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Jul 11, 2013, 05.38 PM IST | Source: CNBC-TV18

Find out: 8 cities that give maximum returns on real estate

Real estate reckoner Prime Property showcases Jones Lang LaSalle's report of eight best cities in India which gives maximum returns on investment.

Recently, global real estate consulting firm Jones Lang LaSalle came up with a report which elaborated on eight locations in India that gave maximum returns on investment. Good connectivity to the city centres, big shopping malls, and an influx of residential project pipeline were the parameters to come up with the investment hotspots.

Here are the most preferred destinations chosen by the agency which were featured on CNBC-TV18’s weekly real estate show- Prime Property.

Noida and Greater Noida were the most preferred locations followed by Thane and Navi Mumbai. Whitefield area in Bangalore gave the fourth highest returns while the southern suburbs in Chennai were ranked at number five. Viman Nagar and Nagar Road in Pune was ranked sixth; followed by Gachibowli in Hyderabad and Rajarhat in Kolkata.

Also read: Mumbai's commercial space to cross 100 mn sqft in 2014

While Noida and Greater Noida have been touted as top investment hubs, it is Thane and Navi Mumbai that gave investors maximum returns in the past four years. Since the first half of 2009, prices in Navi Mumbai have increased by an estimated 85 percent. Prices in Thane saw a surge of 84 percent. This is followed by Whitefield in Bangalore and Viman Nagar and Nagar Road in Pune.

Chennai suburbs recorded an appreciation of 53 percent. Rajarhat in Kolkata had an increase of 46 percent while Gachibowli area saw prices rise by 43 percent.

Surprisingly, Noida and Greater Noida, the report's top picks, recorded the least price escalation in the timeframe.

While launches are currently tepid in the Noida and the Greater Noida markets, an estimated 78,000 units are forecasted by the end of this year. All the other micro markets put together is expected to ring in 67,000 units of supply.

According to experts however, the Noida and Greater Noida markets are also going through a change in occupancy profile.

Shveta Jain, executive director, Residential Services, Cushman & Wakefield India said, "The overall speculation in National Capital Region (NCR) which has been driving the activity will slow down; it has already slowed down. So, the markets will become healthier as there will be more end-user activity which continues to be strong. Developers will be more cautious on new launches. The velocity will be slower and that is where developers need to reconcile. Any other city in India, typically on the velocity of sales, is spread over two to three years. In NCR an absorption period is spread over six months. That realignment will be seen in the market."

"If the objective is to be retaining asset for anytime between five to seven years, then there is no reason to wait. It again depends if somebody is looking to flip the asset in six months to a year's timeframe. Then one should not go ahead with the purchase", she added.

Each of these peripheral suburban areas have been promised a new skyline by both real estate developers and respective state governments. However, their projected price appreciation will largely depend on two factors.

i. Whether developers can keep to their timelines

ii. If the infrastructural development can keep pace with housing development. These according to market analysts are the key risks that consumers must consider before parking funds.

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Property rates
  • Residential
  • commercial
Mumbai
Capital Values Rate/Sq ft (INR)
Aajiwali
3000 - 5000
Ambernath
3000 - 5000
Badlapur
1000 - 3000
Bhandup (West)
11000 - 13000
Chembur (East)
15000 - 17000
Chembur (West)
11000 - 14000
Dombivali (East)
4000 - 6000
Ghatkopar
13000 - 15000
Heeranandani Gardens Estate - Powai
25000 - 30000
Hiranandani Gardens Estate - Powai
25000 - 30000
Kalyan (East)
2000 - 4000
Kalyan( West)
3000 - 5000
Karjat
1000 - 3000
Khandala
8000 - 10000
Kharegaon
5000 - 7000
King Circle
17000 - 28000
LBS Marg
12000 - 15000
Lonavala
3000 - 5000
Mulund (East)
11000 - 14000
Mulund (West)
11000 - 14000
Mumbai Nasik Highway
3000 - 6000
Powai
15000 - 17000
Senapati Bhagath Singh Road
3000 - 5000
Sion (East)
18000 - 21000
Sion (West)
17000 - 22000
Tilak Nagar
12000 - 22000
Ulhasnagar
3000 - 5000
Vikhroli
11000 - 14000
4 Bunglows
17000 - 28000
7 Bunglows
13000 - 23000
Chandivali
10000 - 15000
Malad (East)
12000 - 14000
Versova
21000 - 24000
Airoli
4000 - 8000
Belapur
6000 - 9000
Ghansoli
6000 - 8000
Kalamboli
4000 - 9000
Kamothe
4000 - 6000
Nerul
7000 - 10000
Palm Beach Road
12000 - 15000
Panvel
3000 - 6000
Sanpada
8000 - 10000
Sea Woods
8000 - 10000
Ulwe
3000 - 6000
Uran
3000 - 6000
Vashi
9000 - 12000
Altamount Road
62000 - 72000
Breach Candy
62000 - 74000
Chowpathy
48000 - 58000
Colaba
42000 - 46000
Cuffe Parade
67000 - 69000
Dadar(East)
32000 - 34000
Dadar(West)
29000 - 32000
Lower Parel
32000 - 34000
Mahalaxmi
38000 - 40000
Malabar Hills
68000 - 75000
Mumbai Central
23000 - 34000
Napean Sea Road
66000 - 74000
Parel
26000 - 34000
Prabhadevi
37000 - 39000
Tardeo
41000 - 49000
Worli
36000 - 41000
Andheri (West)
18000 - 20000
Andheri(East)
15000 - 17000
Bevarly Park
5000 - 7000
Bhayander (East)
5000 - 6000
Bhayander (West)
3000 - 5000
Boisar
1000 - 3000
Borivali (East)
11000 - 13000
Borivali (West)
10000 - 14000
Dahisar
4000 - 8000
Goregaon (East)
13000 - 17000
Goregaon (West)
12000 - 14000
Kandivali (East)
12000 - 14000
Kandiwali (West)
11000 - 12000
Malad(West)
9000 - 14000
Mira Road
5000 - 7000
Naigaon
1000 - 4000
Nala Sopara (Eastt)
3000 - 5000
Nalasopara (West)
3000 - 5000
Poonam Nagar
6000 - 8000
Shanti Nagar
7000 - 9000
Shrishti
6000 - 9000
Vasai Road
1200 - 4000
Virar
1000 - 3000
Note: Price trend are based on asking rate and not necessarily on the transaction date
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