South is doing better and the answers lie in figures from, real estate consultancies, and even developers from the southern cities of Bengaluru, Hyderabad. To be honest real estate market in South is in better shape than that of the West and the North.
By Varun Singh
South is beating North as well as Western real estate market. We aren’t saying this to please someone, but that is the realty. Recently released reports by major international real estate consultancy firms, figures from developers have forced us to think whether the South Indian cities have taken over the real estate market. The reason is simple, the focus on end users.
Take a note of the recently released study by Knight Frank on Global Residential Cities Index Q3 2019. Hyderabad was the only city amongst the top 20 globally in home price appreciation. While Mumbai stood at a low of 135, Bengaluru was still better at 94. Similarly Pune was at 138, and Chennai was two steps ahead at 136.
In another report by JLL on most dynamic cities the three cities from south were in top five. Hyderabad emerged as the world’s most dynamic city, Bengaluru, was a close second. Chennai was at fifth spot, but the remaining major cities, especially the financial capital Mumbai was at 20th spot. Delhi at sixth, Pune at 12th and Kolkata at 16th.
At the same time even in residential sector, Hyderabad and Bengaluru topped. Another study by Knight Frank stated that Hyderabad witnessed the highest annual rise in home prices during 2019 at 10% and was the only city to register a double-digit growth.
Bengaluru saw a 6.3% YoY rise in home prices, followed by NCR at 4.5%, Kolkata at 3.1%, Ahmedabad at 2%. Mumbai, Pune and Chennai witnessed degrowth in home prices at 2.5%, 3% and 5%, respectively.
Again figures from developers who are heavily from the South shows that the6 are doing better. For example, Ozone Group, a leading developer from Bengaluru says that they have delivered 3.6 mn sqft of residential and commercial space across India with major focus in Bengaluru, Chennai and Mumbai.
If you see their success rate, its majorly in Bengaluru and Chennai. The project list includes the likes of its flagship residential township cum mixed used developments like Ozone Urbana in Bangalore and The Metrozone & Greens in Chennai. In the commercial segment , the group has handed over its signature A-grade development Ozone Techno Park located at OMR, Chennai and has successfully leased out its 1 mn sqft of office space to marquee clients like COGNIZANT and HCL.
Another developer Prestige Group recently launched several projects again with a focus on South. For example they inaugurated 3 residential and 4 commercial developments across Bengaluru. The group even launched a 25-acre township destination again in Bengaluru.
What is driving the market in south better than the west and north is the focus on end users, that is the home buyers. While certain segments in Western and Northern India are still dependent on investors to an extent.
The focus down south has been that for end users. The IT boom did help the markets of South to an extent, but then keeping it intact even in a slowdown period is what makes it special.
