Top Cities for Property Investment in India 2022

Every Indian has a dream of owning their homes and this has been considered as a matter of pride and prestige. Real estate assets are long-term financial security that is capable of earning capital appreciation and a stable income.

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The real estate market is diverse in India compared to those outsides. Thus, one of the major factors to consider while making a real estate investment decision is the location as it translates into profits. While making an investment, it is very important that you study the location to check whether the area is prone to economic developments. Industrial experts have stated it to be better to invest in developing areas than in developed areas as the price of the property will be currently lower but will surely increase in the future, thus earning you a handsome return on your investment. 

The pandemic has affected the real estate sector largely. Even though work from home became a new trend and housing became a necessity, several investors held back from investing due to the uncertainty that the pandemic brought in. However, the reports of a leading real estate platform indicate that the markets in cities such as Mumbai, Pune, and Bangalore are recovering at a faster pace. The recent ease of living index published by the Ministry of Housing and Urban Affairs provided termed Bangalore and Pune to be the topmost cities to live in. 

While investing in real estate, it is also very important that you ensure you have access to public transportation and basic amenities. You should also check the infrastructural developments in an area to determine whether the purchase is worth the money spent on it. Let us look at some of the best locations in India to invest in.

Where to invest in India?

The question of where to invest and why to invest are equally important. You must know where you should invest to earn the maximum return on your property. If you are considering investing in rental properties, it is also very important that you analyze various market conditions before making your investment decisions. Some of the best locations for real estate investments in India include:

Mumbai

Over the past few years, Mumbai has been treated as one of the main centers for real estate investment despite the skyrocketing prices. The main reason for this is that it is the financial capital and has the strongest economic growth in all of India. The Mumbai Metropolitan region has been recognized as one of the major attractions by investors as it is one of the major contributors to India’s overall GDP.  

The residential market of the Mumbai Metropolitan region hereby referred to as MMR, showed launching and sales activities in 2020 despite the pandemic. MMR also recorded a decline in the number of unsold inventories by 6% which was also better than the previous years as the decline in unsold inventories and year-on-year stood at 3% in the past 7 years.

Factors such as the multiple metro links, Mumbai Trans Harbour Link, etc. have further attracted investors to invest in Mumbai. The builders and developers are also attracting buyers to invest as they are offering great discounts on the properties. The discounts coupled with the stamp duty reduction granted by the Maharashtra government have efficiently evoked consumer sentiment.

Pune

Pune has been recognized as one of the most top livable cities along with Bangalore. The first half of 2020 saw a dip in the real estate sector due to the pandemic. However, the second half showed a rapid recovery due to certain factors and this is expected to boost and restore the market in 2022.

The major factor contributing to the rapid growth of the real estate market in Pune is the initiative taken by the Maharashtra government by reducing the stamp duty imposed on the property. This has been recorded as one of the key reasons for the increasing sale in Pune as the second half of 2020 accounted for a sale of 58%. The tax was reduced to 2% until the end of December while the revised charge from January 2022 stood at 4% which was successful in evoking consumer sentiments as it was a very significant tax saving option. In addition to this, the first quarter of 2022 is witnessing an increase in the sales volume as people are trying to purchase homes to avail the benefits of Long-Term Capital Gains Tax (LTCG Tax) provided under Section 54 of the Income Tax Act, 1961. The combination of the negotiable price range, affordability, and low-interest rates have boosted the residential market in Pune.

Technology integration via virtual home tours, video conferencing with prospect clients, targeted digital campaigns, and webinars are some of the other technological factors that contributed towards the rise in property demand in Pune. The metro rails in Pune are expected to boost the realty market further in 2022 as it will provide better connectivity to the investors.

Hyderabad

The development of the IT sector has led to an increase in demand for commercial spaces in Hyderabad. Hyderabad is known to provide the best quality in living conditions due to which it is crowned as the best city in India for real estate investments. 

Gachibowli is an IT hub in Hyderabad which hosts several multinational companies. It is also proximate to some of the prominent business parks like the Information Technology and Engineering Consultancy City (HITEC City) and is also just 30 minutes away from the Rajiv Gandhi International Airport (RGIA). 

The recent announcement by the GMR group regarding the launching of the aerocity in Hyderabad is also all set to boost the demand for properties in Hyderabad. The Hyderabad real estate market holds some of the spectacular properties at excellent and affordable rates in comparison to other metropolitan cities in the country. Hyderabad also offers a wide range of real estate investment options such as commercial, residential, co-living, senior-living, etc. which further attracts investors.  

