Ulwe in Mumbai has emerged as the country's top destination for investment in the residential real estate where housing prices are expected to jump by 145 per cent over the next five years, according to a report by global property consultant Knight Frank.
Wadala and Chembur in Mumbai are at second and third positions in the list of 13-top residential destinations from an investment point of view, with price appreciation of 133 per cent and 125 per cent, respectively, during 2012-2017.
In Delhi-NCR region, the consultant said Noida Extension and Dwarka Expressway are the best locations to invest where housing prices are expected to rise by 111 per cent and 108 per cent, respectively, by 2017. Noida Extension and Dwarka Expressway are ranked 4th and 5th in the list.
Medavakkam (Chennai) ranks 6th with price appreciation of 103 per cent, followed by Hinjewadi (Pune) 100 per cent, Tathawade (Pune) 98 per cent, Ravet (Pune) 97 per cent, Hebbal (Bangalore) 94 per cent, Pallikarnai (Chennai) 93 per cent, Wakad (Pune) 91 per cent and KR Puram (Bangalore) 91 per cent.
Out of these 13 destinations, housing prices will double fastest at Ulwe (Mumbai) in 3.4 years ad slowest at KR Puram (Bangalore) in 5.5 years.
In its report 'India's Top Residential Destinations To Invest In', Knight Frank has identified 13 destinations in the country spread across Mumbai, Delhi-NCR, Bengaluru, Chennai and Pune. The report addresses the need of the house buyer from an investment point of view in the next five years.
"Notwithstanding the slump in the real estate market, the report unravels destinations like Ulwe in Mums as the most promising investment destination with estimated price appreciation of 145 per cent," Knight Frank said.
Ulwe will immensely benefit by the upcoming Seawood-Uran suburban rail network, which shall connect it to the prominent office hubs through a mass rapid transport system, it added.
With property options ranging from Rs 3,200 per sq ft to Rs 15,000 per sq ft and price appreciation in the range of 91 per cent to 145 per cent, residential real estate will emerge as promising asset class for the next five years.
The western region has the highest number of promising residential investment options with three destinations from Mumbai and four destinations from Pune, the report said.
The performance of IT/ITeS industry will have a major bearing on the real estate markets of cities like Bengaluru, Chennai and Pune, it added.
Commenting on the report, Knight Frank's Executive Director- Retail, Advisory & Hospitality Gulam Zia said: "With property options ranging from 3,200/sq ft to 15,000/sq ft and investor returns in the range of 18.6 per cent - 29 per cent pa residential real estate will emerge as a promising asset class for the next 5 years".