remain attracted to amenities, but they also value privacy and a caring environment for their loved ones, two things that low-rise buildings provide.   

Let us examine in more detail the growing appeal of low-rise projects.

According to the Indian Building Code, low-rise housing technically refers to buildings up to 15 meters tall with ground plus four floors (G+4). In contrast to high-rise complexes, low-rise buildings house fewer people and have fewer towers. Low-rise buildings offer residents a more personal and community-focused living environment because of their smaller height and fewer residents. These often include extra-large living rooms, distinct entrances, and sometimes even private outdoor areas like patios and gardens. 

Low-rise developments are typically small-scale endeavors performed primarily by local or homegrown developers. Given the new circumstances, homebuyers have demonstrated a striking shift in preference for these projects, demonstrating that quality and renown are not the only factors. Low-rise projects are rapidly gaining favor because buyers are now more interested in the community living, amenities, and exclusivity that these projects offer. 

One developer based in Delhi NCR that has several noteworthy low-rise projects on the Golf Course Extension Road is the Nitara Group. The developer has several builder floor projects open in 3 BHK, 4 BHK, and 5 BHK configurations. With sizes ranging from 342 square yards to 1200 square yards, these residential projects have Simplex, Duplex, and Triplex builder floors. 

Within Sector 63A of Gurgaon is a noteworthy project of Nitara Homes called Nitara Projects Anantraj. With a carpet area of 1950 square feet, it offers 4 BHK apartments. The building has four levels, and each floor has four units. These residential units have a starting of Rs 3.25 crore.  

Growing popularity of low-rise housing 

While high-rise buildings have urban settings, luxury low-rise real estate is rising among Gurgaon buyers. Let us investigate the cause of this change. 

Security and Safety

The increased security and safety of low-rise housing is one of its main benefits. Because gated communities are less vulnerable to structural damage than tall high-rises, they assure natural disasters like earthquakes. In high-rise buildings, elderly and young people may encounter difficulties navigating the staircase if elevators are malfunctioning or undergoing maintenance. This problem virtually vanishes because low-rise housing arrangements have limits to four stories. Low-rise developments also have far more controlled and thorough entry and exit security checks because fewer people reside there. 

In all of its housing projects, Nitara Group provides features like seismic zone IV-complaint structures and three five-tier security systems to allay residents’ fears about their safety. 

Elevators may become stuck, people may fall from great heights, etc. Low-rise housing is the best choice in these situations because it allows them to remain close to the ground without making them feel uneasy or afraid. 

Greater value at resale

Low-rise buildings frequently have higher resale values than high-rises. Low-rise living offers privacy and exclusivity, which appeals to buyers and makes these properties more desirable in the resale market. These homes’ ongoing needs contribute to their increasing value over time.

Reduced upkeep expenses  

Since low-rise housing is more energy efficient, it also has lower maintenance costs, which is another factor that works in its favor. Against high-rises, which create extreme weather conditions that need constant maintenance, like air-conditioning and higher electricity usage, low-rises ensure a balanced temperature and less energy consumption. Also, other maintenance costs are typically easier to handle in a building with fewer floors and a smaller footprint. Homebuyers who want to benefit from homeownership while reducing long-term costs will find this appealing. 

Natural views and housing with low-density 

Compared to high-rise structures, low-rise developments provide a low-density living environment where residents have more space and fewer neighbors. It produces a calm and serene atmosphere that appeals to people who prefer a more sedate way of life away from the bustle of busy skyscrapers. 

Additionally, these arrangements offer greater exposure to nature than high-rise communities, where many towering buildings obstruct the views of the outdoors. Although low-rises have existed for ages, buyers are now taking notice of them due to the chaos of the city, the high pollution levels, and the health risks associated with COVID-19. It has forced them to settle in environmentally friendly properties.  

Large Room 

The abundance of large rooms is one of the benefits of living in a low-rise. Low-rise projects have comparatively larger spaces than high-rise projects, where rooms are typically ten by 10 with built-in amenities like wardrobes in many cases. Nitara homes, for example, have rooms that measure 13’3x 10’6” and 11’6 x 13’6”; However, they do not include large balconies that are 6’ broad. The lobby areas outside the apartments are large and spacious, with wide walking passages, because they have fewer units per floor.  

Specifically, residents benefit from larger living spaces, which make their homes feel more comfortable and accommodating on each floor. Those looking for space to live and unwind will find this feature appealing. 

Cohabitation in gated communities

Many low-rise housing projects, like Nitara Homes, prioritize community living within gated societies. These communities frequently have common areas, shared resources, and a feeling of community among the people living there. In addition to promoting social interactions and a sense of community, this creates a close-knit environment. 

