Industry pundits believe that a wave of consolidation is imminent in the Indian real estate sector. This, they say, is due to increasing capital intensity, lower return profiles, subdued prices, and a discerning consumer looking for branded players with low execution risk. And leading the uptick are the south Indian states. Here’s a look at the figures and why they are inspiring!
During the current Covid19 induced uncertainty, completed and ready to move in segments are seeing a huge spike in demand. The demand is also high for affordable and mid-segment projects. The Southern markets including Bengaluru and Hyderabad have seen the completed projects sell faster. Chennai also has sold over 90% of completed projects during this period.
According to Anuj Puri, Chairman, ANAROCK Property Consultants, “Predominantly driven by end-users from the IT/ITeS sector, the conservative housing markets of the Southern cities also benefit from the proactive project completion focus of developers active there.”
So this brings us to the basic question, why south India? The answer is very simple. Presence of robust infrastructure, Strong IT and Start-up growth, Availability of land at reasonable prices, Housing demand across segments, High retail growth, Social infrastructure and increased demand from NRIs is the main reasons why South India is emerging as a major real estate hotspot. Add to it the factor that the cost of living in smaller cities are economic in the south too.
The sentiment that is working in favor of the developers in the south is being ‘secure from the pandemic’ aspect in the post-COVID-19 world to opt for ready possession homes. Mid-size and affordable homes are seeing increased interest from resident Indians and young NRIs. Luxury homes, 3 bedroom, and 4 bedroom homes are also witnessing increased demand from NRIs. During the lockdown, spacious homes have also garnered an increasing interest by home buyers owing to the work from home scenarios.
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