Mumbai, Thane best bets for NRI realty investment

Dubai - Prices can double or more if you find the right property and location

Property prices in India are expected to start rising in the next one year or so after plateauing for nearly seven years with Mumbai and Thane the best propositions for strong capital appreciation as well as high rental yields, Indian developers said on Saturday.
"If I have a choice and no compulsion to stay somewhere in India, Mumbai is one city which has shown some kind of growth in the last five years and will be best place for investment," Sanjay Mehrotra, national head for sales and marketing at L&T Realty, told Khaleej Times on the sidelines of India Real Estate Show 2019, which concluded in Dubai on Saturday.
"Chandigarh and Ahmedabad are doing well while Delhi is opening up now. Bangalore is doing okay but not showing much of growth. I wouldn't suggest Chennai because it has not done well. So if people are neutral and are willing to invest anywhere in India, then Mumbai should be their first choice," he added.
"There was a spurt in prices in 2008 to 2012 but it plateaued after that and now another spurt is overdue, so prices will start rising in the next one year or so."
Among tier two and three cities, Mehrotra said, Indore, Jaipur and Lucknow are doing well but Bhopal is stagnant.
Organised by the UAE's first English newspaper Khaleej Times, India Real Estate Show 2019 witnessed strong footfall with developers making good deals during the two-day show.
Rais Ahmad, chairman and managing director of Rassaz Group, also believes that there will be a spurt in prices as they have plateaued.
"Demand is increasing, especially in Mumbai as the population is growing."
"It is the right time to invest because prices are very low and buyers can negotiate a good price. We see prices can double or more if you find a right property and location. It should be legally sound," he said.
Viraj Mohile, manager for sales at Raymond Realty, also bets on the Indian commercial capital and its adjoining area Thane.
"A lot of people from Mumbai and other parts of Maharashtra are looking at Thane as a better opportunity because of better infrastructure, schools and retail. Also, it will also be connected to the metro, which will reduce a lot of travel time between the two cities. From affordability point of view, a two-bedroom apartment starts from Rs10 million but in Mumbai it costs not less than Rs25 million," Mohile said.
Vikram Kuchroo, assistant general manager for sales at Hiranandani Constructions, believes that the metro in Thane will be a game-changer, resulting in a good spike in property prices there.
"The metro will be operational in a few of years and will take real estate to another level. A number of A-category builders are operating in Thane so the potential of this place is good," Kuchroo said.
Mubasshir Dalal, assistant general manager for sales and marketing at Shapoorji Palloni, expects Mumbai will see a capital appreciation of 15-16 per cent.
"At the moment, there are two types of investors: Those looking long-term to milk rental yields and those who want to invest for three to four years and then become end-users. For such cities, customers are attracted to cities like Mumbai, Pune and Bangalore. Right now customers are looking at a Rs4 million to Rs10 million average range. So Thane is a good proposition and Pune also attracts customers," Dalal said.
Shyam Vora of Nivasti Developers showcased five projects and received good enquiries.
"Navi Mumbai is robust compared to Mumbai. We do see appreciation in prices in the next 12 months. Once the project is finished, investors will automatically get a 5 to 10 per cent increase from current prices," Vora said.
Indrani Shekar, assistant vice-president for Bangalore-based Brigade Enterprises, says the city offers both good capital return as well as rental yields.
"Average capital return in tje last 12 months in Bangalore was 10-15 per cent. We see good traction there because of affordability. NRIs visiting the exhibition are looking more for both investment as well as personal use," Shekar pointed out.
- waheedabbas@khaleejtimes.com

• India