Range of personalization 

One more advantage of low-rise homes is that they are adaptable. Real estate buyers can personalize their living spaces by putting in gardens or outdoor spaces. This level of personalization allows residents to tailor their homes to their preferences and way of life.  

Reduced strain on infrastructure

Because fewer people use the parks, elevators, lounges, clubhouses, swimming pools, and parking spaces, among other amenities, high rises to low rises put less strain on the infrastructure. An area’s population growth would inevitably result in more traffic and a burden on public services. 

In conclusion, the growing popularity of low-rise housing is a reflection of consumer’s shifting tastes. For those looking for a unique, more customized living experience, low-rise living is appealing because of its safety, security, large rooms, community living, lower maintenance costs, higher resale value, and customization options. 

Four real estate markets in 2024 where you might want to invest

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. 

Investment in Real Estate in India

A wise investment can transform our lives and give us the assets we require to realize our aspirations. Today, most of us have various investments in our investment portfolios, including stocks, gold, bonds, government programs, etc. However, real estate has been one of the most overlooked and underrated investments in recent years. Given the enormous economic growth in most Indian cities, the average income has increased, giving us more incentives to invest in the future. Real estate may be your ideal choice if you want to invest. 

The importance of real estate 

Over the years, kingdoms have fought over land, using every means possible to win that priceless possession. The demand for land has endured despite the lack of kingdoms, with everyone vying for a piece of the pie. Prime real estate can be a wise choice to invest in. It offers far above traditional investment options because its demand and value never decline. Everyone aspires to own a home because it can lead to financial success and potential fulfillment. Due to the lack of available land in cities nationwide, investing in even a tiny dwelling can yield benefits, such as rental income or the ability to resell it for a profit. 

Factors to Take into Account Before Investing in Real Estate

An investor with no prior real estate experience could become seduced by the promise of profits and make a loss on a piece of the property. Before parting with one’s hard-earned money for real estate investment, a novice should consider the following factors. 

  • Keep Calm- Most legitimate property transactions take a few days to complete, making buying a property time-consuming. Although many real estate companies promise to finish paperwork within a day, patience can help you get a good deal. Jumping the gun may result in you paying more for the property or buying one that exceeds your expectations. Additionally, selling can delay projects, testing your patience if your investment does not yield any returns for a while. 
  • Research the Property: In today’s market, it’s vital to research before leaving to search for a property. Choosing the right real estate can be challenging with so many projects in the works, as sellers are frequently known for charming potential buyers. The amenities provided, the history of the building company, the materials used, and the surrounding area can all affect the returns on your investment. If you do not investigate thoroughly before making a purchase, you might regret it later and lose money. 
  • Check the Papers: Considering how easily a buyer unfamiliar with the real estate market can fall into buying a property with phony papers, the papers of a property are the most essential considerations to make. Purchasing a property with cloudy titles can result in protracted legal disputes or court cases, effectively making the investment worthless. Legal professionals should verify the authenticity of all property papers because failing to do so could result in you buying a property with its title in dispute. People frequently sell homes for less than market value, which should raise a red flag as such homes may be the subject of litigation or have internal problems with the owner. 
  • Verify Market Rates: Most local governments offer a guideline value to assist investors in determining an asset’s rate. By keeping track of neighborhood trends with the help of the market rate, you can avoid paying more for a property than it is worth. You can extrapolate the returns you may expect in the future by studying market rates and figuring out developments. 
  • Talk to your neighbors: While most of us overlook this advice, talking to your neighbors is a good idea. By gaining firsthand knowledge of a community’s conditions, you can identify any issues or regions where a purchase might suffer. Speaking with them can also help you learn about current market prices, the past of the area, and the potential for future growth. One can get a clear picture of the real estate they intend to buy because neighbors are not salespeople trying to sell you the property. 
  • Calculate Your Finances: It is essential to determine your financial situation to ensure that you accomplish specific goals. Although getting a bank loan is straightforward, it is crucial to consider the interest rate and other costs. 
  • Remain Positive: It is critical to maintain optimism while carrying out a real estate transaction because there will inevitably be times when things do not go as planned. When dealing with sellers of homes, keeping your composure can help you gain more advantages. 
  • In the Indian real estate market, negotiating is essential because everyone is looking for a deal that will increase their wealth. Understanding the art of negotiation can help you get additional freebies like parking spots, furniture, etc. 
  • Real estate investments are typically safer than other investments, but that does not mean they are risk-free. Take this into consideration. In India, legal obstacles and property disputes are prevalent, so one should verify that the property they are interested in is free of obstacles and legal issues. 

Given the shifting dynamics of our times, owning a property may be the wisest course of action. A beginner can choose the right course for investing in real estate by considering these guidelines.