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: The financial crisis in the international market, high interest rates and inflation have made real estate a tough investment option. Real-estate developers are facing a severe funds crunch in executing projects because of the tightening liquidity condition. The general sentiment among the developers is that at least for the rest of the year someone planning to buy a house is not likely to take a final decision. High interest rates on home loans, uncertainty in the markets and expectations of a drop in prices are likely to contribute to buyers putting off plans. We asked a cross-section of people in the industry to identify the city/cities, which they thought were the best bet to invest in the coming times in terms of residential property. And this is what they had to say:

The top Indian cities in terms of real estate investments are definitely the metros — Mumbai, Chennai and Delhi and emerging metros such as Pune, Hyderabad, Bangalore and Chandigarh. Here too it is largely the established and premium pockets that still see a demand from the buyers. The reason being the existing infrastructure and minimum risk involved in investing in prime areas. With an increasing number of industries and multinationals setting up shop in cities like Pune, Chandigarh and Bangalore, the property markets here continue to provide exciting investment opportunities. The current slowdown in the economy and rising interest rates have resulted in value correction in the Indian property sector. Make safe investments considering the distress caused by apprehension about further decline in property values.

—Bobby Mukherji

Principal Architect, Bobby Mukherji & Associates