There is a real estate boom in India. And, it is almost like a gold rush. That is, even a bit of information that an airport or railway station or special economic zone is being planned in an area is enough to have both builders and investors rush. Business Standard spoke to several leading property consultants and identified seven areas seeing enormous development. Some are good places to invest, too. These areas are not in any metro but could have proximity to one. The consensus candidates are:
Dwarakanagar (Visakhapatnam, Andhra Pradesh)
An upcoming residential area, Dwarakanagar is 15 km from Visakhapatnam and has seen an influx of non-resident Indians (NRIs), on the back of many software and business processing outsourcing (BPO) companies setting up offices in and around the city, which has a biotech special economic zone (SEZ) and steel and power plants in the south. The Dwarakanagar belt has multiplexes and schools, and has become a commercial hub, with shopping centres in a two-three km radius. “The major growth corridor is towards the north, along NH-5 towards Vijayanagarm,” says Ashutosh Limaye, head of research and real estate intelligence services, Jones Lang LaSalle. The state government has started an IT SEZ in the Rushikonda hills. A 1,000-sq ft flat in Dwarakanagar will cost Rs 38 lakh, against Rs 36 lakh last year. Ramesh P, a realty broker, says that a 1BHK flat in Dwarakanagar can earn Rs 8,000 in rent, as against Rs 7,200 last year. While he concedes that the growth in rentals has not been great, he is quick to add that the area has a lot of potential because of all the development work taking place.
Gorwa (Vadodara, Gujarat)
Gorwa has a mix of residential and commercial properties, along with a number of restaurants, colleges and hospitals. The city lies on the the famous Bhailal Amin Road in Vadodara, which connects several towns in the district. By 2015, Chief Minister Narendra Modi plans to build a foreign trade centre near Vadodara, the state’s largest theme park in Ajwa Garden, a township in Padra village, and make Gotri a satellite City.
Since Gorwa is five-10 km from these places, property rates in and around Gorwa are appreciating by eight-12 per cent every year. Hence, it makes sense to buy a residential property now, and hold it for three or four years. By this time, property prices are expected to appreciate on the back of positive sentiments.
Vadodara, Vishvamitri and Goya Gate railway stations are within a 7 km radius. The area attracts a lot of attention because of a centrally-located lake. Other developed residential areas around Gorwa are Gotri, Nizampura, Vishvamitri, Alkapuri, Old Padra Road, Vasna and Karelibaug.
The average cost of a residential space in Gorwa has increased to Rs 4,000 a sq ft from Rs 3,200 last year. However, the rents earned on commercial properties have dropped or remained constant in some areas. A 350-sq ft shop in Gorwa can fetch rent of Rs 25,000 against Rs 30,000 last year.
Also Read
The Vadodara-Surat national highway is expected to be completed by the year-end.
Vaishali Nagar (Jaipur, Rajasthan)
Vaishali Nagar, nine km from Jaipur, has become a satellite city. Ghat ki Guni, a tunnel project, is one reason why property prices on Agra Road are rising. If the government approves an increase in the reserve price, land prices in the city will shoot up by 15 to 20 per cent, say real estate experts. Vaishali Nagar is among the plush areas that have established residential spaces. This affluent neighbourhood in the southwestern part of Jaipur stretches from Queens Road to the Delhi Bypass (east to west) and Ajmer Road to Sirsi Road (south to north). According to the National Housing Bank, Jaipur was one of the three cities whose housing prices dipped by 2.6 per cent in the April-June quarter. However, plush residential areas such as Vaishali Nagar, Tonk Road, Ajmer Road and Jagatpura showed up to 10 per cent increase in prices. A Jaipur-based realty broker says his client purchased a commercial plot on Vaishali Road for Rs 12,000 a sq yd 10 months ago. “Today, the price for the same plot has gone up to Rs 12,700 a sq yd.” (1 square yard = nine sq ft). Limaye of Jones Lang LaSalle India says Jaipur and Jodhpur are good property investment destinations, as they are part of the golden triangle on the tourism circuit.
MIHAN (Nagpur, Maharashtra)
Thanks to the Multi-modal International Cargo Hub and Airport (MIHAN), a special economic zone, Nagpur has been identified as a promising city for the IT and BPO. Recently, Mahindra Satyam commenced construction work on its IT development centre at MIHAN.
