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India’s Real Estate Viewed by Experts, 2019
AREA Press Release No. 567/2019: November 05, 2019

Dr.Sopon Pornchokchai, Ph.D. Dip.FIABCI, MRICS
President, Agency for Real Estate Affairs (AREA)

The following is the survey of valuers in India which could be beneficial to understand the latest situation of real estate markets in India.

During October 10 to 13, 2019, Dr.Sopon Pornchokchai, President, Thai Appraisal and Estate Agents Foundation was invited by the The Indian Institution of Valuers to speak at the Global Valuation Summit in New Delhi.  Dr.Sopon conducted a survey of valuers who came from cities nationwide.  There were some 800 participants; however, some 150 were interviewed.

Assessment of India Economy and Real Estate Markets    
Item 2019 2020
India Economy 6.3 6.9
India Real Estate 5.9 6.5
Score: 10 = best, 1 = worst.    
Agency for Real Estate Affairs, October 2019    

 

Market Situation

For the respondents, India economy in 2019 was viewed at the score of 6.3 out of 10.  This implies that  the performance of the economy was above average.  In 2020, the economy should be getting better.  Therefore, it was viewed at 6.9.

In the case of real estate markets as a whole, it was viewed at 5.9 out of 10.  It implies that the situation was above aveerage.  It was slightly lower than the situation of the economy at large.  In 2020, India real estate markets  would be getting better at 6.5.

Best Sectors of Investment, 2019  
Best Sectors of Indian Real Estate, 2019  
Housing 31%
Commercial Properties 28%
Industrial Properties 12%
Land developments 4%
Condominiums 4%
Affordable Housing 3%
Hotel 3%
Logistics 3%
Agricultural Plots 2%
Rental Properties 2%
Infrastructure 1%
Leasehold Properties 1%
Office Buildings 1%
Senior Living 1%
Warehouse 1%
Agency for Real Estate Affairs, October 2019  

 

Best Sectors for Investment

Housing was the major sector for investment where it was recognized by some 31% of the opinion.  It could be observed that during this period in India.  Investors still held housing for investment.  The second in the priority was commercial developments with 28%.  The third in the priority was industrial properties (12%)

Other interesting sectors include land developments (4%), condominiums (4%), affordable housing (3%), hotel (3%), logistics (3%), agricultural plots (2%), rental properties (2%) and the like.

 

Major Developers in India

According to this survey, DLF Ltd. was the most acceptable developers in India with the score of 15% followed by Sobha, 10% and Prestige 9%.  There are many other salient developers such as Tata Developer, Ansal API, Raheja, Godrej Properties, Haranandani Group, Lodha Group and the like.

Major Developers in India  
DLF Ltd. 15%
Sobha 10%
Prestige 9%
Tata Developer 7%
Ansal API 6%
Raheja 6%
Godrej Properties 5%
Hiranandani Group 5%
Lodha Group 5%
L & T 3%
Apsara Builders 2%
Arihant 2%
Unitech 2%
Aditya Birla Group 1%
Ashapurne 1%
Brigade 1%
Sahara 1%
Shapoorji Pallonji 1%
UB 1%
Others 17%
Agency for Real Estate Affairs, October 2019  

 

Most Attractive Cities for Investment       

The survey results appeared in the following table:

Most Attractive Cities for Investment  
Mumbai 22%
Bangalore 21%
Delhi 14%
Hyderabud 8%
Pune 7%
Chennai 4%
Gurgaon 3%
Ahmedabad 3%
Nagpur 3%
Jaipur 3%
Noida 3%
Surat 2%
Chandigarh 1%
Amaravati 1%
Coimbatore 1%
Indore 1%
Others 6%
Agency for Real Estate Affairs, October 2019  

Mumbai was the first in the priority at 22% of the opinion of Indian valuers at the Summit followed by Bangalore 21%, New Delhi 14%.  Other cities included Hyderabud (8%), Pune (7%), Chennai (4%), Gurgaon (3%), Ahmedabad (3%), Nagpur (3%), Jaipur (3%), Noida (3%) and the like.

Countries of Preference to Buy  
USA 20%
UK 12%
Singapore 9%
UAE 8%
Australia 7%
Canada 7%
Thailand 6%
Switzerland 6%
France 3%
Mauritius 3%
New Zealand 3%
Indonesia 2%
Germany 2%
Japan 2%
Others 10%
Agency for Real Estate Affairs, October 2019  

 

Countries of Preference to Buy     

Actually, Indian investors had a variety of choices for buying property abroad.  However, the largest proportion of them preferred to buy properties in the United States of American as the first in the priority (20%) followed by UK (12%) and Singapore (9%).  Then there were UAE (8%), Australia (7%), Canada (7%) and Thailand (6%).

However, there were  still a lot of other countries which were of interest for Indian investors. These countries were Switzerland (6%), France (3%), Mauritius (3%), New Zealand (3%), Indonesia (2%), Germany (2%), Japan (2%) and the like.

In sum, Indian real estate markets was not as active as the performance of the economy.  However, it could be growing in the near future.  Mumbai, Bangalore and New Delhi are growing saliently.  If cities around New Delhi was included, its share could be somewhat larger.  As appeared in many countries, USA was a major destination for investment abroad.