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In the ever-evolving world of real estate, the year 2024 is poised to be a game-changer. With significant infrastructure projects on the horizon, the dynamics of homebuying and investing are set to undergo a transformation. New metro lines, expressways, and airports, both operational and upcoming, are expected to play a pivotal role in shaping the performance of real estate markets, both residential and commercial. In this article, we will delve into the four prime locations where you should consider investing your money in 2024.
Infrastructure: The Catalyst for Growth
The impending infrastructure facelift is anticipated to act as a catalyst for residential activity in the influence zones. Areas along project corridors are poised to witness substantial capital value appreciation, attracting both investors and end-users.
“As infrastructure projects reach completion in 2024, peripheral areas will become integrated with central and suburban areas, resulting in the homogenization of activity across key residential pockets of respective cities,” says Badal Yagnik, CEO of Colliers India.
This surge in infrastructure development is not confined to Tier I cities alone; real estate developers are increasingly eyeing new geographies with untapped potential, offering comprehensive offerings in gated communities. Markets like Vadodara, Nashik, Lucknow, Jaipur, Chandigarh, Coimbatore, Mysore, Kochi, Indore, Bhubaneshwar, and Guwahati are primed to embark on the next growth phase.
“Investors will increasingly look for residential investments in these cities, which have higher upside potential compared to Tier I cities. Developers are likely to infuse quality supply in such emerging markets and peripheral locations of metro cities as well,” adds Yagnik.
Now, let’s delve deeper into the four locations that are on the radar of both homebuyers and investors in 2024.
1. Gurgaon – Dwarka Expressway
In Gurgaon, the spotlight is firmly on the Dwarka Expressway. This ambitious metro project, approved in 2023 by the Union Cabinet, is set to connect new and old Gurugram, with an extension to the Dwarka Expressway near Sectors 101-104, Sector 92, Sector 88, Sector 99, 88B, 37D, 36A, 36B. The area boasts several premium and mid-segment housing complexes with property rates ranging from ₹8000 to ₹20,000 per square foot, depending on the project and location. Rentals start at ₹20,000 per month.
According to a report by Savills India, the average capital values of both completed and under-construction properties in Gurgaon have seen substantial year-on-year growth, ranging from 12% to 45%. New Gurugram and Dwarka Expressway lead the pack with annual growth rates of 45% and 21%, respectively, in average capital values of under-construction properties.
2. Noida – The Emerging Hub
In Noida, Sector 150, Greater Noida West, and residential sectors along the Yamuna Expressway are gaining prominence, thanks to their proximity to the upcoming Noida International Airport. Greater Noida West, also known as Noida Extension, offers 2BHK units priced between ₹60 lakh to ₹80 lakh and 3BHK units for over a crore. Rentals for two-bedroom housing units range from ₹15,000 to ₹20,000 per month. The area is also witnessing the development of serviced apartment projects.
3. Mumbai – Metro Magic
Mumbai has always been a hotspot for real estate investment opportunities. With the commencement of the Navi Mumbai Metro, areas like Taloja, Pendhar, Kharghar, and Belapur are garnering attention. Taloja, in particular, is witnessing an average price of ₹6000 to ₹8000 per square foot, expected to rise due to the metro connector. Rentals in the area start at ₹10,000 per month.
Another hotspot to keep an eye on is Ulwe, where the Mumbai Trans Harbour Link (MTHL) passes through. Capital rates in Ulwe have surged, with two-bedroom apartments now commanding prices of more than ₹1 crore. Rentals range from ₹10,000 to ₹20,000, depending on the location. The upcoming Navi Mumbai International Airport is also expected to further impact property prices in the Navi Mumbai area.
4. Bengaluru – The Purple Line Advantage
In Bengaluru, the fully operational Purple Line, connecting Kengeri in West Bengaluru to Whitefield, is creating investment buzz. Areas like Indiranagar, Koramangala, Whitefield, and MG Road have witnessed a significant 20-30 percent increase in property prices over the last few months. The outskirts of KR Pura and Whitefield are also experiencing traction following the metro’s operation.
While the average rents at the city level have grown by 5.8% year-on-year, South and North Bengaluru have seen the highest rental growth of 6-7% year-on-year in premium residential developments.
Conclusion
As we step into 2024, the real estate landscape is set to undergo a transformation driven by massive infrastructure projects. Gurgaon, Noida, Mumbai, and Bengaluru are emerging as top choices for investors and homebuyers, each with its unique selling points. To make the most of these opportunities, stay informed, consult with experts, and keep a close watch on the evolving real estate market.
