Latest survey by property firm Knight Frank has revealed that out of the top 13 cities, Noida extension in NCR is expected to generate the highest returns for residential real estate investors over the next five year.
The report seeks to identify areas that will develop because of factors such as job creation, infrastructure development and lifestyle change. “We identified 100 cities using banking penetration, hotel room demand, and air passenger traffic as surrogates for business activities. For infrastructure development, the current and proposed investment in infrastructure were taken as proxies,” said Samantak Das, director, Kinght Frank.
The cheapest areas identified by the study are Noida Extension in NCR and K R Puram in Bangalore, where prices range around Rs 3,200 to Rs 3,245/square foot. At the other end are Wadala and Chembur, where market prices reign in the region of Rs 12,000 to Rs 15,000/sq ft.
llion units does not reflect the demand for housing but the need. Employment generation will translate that need into demand by increasing affordability, he said, adding, “Our research is targeted at the end-user and not those who are looking at property for self occupation. We have projected the appreciation net of transaction costs but have not taken into account either the rental income or expenses for maintaining the property. In any case, the rental income will only be around 2%.”
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