Propequity, a real estate data, research and analytics firm, has released in a report that Bengaluru has come into view as one of the number one destination in a great portion of parameters assessed on for studying India’s top real estate destinations. Gurgaon has surprisingly sinked to 10th rank as the region is disfigured by project procrastination, exorbitant properties and demand & supply discrepancy. Not simply Bengaluru, the most recent report by PropEquity puts the Southern region of India at the top as three out of the topmost four cities are Bangalore (1), Pune (2), Chennai (3) and Hyderabad (4). These cities have interestingly beaten 50% and beyond of the parameters assessed in the research. Bengaluru has appeared as the best city amongst the 14 cities at peak in India and has certainly positioned number 1 on 4 out of the 10 parameters assessed i.e. size of the market, CAGR of absorption and total unsold inventory to yearly absorption ratio.

Pune has come a nearby second and has been exclusively in charge of helping the western region to pick up the second spot. The NCR area has somehow failed in its attempt to make its mark on any of the parameters assessed and consequently has low regional and city rankings as well. “Noida, Greater Noida, Ghaziabad and Faridabad on the grounds of the assessed parameters do not lie in the top 10 cities of India other than Gurgaon which continues to remain on the list at tenth rank. Southern region on the other hand has relatively performed better across all the parameters and is anticipated to continue moving forward with this trend,” said Mr.Samir Jasuja, CEO and Founder at PropEquity.

The top 10 cities in the list are as follows:-

Additionally, Noida, Ghaziabad, Greater Noida and Faridabad fall at 11th, 12th, 13th and 14th ranking respectively.

10 key parameters that the study has taken into consideration to create ranking includes the price, supply, absorption, inventory, new launch trends, execution delays and the size of the market in value terms.

Mumbai, which 5 years back ranked 1st has now slipped to the 8th rank, while Bengaluru, which did not even figure in the first five cities, has ascended to the topmost rank. Comprehensively, the cities which have dropped the most in terms of rankings are Noida i.e. from 4th to 11th and Mumbai from 1st to 8th, while the city which has mounted the most is Hyderabad i.e. from 10th to 4th. In terms of regions, the southern region, which ranked 3rd out of the four regions in terms of in regional rankings has overhauled the northern region while it has become 1st at the city level.

All the NCR cities cover the bottom rankings portraying weakness in the region.

• The Real estate prices have continued to exist at practical levels and acknowledged moderately.
• It has primarily been an end-user market so did not get adversely affected when the investors started to move out from the market in the past couple of years.
• The developers do not over extend beyond reasonableness as they have launched smaller projects and are well capitalized. Also, the land prices in south are way reasonable than northern & western markets.
• A great number of the real estate projects in the Southern region are advantageously sold post construction or when they are in the verge of being concluded, which further leads to uplift in the home buyers confidence.
• The developers to a great extent are not really resting on cash flows from sales to fund the projects and manage their finances more efficiently.
• The South Indian region has developed as the IT hub of India since past a decade and the ceaseless soar in the demand of IT space during the previous few years has maintained the end-user driven demand in these cities.

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