After a brief lull during the first two years of this decade, prospects for the realty sector seem to be promising once again. India’s top eight cities alone witnessed land deals of over 1,700 acres in the first nine months of last year. Real estate – both residential and commercial – is witnessing a boom, especially in South India. While residential property and plots in chennai market witnessed an exponential growth of 21% in the first half of last year, cities like Bengaluru and Hyderabad have also recorded a steady hike in realty prices. In fact, according to a recent survey, Bangalore is projected to be the fastest-growing city in Asia over 2020-24. Hyderabad secured the third position in the list. Other major South cities are no different.  Multiple factors have led to these southern cities being featured on the global real estate map. Let’s take a look:

Sterling Infrastructure 

Most South Indian cities feature robust infrastructure in terms of transport and connectivity. Additionally, more residential plots for sale in Chennai, are being developed. Let’s take Chennai’s example. Metro connectivity has eased the city’s traffic congestion to a great extent while increasing connectivity and reducing travel time. While Metro has already connected many suburbs to the heart of the city, more will be added to the list once Phase II is completed by 2025. Several multi-crore road projects have also been announced. These include a link road connecting the Tambaram-Shanmugam Road with the Chennai-Tiruchi National Highway and an elevated corridor on the Mount Poonamalle-Avadi Road that’s 3.14 km long.  

The scenario in Bengaluru, the third largest city in India, is no different. Two Metro Rail Phases are expected to be completed in the city by 2025 – 2A and 2B. While the former caters to the Outer Ring Road area, the latter connects KR Puram to Kempegowda International Airport. The government has also flagged off multiple projects to decongest and develop the city’s roads, attracting home buyers and investors alike.  The 204 km-long Satellite Town Ring Road (STRR) is among the major projects. Once completed, this road is expected to benefit the logistics and manufacturing sectors.  The 116 km-long Peripheral Ring Road (PRR) is another major infrastructure project.   

Another major Southern city, Coimbatore, is also experiencing significant growth in infrastructure. With the availability of land for sale in Coimbatore, new developments are underway to enhance the city’s overall connectivity and livability.

Work is all set to start to widen the Coimbatore – Karur road into a four-lane road. Work on the Western Ring Road, which is expected to reduce traffic congestion in the city, has also been initiated. You’ll also find this development story echoing elsewhere – be it Hyderabad or Kochi. 

The IT Factor

Along with infrastructure, information technology has played a pivotal part in South India’s realty boom. Cities like Bengaluru, Chennai and Hyderabad are home to many IT corporations from India and abroad. It’s not for nothing that Bengaluru is known as the Silicon Valley of India. As per figures quoted last year, the Southern metropolis employed 1.5 million people in the IT sector. 

While the city is India’s largest IT exporter, Hyderabad and Chennai bag the second and third positions, respectively. Google, Microsoft, IBM, TCS, Amazon, Wipro, Infosys, KPMG, HP, Dell, Capgemini, Goldman Sachs, Deloitte; the list of IT bigwigs in these three cities is seemingly endless. With a growing IT sector generating more jobs, there’s bound to be an increased demand for plots for sale in Bangalore, whether residential or for office space. 

Reasonably-Priced Land & Property

Land and property are available, at relatively reasonable rates, in South cities as compared to their North Indian counterparts. Let’s compare: The average property price (per sq. ft) was Rs 5,570 last year, while the figures in Mumbai had touched Rs 11,875. The figures for Hyderabad and Chennai stand at Rs 4,620 and Rs 5,315, respectively. While the latter figures of the South cities are almost at par with those in the National Capital Region and cities like Kolkata, its exemplary infrastructure tilts the balance in favour of the South. The availability of land at relatively lesser rates is yet another reason why an increasing number of people are choosing South India for real-estate investment, especially plots in Bangalore and plots in Chennai.

Rise Of The Retail Industry

It’s raining malls and supermarkets in the South of India. With the IT boom and industrial belts triggering the influx of a large number of young professionals, the retail industry is thriving down South. Many premium national and international brands have already marked their presence across Southern cities. This has, in turn, pushed the realty sector ahead – a buzzing retail sector translates into more jobs, money, and demand for an improved lifestyle.  

Stellar Social Infrastructure

The South of India has always led the rest of India regarding social infrastructure like education and healthcare. Be it literacy rate or most health parameters like Infant Mortality Rate, Southern states rank higher than their North Indian counterparts. Studies also show that the number of colleges per 10 lakh students is higher in the South. This points towards a robust public and private healthcare system and an excellent network of schools and colleges. Cities like Chennai, Bengaluru and Hyderabad have many reputed hospitals and educational institutes. This has also resulted in better economic opportunities, which in turn plays a key role in pushing the realty industry ahead.  

Notable NRI Investments

The presence of good infrastructure and social infrastructure also plays a role in making the South of India a preferred destination among the NRIs. The projected NRI investment in Indian real estate was $13.1 billion for the year 2021. A maximum number of people showed interest in Karnataka, followed by Tamil Nadu, Kerala, Telangana and Andhra Pradesh. 

Emergence Of New Asset Classes 

While apartments have always been the leading asset class, others too are making their presence felt now. Here are a few examples: As per surveys, Hyderabad, Chennai, and Bengaluru have witnessed an impressive Compound Annual Growth Rate (CAGR) in the plotted development category during 2018-2021 – 21%, 18% and 13%, respectively.  The share of premium segment apartments (priced above Rs 1.5 crore) has increased from 18% to 22% from Q1 in 2022 to Q1 in 2023. Hyderabad is a case in point. The city witnessed the maximum sale of new homes in South India in 2022, and more than 50% of these were 3 BHKs, with 44% priced over Rs 1 crore. An increasing demand is also been seen in the co-living category. As per a survey, while there were only 

2,10,000 beds in this segment at the end of 2021, the number is going to be more than double – 4,50,000 beds – by the end of 2024. The demand for co-working spaces is also rising steadily. In fact, their demand has doubled over the past four years. In the first quarter of this year, co-working spaces across India’s top 7 cities enjoyed 27% share of the net absorption of 8.2 million sq. ft. This figure was 14% in the first quarter of 2019.

South Shows The Way

When it comes to real estate choices, South Indian cities will leave you spoilt for choice. As the figures above show, there has been a significant rise in the number of plotted developments. An increasing number of upwardly mobile Indians are now choosing plotted developments because it gives them the freedom to build their home exactly the way they want it. And when it is about plotted developments, Purva Land offers you some excellent options – villa plots in Chennai, Bengaluru and Coimbatore. Exclusivity, sustainability, quality and trustworthiness – our brand is synonymous with it all. So, if you plan to invest in real estate, ‘going south’ would be an excellent idea!

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