Bengaluru is at the top position in the list of 14 best real estate destinations in the country for housing segment while the cities in the national capital region are at the bottom, a study has said.
PropEquity, an online subscription based real estate data and analytics platform, said the rankings are based on various parameters like price appreciation, supply, sales, unsold inventories, delays in project completion and size of the market, among others.
"Bengaluru has emerged as the number one destination in most of the parameters evaluated for studying India's top real estate destinations," PropEquity said in a statement.
Pune is at the second place in the list, followed by Chennai, Hyderabad and Ahmedabad.
Mumbai, which ranked first five years ago, has now slipped to the 8th position.
"Surprisingly, Gurgaon has dropped to 10th position as the region is marred by project delays, expensive properties and a demand-supply mismatch," it added.
The report highlighted that all the NCR cities occupy the bottom rankings, depicting the weakness in the region.
Noida, Ghaziabad, Greater Noida and Faridabad are at 11th, 12th, 13th and 14th positions, respectively, in the list.
"The primary reason why NCR has suffered the most is because there has been a flight of investors. Over 50 per cent of the sales in NCR have been investor driven since last 5-7 years," PropEquity CEO and founder Samir Jasuja said.
Huge delay in completion of projects, high property prices and oversupply also contributed in making NCR unattractive as a real estate destination as compared with other cities in southern and western regions, he said, adding that the sales dropped by 53 per cent in NCR during 2014 over the previous year.
PropEquity report also revealed that about 7.6 lakh housing units are unsold in these 14 cities, of which Mumbai Metropolitan Region, NCR and Bengaluru together account for more than two-third.
The prices of the newly launched units continued to rise by 5-16 per cent in last four years despite slowdown in the property market, it added.
However, Jasuja said that the rates have declined by 20-35 per cent in the secondary markets, forcing the developers to offer discounts to buyers in the form of freebies.