Gurgaon, Mumbai top locations for housing

Written by Sajan C Kumar | Chennai | Updated: Mar 17 2010, 08:49am hrs
Gurgaon and Mumbai have emerged as the top destinations for residential investment in the country. Both have seen a massive infusion of commercial and retail space owing to residential demand, which in turn was spurred by a growth in employment opportunities, according to the fourth quarter Asia Pacific Property Digest by global real estate consultant Jones Lang LaSelle. The residential market in both the regions witnessed a price correction of 25-30% from their peak values which presented opportunities to end-users and investors alike.

Despite being hit hard by the recent turmoil, the residential sector of the crisis-torn Indian real estate industry has emerged as the sole bright spot for individual investors, the digest ranked Noida, Pune, Bangalore, Chennai, Hyderabad and Kolkata behind Gurgaon and Mumbai. The six cities, which are witnessing an influx of IT/ ITeS employees, also provide residential units at affordable prices. However, infrastructure continues to remain a concern across most of these cities as it is unable to keep pace with the growth in population. With the exception of Bangalore, oversupply will be a concern in the short term due to large number of projects launched over the past 3-4 quarters.

Analysing the contours of the top destinations, the digest said the downturn has led to new opportunities at affordable prices in Gurgaon. The presence of Tier-I developers and quality development, together with the Metro, is expected to improve connectivity.

The commercial city of Mumbai has witnessed high income demographies and high investment acitivity levels across various price bands. The relative affordability in suburban markets like the eastern suburbs, Thane and Navi Mumbai, has been attracting investors in a big way.

In Noida, the reasonable price range has led to an increased absorption momentum. The excellent connectivity through the existing road infrastructure and the Metro has triggered investors' attention.