First City is the first residential township of MIHAN, selling at Rs 3,500 a sq ft now from Rs 2,600 a sq ft a year ago. According to property consultants, developers will cash in on this opportunity soon, with a sizeable working population shifting to MIHAN and given the fact that this is the only township available in the area.
One can also consider buying residential properties at Hingna and Wardha Road, within five km of MIHAN. Today, a 2BHK (two bedrooms, one hall, one kitchen) flat in Hingna commands a rent of Rs 6,200 a month. By next year, it is expected to go up to Rs 8,000. A 2,000 sq ft bungalow in H B Town near MIHAN can set you back by Rs 1.2 crore, as against Rs 1.1 crore a year ago.
Vytilla (Kochi, Kerala)
Vytilla is a part of Kochi that has witnessed a spurt of residential and commercial projects. It is one of the largest and busiest intersections in Kerala. This node intersects the main north-south artery of the state with NH-47 through three city roads.
According to Joseph Mathew, an independent property consultant, property prices have risen by 30 per cent in the vicinity. The proposed Kochi Metro will pass through this area. He said prices are expected to rise 40-50 per cent once the metro becomes operational.
There is an increasing demand for properties near Kochi metro stations in anticipation of a spurt in property prices once the project is completed in 2016. Values of apartments at Kaloor, Edapally and Aluva (expected metro stations) vary from Rs 2,500 to Rs 5,000 per sq ft and are expected to rise by 15 per cent every year.
Kishor J bought a 3BHK apartment in 2007 near Vytilla for Rs 41 lakh. When he purchased the property, the building was under construction. “Today the cost of the same apartment has appreciated to Rs 65 lakh,” he says. That’s a neat 60 per cent return in five years, a good bet for those looking at property solely for investment purpose.
Peelamedu (Coimbatore, Tamil Nadu)
Coimbatore is the largest industrial centre in Tamil Nadu after Chennai, and has transformed into a preferred destination for IT/ITeS, as a result of lucrative incentives given to IT companies by the Tamil Nadu government. Peelamedu is a suburb in Coimbatore. It lies on Avinashi Road, said to be the busiest road of Coimbatore. The area stretches from Nava India to the international airport. Two years earlier, Suresh K bought a 2BHK in Peelamedu at Rs 2,500 a sq ft. He says property prices have shot up to Rs 4,200 a sq ft today. The prices are expected to increase further.
Realty players say Peelamedu is developing in a big way as it is home to many major textile and wetgrinder companies, schools, colleges, hotels and residential complexes. It is the educational hub of Coimbatore, with renowned medical, paramedical, engineering, arts & science colleges there. Peelamedu is seven km and 11 km from Coimbatore and the airport, respectively. The area is said to have good infrastructure, quality of life and low cost of living to offer.
The rapid pace of infrastructure development and a proactive government are aggressively promoting the city. R S Puram, Avinashi Road and Race Course are plush areas. However, a property consultant says, if you go six to eight km from these areas, one can find good flats, starting at Rs 50 lakh.
Zirakpur (Chandigarh)
Zirakpur is situated on the outskirts of Chandigarh, on the Chandigarh-Ambala highway. It is an established and plush residential area, with good connectivity. If you wish to buy a house in Zirakpur, you will have to spend Rs 12,000-13,000 a sq ft, up from Rs 10,000-10,500 a year ago.
With the completion of Aerocity Road, Zirakpur will become equidistant from Chandigarh, Mohali and Panchkula. Zirakpur is well connected with these and other neighbouring areas through air-conditioned and non-air-conditioned local buses. In the second phase of the Chandigarh Metro, Zirakpur will be connected with other parts of the region.
Chandigarh airport is just eight km from Zirakpur, while Chandigarh city lies within five km. Sector 51 and Sector 52 are the upcoming residential areas in Chandigarh.
The Rajiv Gandhi Chandigarh Technology Park, spread over 400 acres, has put Chandigarh on India’s IT/ITeS map. Major Indian and multinational corporations such as Quark, Infosys, Dell, IBM and Tech Mahindra have set up offices in the city and its suburbs.