In a report released by PropEquity, a real estate data, research and analytics firm, Bangalore has emerged as the number one destination in most of the parameters evaluated on for studying India’s top real estate destinations. Suprisingly, Gurgaon has dropped to number 10 position as the region is marred by project delays, expensive properties and a demand & supply mismatch.
Not just Bangalore, this latest report by PropEquity puts the Southern region of India at the top as three out of the top four cities are Bangalore (1), Chennai (3) & Hyderabad (4). These cities have topped over 50% of the parameters evaluated in the research. Bangalore has emerged as the best city amongst the top 14 cities in India and has also ranked number 1 on 4 out of the 10 parameters evaluated ( i.e. size of the market, CAGR of absorption and total unsold inventory to yearly absorption ratio).
Pune has come a close second and has been solely responsible for helping the western region to gain the second spot. The NCR region has failed to make its mark on any of the parameters evaluated and thus has low regional as well as city rankings.
“Noida, Greater Noida, Ghaziabad and Faridabad on the basis of the evaluated parameters are not in top 10 cities of India, only Gurgaon continues to remain on the list at the tenth position. On the other hand Southern region has performed relatively better across all the paremeters and we expect this trend to continue going forward,” Mr. Samir Jasuja, CEO and Founder at PropEquity said.
Top 10 cities in the list are 1) Bangalore 2) Pune 3) Chennai 4) Hyderabad 5) Ahmedabad 6) Thane 7) Kolkata 8) Mumbai 9) Navi Mumbai 10) Gurgaon. Noida, Ghaziabad, Greater Noida, and Faridabad are at 11th, 12th, 13th and 14th position respectively.
Ten key parameters have been taken into account to generate the rankings, including the price, supply, absorption, inventory, and new launch trends. Study has also looked at execution delays and the size of the market in value terms.
Mumbai, which ranked 1st five years ago, has now slipped to the 8th position, while Bengaluru, which did not even figure in the first five cities, has climbed to the top.
Overall, the city which have fallen the most in rankings is Noida (from 4th to 11th) and Mumbai (from 1st to 8th), while the cities which climbed the most is Hyderabad (from 10th to 4th).
In terms of regions, the southern region, which ranked 3rd out of the four regions, has overtaken the northern region in regional rankings while it has become 1st at the city level.
All NCR cities occupy the bottom rankings, depicting the weakness in the region.
* Realty prices have remained at realistic levels and appreciated moderately.
* It is has primarily been an end-user market so did not get adversely affected when investors started to withdraw from the market in the last couple of years.
* Developers are not over stretched as they have launched smaller projects and are well capitalized. The land prices in the south are also much lower than the northern & western markets.
* Many of the real estate projects in the Southern region are sold post construction or when they are about to be completed, which leads to an increase in homebuyers confidence.
* Developers are also not heavily dependent on cash flows from sales to fund the projects and manage their finances more efficiently.
* South Indian region has evolved as the IT hub of India since last decade and continuous increase in demand of IT space during last few years has maintained the end user driven demand in these cities.
Project ratings
VBHC Value Homes Pvt. Ltd., the pioneer of affordable housing in India, has announced new project ratings that have been assigned to it by CRISIL, a global analytical real estate ratings company.
Five projects from VBHC bagged among the top valued accreditation, each rated project garnering one of the highest ratings in the micro market of its operation.
CRISIL’s Real Estate City Star ratings reflect on the quality of the project, legal documentation and financial planning and innovation.
The ratings provide city specific all-round assessment of real estate projects. The ratings awarded out of 7 stars, evaluate two critical needs of the realty sector: improved transparency and objective benchmarking of projects.
Vaibhava Anekal received 6 stars whereas VBHC Vaibhav Bhiwadi, Vaibhav Palghar Greens (phase 1) and Vaibhava Kengeri (Phase 1) received 5 stars ratings from CRISIL. The Vasind Hills project was also assigned 4 stars.
P.S. Jayakumar, Managing Director, VBHC Value Homes Pvt. Ltd. said, “The rating from an esteemed organisation like CRISIL reiterates our commitment to quality standards.”
