Property in South India
Southern India is a linguistic-cultural region of the country and comprises of, four states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. The real estate sector in this part of the country is booming and cities like Hyderabad, Bangalore, Kochi have some of the best realty properties in terms of prices. The growth in this sector can be attributed to favorable demographics, rising disposable incomes, terms and conditions of banks and housing finance companies that further encourage the customer.
The region has the following states and cities:
Real estate investment in South India Real estate sector in the southern India is on an all time high. It is expected that the industry will grow at a rate of 30% in the next few years. The various cities in this region like Bangalore, Chennai, Kochi, Vizag, Hyderabad are witnessing high growth in this sector. These cities have also attracted large sums of investments from NRIs, in residential and commercial projects. Large housing companies have also entered into partnerships and joint ventures with Indian realty developers
The southern states in India have attracted large investments from large players in countries like Singapore, Malaysia, Dubai and others. Singapore based Ascendas entered into a joint venture with Tata group for setting up an IT park in Bangalore and is one of the success stories in this sector.
The company is now investing in various IT parks in cities like Hyderabad and Chennai. It is estimated that in the coming years India will become the 4th largest IT market in the Asia Pacific, with cities in South India, making a significant contribution.
The last 5 years have seen considerable FDI flowing into these cities and it is said that realty sector in the entire region has also flourished due to the investments by NRIs.
Residential real estate Cities is different states of southern India are also seeing a phenomenal rise in residential property prices owing to an increase in demand. This increased demand can be attributed to the rising working population . With higher incomes and loan facilities provided by various banks, it has become easier to buy a house. Another reason that has contributed to the rise in prices is the high demand by NRIs. Ultra modern residential projects like condominiums, apartments and villas are coming up in different cities. Since these properties offer a high rate of return, it has now become an ideal investment option for NRIs with surplus money.
Commercial real estate With changing lifestyles, rising incomes, and boom in the retail industry, these cities are seeing a fast rise in the number of showrooms, malls, multiplexes etc. This has lead to a rise in the demand of commercial space and consequently a high rise in prices. Specialty malls like wedding malls, gold souks are also being constructed in different parts of the region.
Industrial real estate Cities like Hyderabad, Bangalore, Chennai are the largest software and ITES exporters to the rest of the world. Bangalore is known as the silicone valley of India and a large number of large companies and MNCs have set up their offices in these cities. Government is also providing support to these companies by setting up Special economic zones, improving the current infrastructure. All these factors contribute to increased prices of industrial properties.