A peculiar feature about Real Estate Investment is how the Return on Investment can somewhat be predicted to near accuracy. The middle class and the upper – middle class strata highly depend on loans to buy a property. Hence several factors like the locality, amenities, and infrastructure play a pivotal role in finalizing the property.
Cities in India are home to 31% of its population and contribute 63% to the nation’s GDP. These numbers are susceptible to growth in the coming years as cities are bound to develop.
Investing in top cities’ Real Estate is an uphill climb, but how does one decide? For this, we need to classify levels.
Tiers of Cities in India
Indian cities can broadly be divided into three tiers based on the population density, by the Government of India. These tiers have their own boon and bane aspects. Despite it all, these cities are budding with growth and development and are the best options for various types of investments.
The First Tier consists of cities that have high population density. This tier consists of major airports. This is followed by top education, hospital, and high living expenses. Mumbai, Pune, Ahmedabad, Bengaluru, Hyderabad, Kolkata, Chennai, and Delhi make up the First Tier. Cities of this tier have high job opportunities but also high rates of pollution.
The Second Tier consists of cities that have relatively lesser population density and a majority of smart cities. Living expenses here are comparatively lower while the quality of life is higher. Infrastructure and transportation facilities here are good. Cities in this tier do not face traffic issues. This tier consists of the majority of the nation’s smart cities.
Top Cities for Real Estate Investment
It is one of the oldest cities to become a metropolitan in India. The financial capital of India and is one of the fastest growing cities in the world. Real estate investment here might be expensive due to its growth rates. But the city has an amazing return on investment due to the promising nature of development here. Investing here is preferred if you are the end-user.
2. Navi Mumbai
The latest addition to the list is the up and coming city adjacent to its parent. Planned and developing, the city has shown consistent growth over the years. Property and projects here are far cheaper than in Mumbai. The city has better connectivity and metro rail work is in progress. The city also has bigger plots, comparatively. Investment here has good returns within a few years.
The budding IT capital of India is a grand cosmopolitan. The city has ample amenities, modes of transportation, and job opportunities. Bengaluru as a city has a lot to offer its people in social, cultural, and economic sectors. The city is booming with developments in Real Estate and while it is cheaper than the ones mentioned above, it might not be the same in the next 5 years.
Just like Bengaluru, Hyderabad is also a booming IT sector. A cosmopolitan, Hyderabad has a lot of job opportunities that attract youth from various parts of the country. The city has potential for both commercial and residential Real Estate Investments. It is also cheaper and hence affordable. Hyderabad also has reachable civic amenities.
Metropolitan cities have ample amenities and great returns on investments. These make it ideal for commercial and residential properties but not plots. This is where smart cities come in. Smart cities, majorly Tier 2, have ample potential to develop. These places have way cheaper Real Estate Investment than the ones in metros. Return on Investment might be slow here but has consistent growth in residential and commercial properties.
Smart cities consist of core infrastructure elements like adequate water supply, sanitation management, consistent electricity supply to name a few. This coupled with an abundance of land makes it an ideal place to buy huge plots. Due to promising development schemes, and abundant land, these cities attract crowds away from the hassle of city life. Cities like Pune, Chennai, Jaipur, Kochi, and Coimbatore are just a few cities on the list.
The tedious wait of Real Estate
If you know Real Estate, you might be aware of the problems that come with it. For developers, it is a large number of unsold inventory and a longer sales life cycle with a lesser percentage of confirmed sales. The sluggish rates of sales cycle is another major challenge that delays the period to 3 – 6 months.
Trust is another issue that stands mutual to developers and buyers. Inaccuracies about the project, false claims, and lack of proper visuals of the project are the downsides that make buyers delay their process of decision making.
What is the solution?
Kagaay is a gamified sales app that deals with the buying and selling of properties that are residential and commercial. Kagaay is designed to pull in sales by reaching out to the in-market audience. The app specifically deals with its major issues, namely, large amounts of unsold inventory and a prolonged sales life cycle with a lesser percentage of confirmed sales.
The above mentioned issues only seem to address issues from the developer’s perspective; it does not stay limited to that. As a PropTech platform, it also serves its buyers with Virtual Reality and drone videography of the property to ensure that every single detail, from the surroundings to the amenities, reaches the buyers. A basic EMD (Earnest Money Deposit) must be handed over and can be deposited if ever the buyer claims that something has not been served to them as shown.
Kagaay also gamifies sales pulling the industry out of delayed sales processes and fast tracking the emotional step of buying a home.
Buying a home had never been easier.