A growing number of unsold inventory may paint a sordid picture of capital appreciation in India’s real estate. However, not all is red for long-term investors looking to buy property in India. With the government easing the foreign direct investment norms and planning to develop 100 smart cities, investors have a long road of opportunities ahead.
This newly announced capital of Seemandhra will be one of its kind city, once developed. The city is already a real estate investors’ dream, as in some locations near Guntur land prices have appreciated by around 200 per cent. Much of the construction, development and growth will happen now, as an Assembly building and many more governmental structures are going to be built. At present, the investment opportunity is limited to land buyers and yet to trickle to residential real estate investors. Those announcements are expected later this year.
The value of homes has gone up by 2.9 per cent when compared to Q2’FY15, according to Realty Decoder Q2’FY16, a report by PropTiger Datalabs. However, that is not the only factor for investors to put their money in the city. The city will soon see new business districts that the state government is planning in the vicinity, proposal of Delhi-Mumbai Industrial Corridor (DMIC), and the emergence of new residential hubs. The growth is expected to be constant given the new-age constructions in pipeline.
The city has been witnessing expansive growth of real estate and prices. A number of new areas are coming up driven by the development of areas including BT Road, Chandarpur, Baraipur. This has given rise to residential options in South and North of the city, indicating that it is growing from all sides. The need for quality homes have long existed in the city and has been one of the unmet needs. The growth in real estate development is only catering to this need, ensuring that the property prices will only grow.
Bhiwadi & Dharuhera
Bhiwadi in Rajasthan and Dharuhera in Haryana are the latest and the hottest investment destinations. Their proximity to Gurgaon and Delhi, in addition to industrial developments in these areas, make them the best bets. Bhiwadi, one of the largest industrial hubs in the country, is being touted as the emerging outer investment zone in North. In terms of residential property, this area has a large inventory of homes available in the affordable category. A 2BHK apartment in Bhiwadi is available at a starting price of Rs 20 lakh. Since, the base price here is lower, the returns on investment is likely to be higher. Similarly, Dharuhera is also witnessing industrial growth and has a large number of residential developments. However, return on investment in Dharuhera is around five years, as compared to three years in Bhiwadi.
The realty boom in Bhopal is constant and the city is already delivering returns to many investors. The property prices in Bhopal have been growing at around 20 per cent year-on year. Many new areas are coming up with high-rises providing ample inventory for investors to invest in. Around 50 new projects are under construction in the city. The demand here comes from increased industrial growth which in turn creates jobs and gives spending capability to people.
Source: Proptiger; Image : Google