Tier-2, Tier-3 cities emerge as new hotspots for real estate investors; Bangalore favourite for NRIs
Real estate investment is gaining traction as the conducive reform-driven market environment and government sops have breathed life to long-term investors.
Real estate investment in India is taking a new turn as realty investors are favouring tier-2 and tier-3 cities due to lower prices and improving infrastructure in such cities. Among the non-resident Indians (NRIs), Bangalore is still the favourite destination for real estate investment in India. Industry insiders say the conducive reform-driven market environment and government sops have breathed life to Indian real estate. Long-term investors with realistic returns expectations are returning.
Speaking on the development in real estate investment Anuj Puri, Chairman, ANAROCK Property Consultants said, "Tier -2 and tier- 3 cities have emerged as the new investment hotspots thanks to low property prices and improved infrastructure boosting their overall growth potential. Our latest survey confirms a 26 per cent investor approval rating for tier-2 and tier- 3 cities, with Bangalore following as the second-most preferred investment option with 21 per cent votes.”
Continuing with his recent survey findings related to real estate investment trend Anuj Puri further added, “Our survey confirms that a conducive reform-driven market environment and government sops have breathed life to Indian real estate. Long-term investors with realistic returns expectations are returning. 58 per cent of our respondents bought property for end-use, and 42 per cent bought for investment — up by 10 per cent against the previous survey."
Elaborating upon the reason for such rise of real estate investors' faith in tier-2 and tier-3 cities Rakesh Yadav, CMD at Antriksh India Group said, "The recent interim budget offered major benefits to property investors, such as increased TDS threshold on rental income from Rs 1.8 lakh to Rs 2.4 lakh and the benefit of rolling capital gains tax from investment in one house over to two new houses. Property investment with a focus on rental income is once again being seen as lucrative." Yadav went on to add that RERA implementation and lower GST rates immensely helped revive consumer faith in new launch properties.