Analyst Report: The best cities for property investment in 2020?

The real estate sector witnessed a massive transformation during the 10 years beginning in 2010, especially in markets such as Pune, Bengaluru, Hyderabad, Delhi-NCR, etc. Nevertheless, these towns are now close to saturation, due to the lack of adequate land banks and high prices. However, many emerging cities are likely to become popular destinations in the next decade, starting in 2020.

Which are the Best cities for property investment in 2020?

The government’s “Smart City 2.0 Mission” will be launched across the country in 2020, and the future looks promising for the property industry, says Nimish Gupta, FRICS-MD, South Asia, RICS. Infrastructure projects such as “Bharatmala” and “Sagarmala,” and the development of the new airports under the UDAN regime, as well as healthy commercial space absorption, will help drive the residential sector in cities apart from Delhi, Mumbai and Bengaluru, he adds.

“This government initiative on Sagarmala and Bharatmala aim to build strategic economic corridors in India with a view to strengthening infrastructure in terms of logistics, highways and roads. These will benefit towns such as Kochi, Agra, Kota, Nagpur, Pune, Indore, Vizag and other coastal towns. It will also be a platform for bringing North East into the overall development plan because the government of India focuses on building 100 airports,” says Gupta.

How fast are emerging cities going to grow in 2020?

Gupta lists the price anticipated for the next decade in possibly leading real estate destinations which are as follows: 

1) Rajkot is going to see a 10% – 15% increase.

2) Surat and Pune are expected to grow by 15% to 20%.

3) The growth of Shimla, Dehradun and Coimbatore could be 20%. 

4) It is projected that Ahmedabad’s residential market will grow by the end of the decade between 20% and 25%.

5) The residential markets of Bhubaneshwar and Vizag may increase by 25%. 

6) Agra, Vijayawada, Patna, Raipur, Mysore, Nashik, Greater Noida and Kochi will grow by 25%-30%.

7) At the end of the decade, Nagpur is expected to grow by 30%-35%.

The city which falls within the Smart Cities program, despite the fact that comprehensive urban development is still pending, have already seen the growth of property prices in recent years.