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Looking for good property bargains in India?

Bengaluru, Chennai, Hyderabad and Pune offer wonderful investment opportunities and high rental yields, says Mantri Developers Pvt Ltd

While the Mumbai and Delhi real estate markets continue to be sluggish, thanks to high property prices, four major cities of India - Bengaluru, Chennai, Hyderabad and Pune - are faring well.
Sushil Mantri, Chairman and Managing Director, Mantri Developers Pvt Ltd, which has projects in all four cities, says the main reason for the buoyancy in these property markets is the affordability of apartments.
Bengaluru seems to be the brightest spot in the Indian real estate sector. "It has one of the largest office absorption in the world," Mantri points out. "Thanks to companies setting up their office in Bengaluru, at least half a million new jobs are created every year."
This in turn is fuelling demand for apartments and villas. "People from all over India and even NRIs from around the globe keep coming to Bengaluru," says Mantri. "At least 500 families are relocating here every day. This has resulted in Bengaluru rental yields being the highest in the country."
He expects demand for residential properties in Bengaluru to continue growing over the coming years. "We expect Rs5 million to Rs10 million would be the sweet spot for sale of apartments here." Bengaluru is the lowest among all Indian metros and it is possible to get flats for rates ranging between Rs4,000 and Rs5,000 a square feet, within a radius of 15kilometres from the city centre.
Hyderabad is also emerging as a major real estate destination and apartments are available at rates between Rs3,500 and Rs4,000 per square feet, says Mantri. Office space in Hyderabad is among the cheapest in India with rentals being as low as Rs35 to Rs40 per square feet a month. "There is political stability in Hyderabad today, and property prices are at their lowest levels. One can expect good appreciation over the next two to three years."
Chennai and Pune, unlike Bengaluru, have two sectors to depend on - IT and automobiles - which fuel demand. Apartments in these two cities are available for an average of between Rs5,000 and Rs6,000 per square feet, notes Mantri.
According to the leading developer, NRIs from the Gulf, Singapore and US show pretty good interest in the domestic market. "NRIs account for about 20 to 25 per cent of our sales," he points out. Mantri Developers has offices in both Dubai and Singapore. It is now planning to open one in the US. "NRIs don't have much investment opportunities abroad, where interest rates are very low. So they prefer to invest in properties in India," he says.
Snehal Mantri, Director, Marketing and HR, says that NRIs face some problems while investing in properties in India. The main concerns are the non-availability of documents with some builders and delays in possession. "They are unhappy at times with the services, especially with regard to facilities management and security," she says.
Mantri Developers now provides 360-degree services to NRIs, taking care of their properties and investment and even acting as a wealth manager, by advising them to churn their properties. "Naturally, we have a lot of regular NRI customers," she adds.