IT-Centric Cities Emerging As Top Realty Propositions

Bangalore: The higher volumes of supply and the rate of absorption in real estate segment are better in cities with good level of job opportunities. Previously, cities like Mumbai and Delhi used to witness maximum number of job seeking individuals who in turn drive the demand for housing. But, in today’s date cities like Pune, Bangalore, Chennai, Hyderabad and Gurgaon have emerged in the leading positions outshining Mumbai and Delhi, according to Om Ahuja, CEO - Residential Services, Jones Lang LaSalle India, reports Neha Pandey Deoras of Business Standard.

Cities with maximum number of IT companies are emerging as top real estate propositions in the country and such cities are Pune, Chennai, Hyderabad and Bangalore. In such cities IT/ITeS companies are expanding their base which in turn is driving the demand for housing segment. For instance, Wipro is planning to set up their headquarters in Bangalore that will spread over around 2.5 million square feet.  

"With inflation and construction costs moving northwards, the price trends are changing dramatically.
The graph clearly indicates that supply trends in real estate are in a state of flux. The supply of products priced below Rs 3,000 per square feet is reducing markedly. From 43 percent in Q4 of 2009, supply in this segment will come down to 8 percent in Q4 2013. Meanwhile, supply in the price range of 5,000-10,000 per square feet is expanding," added Ahuja, reports Business Standard.

However, developers are coming up with projects from ultra-luxury to luxury to affordable segment. Property investors are keen to invest in properties that are priced below 4000 a square feet in key cities. With the current market situation where property prices are becoming unaffordable, home buyers still can invest in good projects under the aforementioned price bracket in places like Gurgaon, Pune, Chennai, Bangalore and Hyderabad, added Ahuja.

When planning to invest in property, potential home buyers should bear in mind the rate of inflation and the value for money with the time.