|India - Some Hot Locations|
|Sunday, 04 December 2011 16:25|
India's more established business centres will be familiar to many. India's Business Today publication looks at some of the lesser known cities where big infrastructure and industrial projects ensure huge future growth potential and attractiveness in terms of real estate investment.
Ahmedabad, among India's fastest-growing cities has only recently started realising its real estate potential. It is witnessing a construction boom and an increase in population.
"The city has huge potential due to industrial growth. For example, considerable economic activity is expected because of Tata Motors' small-car project, which is expected to boost real estate prices in and around Sanand," says Anuj Nangpal, director at DTZ India.
Dubbed as the commercial capital of Kerala, Kochi is an important port city. It is also emerging as a hub for information technology and related services.
Tourism and trading in spices are the main drivers of the local economy. The region gets substantial funds from locals working abroad. "Kochi's real estate market has largely been driven by repatriation of funds by non-resident Indians (NRIs). The city's real estate market is expected to see significant growth once under-development facilities such as the Vallarpadam international (shipping) container terminal and technology parks become operational," says Nangpal of DTZ.
The terminal and technology parks will generate jobs and increase the demand for real estate. Prices of houses rose 30 per cent in the year to June 2011, according to the NHB's Residex.
The economy of Tamil Nadu's largest industrial centre after Chennai is largely driven by the textile industry, followed by IT and health care sectors. With demand being driven by the locals, the city has witnessed mediocre growth so far. The growth dynamics are expected to change with operationalisation of various planned infrastructure and commercial projects.
"The region currently has two operational SEZs. Five more are expected to become operational over the next three years. The new SEZs will generate employment and bring migrant population. This is expected to boost real estate growth in the city," says Nangpal.
Kochi-Coimbatore-Thiruvananthapuram is an emerging metropolitan hub, says JLL's Mayank. "The Coimbatore-Tirupur-Erode industrial corridor will contribute to industrial growth of the state. Tirupur, which is 50 km from Coimbatore, contributes nearly 75 per cent to India's textile exports. Coimbatore, known for its industries, has become a preferred destination for the IT sector, thanks to incentives given to IT companies by the Tamil Nadu government," he says.
This Rajasthan town is a training hub for students aspiring for premier technology and medical institutions. It is also an industrial centre with large factories in engineering equipment, fertiliser and chemical sectors. The town is seeing hectic real estate activity, mainly industrial and residential projects.
"Emergence of several medium and big companies in and around Kota is largely behind the boom in commercial and residential property markets. It is a well-established regional urban centre and a focal point of industrial development in the state," says Nangpal.
Coaching centres have played a big role in boosting demand for real estate in the city. Some are wary of investing in Kota as they fear that such a demand is likely to be fragile.
An industrial hub in Haryana, Rewari has manufacturing units in a wide range of sectors-automobile parts, light engineering, chemical, machinery, electronics, pharmaceutical and textile. Proximity to key production and consumption centres of the National Capital Region is a big advantage.
Apart from Rewari, the DMIC project is expected to fuel development in places like Palwal and Hissar in Haryana; Phulera and Bhiwadi in Rajasthan; Dholera and Vadodara in Gujarat; and Nasik in Maharashtra.
"At present, you have the option of investing in agriculture land in areas that will benefit from the DMIC project. The growth prospect is bright as agriculture land can be later converted for residential use," says Gulam.