Mumbai: Mumbai’s Wadala and Chembur suburbs and Ulwe in Navi Mumbai are India’s top residential locations to invest in, with property prices in these areas forecast to increase by 133%, 125% and 145%, respectively, in five years, says Knight Frank India.
The property consultant identified 13 locations across Mumbai, the national capital region (NCR), Bangalore, Chennai and Pune as the top investment areas in the country.
Rs.3,200 a sq. ft to Rs.15,000 a sq. ft, and price appreciation expected in the range of 91-145%, residential real estate will emerge as a promising asset class for the next five years, Knight Frank said in a report released on Tuesday.
India’s western region has the highest number of promising residential investment options with three destinations in Mumbai and four in Pune, according to the report.
The performance of India’s information technology industry will have a major bearing on the realty markets of cities such as Bangalore, Chennai and Pune, it said.
“Our research has indicated that the direction of movement of employment and infrastructure development within a city determines the growth of its real estate market,” said Samantak Das, director, research and advisory services, Knight Frank India.
Knight Frank said its report is based on an assessment of real estate drivers such as employment, physical infrastructure, connectivity to important locations, access to social infrastructure and land availability, among others.
As for locations in Mumbai, Das said “the city’s real estate market would grow in the north-east direction and as a result we expect Ulwe, Chembur and Wadala to be the biggest beneficiaries of this growth. The price appreciation in these destinations would far exceed the appreciation in any other region in the country.”
Wadala and Chembur will benefit from their proximity to premium office markets and upcoming infrastructure projects like the monorail and the eastern freeway project, while Ulwe will gain from the proposed Seawood-Uran suburban rail network, the report said.
Mumbai city will witness rapid commercial activity that will result in a 63% increase in occupied office stock in the next five years, it added.
NCR, the biggest residential market in the country, is a rung behind Mumbai in terms of India’s top residential locations to invest in, with Noida Extension and Dwarka Expressway taking the fourth and fifth spots, respectively.
According to the Knight Frank report, of the 518,200 residential units launched in NCR from 2007 to 2012, 145,395 are in Noida and 119,404 in Gurgaon. Prices in Noida Extension are expected to appreciate by 111% to Rs.6,760 a sq. ft by 2017 from the current price of Rs.3,200 per sq.ft.
Knight Frank identified five other locations that it expects to gather momentum beyond 2017: Yelahanka in Bangalore, Neemrana in north-eastern Rajasthan, Narela in north-west Delhi, Manesar in south Gurgaon, and Ranjanpada in Navi Mumbai.