High-speed train to ply between Ahmedabad, Sanand in next six months: Ashwini Vaishnaw

Source: The Hindu

News High speed train to ply between Ahmedabad Sanand in next six months

A report published by Colliers’ Advisory Services has highlighted the significant benefits of investing in land and generating rental income compared to purchasing ready-made apartments. According to the report, this strategy can yield up to 10 times higher returns.

Titled "Top Investment Corridors in India," the report identifies key factors driving property appreciation across the country. These factors include proximity to city centres, upcoming infrastructure projects, access to social amenities, tourist attractions, and affordability.

The real estate sector in India is experiencing growth, fuelled by ongoing infrastructure development. Micro-markets in major metropolitan areas are evolving into prime investment corridors.

Swapnil Anil, Executive Director and Head of Advisory Services at Colliers India emphasized the importance of factors such as better infrastructure, affordability, higher rental yields, capital appreciation potential, tourist attractions, and proximity to city centres when considering investments. He also noted that the rise of remote and flexible work options has made tourist destinations in India more appealing to investors.

The report highlights the role of infrastructure projects in driving real estate investments. Key growth drivers include employment opportunities, regional connectivity, access to healthcare and education, safety, environmental sustainability, good governance, and political stability.

Umakanth Y, Senior Director and head of Delivery and advisory Services at Colliers India anticipates that micro-markets near financial and industrial hubs in major Indian cities will gain increased attention in the coming years. Post-Covid-19, there has been a notable rise in demand for villas, farmhouses, plots, and land in locations close to nature and metro cities, he noted.

The report identifies several emerging real estate corridors across India. Hotspots include Vasai Virar, Bhiwandi, and Neral-Matheran in Maharashtra due to the availability of non-agricultural land parcels, upcoming infrastructure projects, and the presence of reputable developers. Neral-Matheran, in particular, is highlighted for its significant potential, boasting an average annual rental yield of 15 percent for holiday homes and expected fivefold returns on land investments over the next decade.

Other areas attracting investments include the Sanand Nal Sarovar corridor in Gujarat, ECR in Chennai, Medchal in Hyderabad, and New Town and Rajarhat in Kolkata. These corridors offer ample land availability, increased tourism interest, and infrastructure development, resulting in average annual rental yields ranging from 2.5 to 4 percent and land price appreciation between 6 and 8 percent annually.

The report also underscores the potential impact of proposed infrastructure transit projects, such as the Delhi-Mumbai Industrial Corridor and the Delhi-Ahmedabad High-Speed Rail Corridor, as well as industrial corridors along the Nagpur and Delhi-Hyderabad Highway, which are expected to further boost the real estate sector.