Economies world over are grappling with the ever-changing geopolitical turbulence, loss of jobs, and the myriad repercussions of the global pandemic. The real estate market is no exception either, but for a few bright spots in the Indian context, that is the South Indian cities. The revised policies have brought about dynamic transformations; reforms like demonetization, the inclusion of GST, and RERA have changed the landscape of Real Estate in the country. Cities like Hyderabad, Chennai, and Bangalore in South India did not lose their growth momentum and have now found a place on the global real estate map.
As per Magicbricks‘s Prop Index Report for Q4 2019, Chennai, Bengaluru, and Hyderabad have emerged as the best-performing markets in India for 2019-2020.
In markets like Mumbai and Delhi NCR, developers are facing a challenge of large inventory pile-ups, as opposed to the situation in the South. Curtailing new launches while the focus remains on completion of delayed projects has been the plan of action for Southern Indian cities like Hyderabad, Chennai, and Bangalore. As per recent statistics, Hyderabad and Bangalore have been listed as Asia’s fastest-growing cities, over 2020-24.
Here’s why housing and commercial real estate is doing well in South India:
01. Strong IT and Start-up Culture
South Indian cities like Bangalore, Chennai, and Hyderabad have seen enormous growth in the information technology industry, public sector industries, and multinationals companies. In the last 2 decades, we seen more and more foreign businesses establishing their back-end IT offices in prime locations within these cities – and hence the increase in corporate real estate demand, which is still not showing signs of slow down. Bangalore is considered to be the start-up capital in all of India. Along with Chennai and Hyderabad, these 3 cities are among the top 10 for start-ups in the country, which now have over 20,000 registered start-ups.
02. Various segments of Housing
South India offers a larger variety of housing options that range from small-scale apartments, boutique condos, to large high-rise projects and luxury townships. The projects offer a diverse set of amenities, based on neighborhood and price points. New developments take into consideration the demand ratio and cater to people’s needs judiciously while continuously transforming the city skylines. Niche variants arriving on the horizon include villa properties at city outskirts and co-living, budget offerings for the younger buyers.
03. Better Lifestyle
Townships offer a broad range of amenities such as gymnasium, park, swimming pool, yoga training facility, supermarket, etc. some of them even have dedicated play areas and cafes. If you also like to be physically active, this township lifestyle is perfect for you. They also often have jogging tracks and tennis courts. In fact, from schools to hospitals; everything is usually available at proximity itself. Living in a township greatly enhances your lifestyle as everything is available at your doorstep.
04. Land at reasonable prices
As opposed to Mumbai and Delhi, the southern cities are less saturated and hence can offer ample availability of land at reasonable prices, in various growth zones. Greater job opportunity in technology, fashion, and other new sectors also results in a higher count of urban and migratory professionals – all seeking better opportunities. And with better-paying jobs comes the capability to invest early with the support of friendly loans.
05. NRI Demand
The combination of robust infrastructure, on-time completion of projects, and highly regarded and mature developer brands makes South Indian cities a hotspot for the NRIs. India’s overall NRI investment in the primary real estate market is estimated to grow to nearly $25 billion by 2022 and a considerable portion of that is expected to be in the South. High capital appreciation, lower land prices make this region attractive for offshore investments.
06. Sturdy Infrastructure
Connectivity and public transport are given a lot of importance in Southern cities, this is made possible because of constant work on the city’s infrastructure. Urban planning, smart design are aspects of technologically advanced cities that are prioritized. The metro connectivity is going to transform the way people travel, the time it takes to get from point A to B, and the entire culture of the urban population – thus impacting real estate positively. A 3-deck elevated corridor is all set to give Chennai’s Old Mahabalipuram Road (OMR) a makeover. This development has compelled residents to reconsider where they live, thereby relocating from old residential zones to the new residential hotspots like OMR and ECR in Chennai.
07. Social Infrastructure
South Indian cities have consistently been more technologically advanced, thereby being at the forefront of education and health. The vast choice in schools, colleges, and medical facilities have made cities like Hyderabad, Chennai, and Bangalore a hotspot for relocating and retiring.
08. Retail Growth
Metro cities in South India have seen a sharp rise in retail and commercial growth over the years. Shopping malls, supermarkets, and leading retail chains have established themselves to cater to the growing demand for millennials. For example, IKEA in Hyderabad is one of the most sought-after shopping destinations all across India. Larger disposable incomes, higher aspirations have opened the gates to these international brands in the South.
South India strongly continues to be a promising market for the Real Estate industry – turning people’s dreams into a reality and investment into wealth.