Residential Spots to Look Out for in 2010
Amidst the recent turmoil faced by India’s real estate industry, the residential sector has emerged as the sole bright spot for retail investors. Although the residential sector did suffer the effects of the global downturn in 2008 and 2009, it has begun to show signs of stability in many markets and even recovery, in certain cities.
Whether this trend will continue, depends largely on economic factors (mortgage rates, GDP growth, labour, market stability, etc.) and on prudent decisions by developers on issues relating to prices and quality of product being offered.
An analysis of residential markets across India, across a variety of parameters including affordability, investment yield, absorption momentum, supply overhang, commercial developments, demographics and migration trends, has identified the following top 10 residential real estate investment hotspots for 2010 and the factors working in their favour. Massive infusion of commercial office and retail space – the present 22 million sq ft office space is expected to grow to 40 million sq ft, by 2012.