The year 2024 is expected to be all about infrastructure projects such as new metro lines, expressways and airports shaping homebuying behavior.
The year 2024 is expected to be all about infrastructure projects shaping homebuying behavior. New metro connectors, expressways and airports – both newly operational or upcoming are likely to dictate how real estate markets perform- both residential as well as commercial.
The upcoming infrastructure facelift will act as a catalyst for residential activity in the influence zones. Catchment areas along project corridors will witness significant capital value appreciation, attracting investors and end-users alike.
“As infrastructure projects get completed throughout 2024, peripheral areas will become integrated with central and suburban areas, resulting in homogenisation of activity across key residential pockets of respective cities,” says Badal Yagnik, CEO, Colliers India.
Real estate developers are also likely to expand into new geographies
Owing to untapped potential and increased preference for comprehensive offerings in gated communities of tier II and III markets, organized residential real estate is well poised to embark on the next growth phase in markets like Vadodara, Nashik, Lucknow, Jaipur, Chandigarh, Coimbatore, Mysore, Kochi, Indore, Bhubaneshwar, Guwahati.
“Investors will increasingly look for residential investments in these cities which have a higher upside potential compared to Tier I cities. Developers are likely to infuse quality supply in such emerging markets and peripheral locations of metro cities as well,” said Yagnik.
Here are a few markets that homebuyers and investors can keep an eye out for.
Gurgaon
In Gurgaon, the real estate market that buyers may want to look out for is Dwarka Expressway.
In Gurugram, Dwarka Expressway passes through new sectors such as 113, 112, 111, 110, 109, 108, 107, 106, 104, 103, 102, 99, 88B, 37D, 36A, 36B etc. In 2023, the Union Cabinet had approved the metro line that is expected to connect new and old Gurugram with an extension to the Dwarka Expressway near Sectors 101-104.
There are several premium and mid segment housing complexes along this stretch. Local brokers say that the property rates in the area are in the range of ₹8000 to ₹20,000 per sq ft depending on the project and location. Rentals in the area start at ₹20,000 per month.
According to a report by Savills India, a global property consulting firm. The average capital values of completed and under-construction properties peak over the last five years with 36% and 25% YOY growth registered at city level respectively in Gurgaon. Both categories, under-construction as well as completed properties saw a notable increase in the average capital value between 12% to 45% YOY.
New Gurugram and Dwarka Expressway were the top performing micromarkets with an annual growth of 45% and 21% respectively in average capital values of under construction properties.
Noida
In Noida, prominent markets include Sector 150, Greater Noida West and a few residential sectors along the Yamuna Expressway that are relatively close to the upcoming Noida International Airport.
Greater Noida West or Noida Extension is also an area that investors and homebuyers may want to consider in 2024.
A 2BHK unit can cost anything between ₹60 lakh to ₹80 lakh in the area and over a crore for a 3BHK unit.. Rents for two-bedroom housing units range from ₹15,000 to ₹20,000 per month, while for three-bedroom flats, it is ₹17,000 to ₹25,000, depending on the size and the location. There are a few serviced apartment projects also coming up in the area, local brokers active in the area said.
Mumbai
In Mumbai, homebuyers and investors may want to give a serious thought to areas located along or close to the Navi Mumbai Metro that started operations a few months back.
These micro markets include Taloja, Pendhar, Kharghar and Belapur that are on the route. Most properties in Taloja command an average price of around ₹6000 to ₹ ₹8000 per sq ft and these are expected to go up on account of the metro connector. Rents too start at around ₹10000 per month, say local brokers.
Another hotspot to watch out for is a tony area called Ulwe in Navi Mumbai. The 22-km Mumbai Trans Harbour Link (MTHL), that connects Mumbai and Navi Mumbai passes through this area. Capital rates in this area have gone up on account of this new infrastructure, so much so that two bedroom apartments are now commanding a price of more than ₹1 crore. Rents too are anywhere between ₹10,000 to ₹20,000 depending on the location and apartment block, say local brokers. The upcoming Navi Mumbai International Airport is also expected to have an impact on property prices in the Navi Mumbai area.
Most high-end deals were closed in the South Mumbai area in 2023, famous for apartments and bungalows in Malabar Hill and Walkeshwar. The trend is expected to continue in 2024. Several redevelopment projects are also coming up in these areas. Listed real estate players, including Lodha and Godrej Properties, not to mention K Raheja Corp, Kalpataru are all active in these areas. Most of these high-end residential apartments are priced at anything between ₹35,000 per sq ft and ₹1.50 lakh per sq ft. Rents can start from ₹1 lakh, depending on the location of the property.
The commencement of metro line 2A and 7 between Dahisar and Andheri has favourably impacted the demand for rental properties, especially in the micro market of Western Suburbs Others. The market witnessed significant demand for rental properties in Kandivali and Borivali locations from student population commuting by metro to colleges in Andheri and Vile Parle locations, hence leading to an 8% YOY rise in rental values, a report by Savills India has said.
Bengaluru
The year 2023 saw the Purple Line becoming fully operational in Bengaluru. The corridor between Kengeri in West Bengaluru and Whitefield became fully operational in October.
Local brokers are of the view that investing in properties along this corridor can be considered both for self use as well as for rental income.
Prices in areas such as Indiranagar, Koramangala, Whitefield, and MG Road have already witnessed a 20-30 percent increase over the last few months, they said.
Areas located in the outskirts of KR Pura and Whitefield can also be considered as they too are witnessing traction after the metro became operational, they said.
While average rents at city level grew by 5.8% YOY, South and North Bengaluru saw the highest rental growth of 6-7% YOY in premium residential developments, a report by Savills India has said.
Source : HT
