Data indicates that these three cities remained the most active markets in 2020 – together accounting for a 67% share of the total housing sales recorded in the top 7 cities
Mulund and Chembur, suburbs of MMR, have been the best performing micro markets in the city
The Mumbai Metropolitan Region (MMR), Bengaluru and Pune are currently the top three markets for buying homes for both end-use and as investment. Property prices bottoming out in MMR post-covid has helped move inventory in India’s most expensive city while the boom in the IT/ITeS sectors during the lockdown post-COVID has worked well for the IT-centric realty markets Bengaluru and Pune.
Data indicates that these three cities remained the most active markets in 2020 – together accounting for a 67% share of the total housing sales (of approximately 1.38 lakh units) recorded in the top 7 cities, and 60% of all new launches (approximately 1.28 lakh units), according to real estate consultancy Anarock.
“Given the ongoing uncertainties in the stock market and financial sector, housing is currently being viewed as one of the safest long-term investment bets," said Prashant Thakur, Director & Head - Research, Anarock Property Consultants. "While the stock market prices are at their peak, property prices have bottomed out and various offers and discounts result in further reductions in acquisition costs. Affordability of homes in top cities is also at its best.
MMR's real estate market remained active in 2020, despite the pandemic. Its unsold housing inventory declined by 6% - the highest in 2020 as against the previous years. Ongoing infrastructure projects such as multiple metro links, Mumbai Trans Harbour Link, the coastal road have made the city and its adjoining regions a favourable investment destination.
Mulund and Chembur, suburbs of MMR, have been the best performing micro markets in the city, with property prices growing 24% and 20% respectively from 2013-2020. The average property price in MMR towards 2020-end was ₹10,610 per sq. ft.
Bengaluru's housing sector has consistently withstood the test of time, emerging far more resilient than most other major cities. Being the predominant IT/ITeS hub, Bengaluru is an evergreen property investment destination. The average property prices in the city currently hover at ₹4,955 per sq. ft. - which is far more affordable than most other top cities, with Electronic City and Whitefield reporting the best price appreciation.
Pune’s suburbs of Wakad and Wagholi have reported 18% and 17% price appreciation respectively from 2013-2020. Over the 7-year horizon, Pune saw the highest rise of 38% in average property prices between 2013 and 2020 and currently hovers around ₹5,510 per sq. ft. in 2020.