Also Read: Investment Opportunities in Hyderabad

Bangalore

Bangalore is one of the top spots for commercial as well as residential investments. The demand for real estate investments in Bangalore is highly dependent on its IT sector which generates large employment opportunities. Whitefield, Sarjapur Road, Electronic City, Hebbal, Yelahanka, Nayandahalli, etc. are some of the top spots for investing in Bangalore. 

Some of the prominent commercial players of Bangalore include Dell, Aegis, Hewlett-Packard, Accenture, Infosys, Wipro, Tech Mahindra, and Tata Consultancy Services. Thus people from different parts of India migrate to Bangalore in search of better employment and end up settling in Bangalore due to factors such as security, quality education and healthcare, nightlife, and other recreation facilities. 

Commercial and residential investments in Bangalore can earn you high capital appreciation and also high rental income. Investing in Bangalore is never disappointing as the city is growing rapidly in terms of not just commercial and residential investments but also due to its superior connectivity and infrastructure developments. 

Also Read: Ultimate Guide for Bangalore Real Estate Investment

Chennai

Chennai is also another hotspot for real estate investments. Superior connectivity, infrastructure, commercial and industrial development, access to quality education, healthcare, and recreational facilities, have been some of the main attractions of Chennai. Some of the major projects to further develop the connectivity in Chennai includes the IT Expressway project in Thuraipakkam, Thoraipakkam Pallavaram Radial road project, etc. 

The automobile and IT sectors have led commercial investments in Chennai. Some of the prominent players in Chennai include Flextronics, FL Smidth, Saint Gobain, Michelin, Renault, and Nissan. Due to the increase in working and student population, Chennai has witnessed development in its residential sector as it now offers a wide range of properties for investment. 

OMR has also been an ideal location for real estate investments due to its economical and commercial developments. The IT companies have been instrumental in opening up employment opportunities which have led to people from different parts of India migrating to Chennai.  The properties in OMR are also placed at an affordable rate by reducing the average size of the property. OMR also offers access to facilities like ATM, gyms, healthcare facilities, general stores and shopping malls. It is also a preferred location for investment as the properties offer serene and affluent living facilities. The property in OMR also appreciates rapidly, making it an ideal location for real estate investments. 

Also Read: Commercial Property Investment in Chennai

Reasons why the Indian real estate market is growing at a faster pace

Real estate has been preferred by most investors due to the multiple benefits that it offers. Some of the benefits of investing in real estate has been discussed below:

  1. It provides a sense of security amidst all the uncertainties. In a recent survey conducted by a leading portal, it was recorded that 92% of the respondents of the survey wanted to secure themselves a physical asset. The main reason why the respondents believed having a physical asset was better is that such assets are less volatile even if they cannot earn you sudden yields. 
  2. Residential real estate is considered to be one of the best ways to invest your money as it offers you maximum sustainability. 
  3. Real estate offers high returns on investment (ROI) and is also capable of earning you passive income in the form of rent. 
  4. The pandemic has led to the builders providing various offers and discounts on the property. Thus by investing now, you can earn high capital appreciation once you sell the property.
  5. Since home loans have been sought out as one of the best ways to finance your property, the reduced home loan is expected to trigger property sales and increase cash flow. 
  6. The depreciation in the value of the Indian rupees has made real estate properties in India an attractive choice for the NRIs as well. 

Let us further discuss some of the ideal locations in India for investing in your real estate properties. 

Real estate is one of the best options for investment. While planning your real estate investment, it is important that you evaluate different markets and their benefits to find your potential property. Identifying the right location also increases your profitability for the investment. Prime locations offering top-class facilities creates a desire in the minds of potential investors and this, in turn, creates demand for the property.

Assetmonk is a smart platform that provides hassle-free investment opportunities in top cities like BangaloreChennai, and Hyderabad. Assetmonk offers a wide range of properties ranging from commercial spaces to residential spaces, senior-living, and co-living. Visit our website for more details.

Top Cities for Property Investment in India 2022 FAQ's:

Chennai, Bangalore, Pune, Mumbai, and Hyderabad are some of the top locations to invest in India now as these prime markets have started offering properties at much more affordable rates with builder discounts which have been granted. States like Maharashtra and Karnataka have also offered a deduction on stamp duty which has further reduced the cost of buying properties in these States. 

Yes, real estate is one of the best options for investment in 2022 as the cost of purchasing property is considerably lower than before due to builder discounts and stamp duty reductions. The reductions granted on the home loan interest rates and the introduction of technologies such as blockchain have made real estate a good form of investment.

Mumbai has been a dream to many due to its rapid developments in the commercial arena. Mumbai offers quality education, superior connectivity, excellent nightlife, and great scenic destinations. 

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