Until a few years back the banyan city, Vadodara, hardly figured on the listof hot real-estate destinations. Land, commercial and residential propertywas easily available at highly affordable rates. But in recent years, thehuge inflow of industrial investment from across sectors and growinginterest of real estate developers, retailers and IT giants in the tier-IIIcities has put Vadodara on the growth trajectory. It's difficult to find agood piece of land in the best areas at the right price in the city with apopulation of just over 15 lakh.
The Gujarat government is already working on a plan to develop Vadodara as aknowledge city to attract several l leading companies such as DLF, Raheja,Infosys and Satyam to invest in the city. The IT boom is also furtherdriving the housing demand in the city. However, Vadodara still is facingtough competition from tier-II cities. "Vadodara has huge growth potentialbut it faces competition from Ahmedabad and other tier-II cities which arepreferred investment destinations for leading IT players.
The non-resident Gujarati (NRG) investment pouring into the city is alsoexpected to drive the real estate growth," says Sanjay Dutt, deputy managingdirector of Cushman & Wakefield (India). With key cities in the statebecoming more populated, the state government is also working on a twin-citydevelopment project wherein Vadodara and Anand will be developed together.Through such initiatives, the government is encouraging residentialdevelopment in places around the key cities.
Land prices in Vadodara have appreciated by almost 50% in the last two-threeyears. The residential and commercial property prices in Vadodara too haveshot up in the last two years. The cost of office spaces have increased toRs 2500-Rs 3000 per square feet now from Rs 1500- Rs 1700 two years ago.
The residential property prices have jumped to Rs 1500-2000 per square feetin key areas as against Rs 1000-2000 per square feet two years ago. InVadodara, investment in residential projects mainly comes from the actualbuyers as the concept of second home is yet to pick up here.
"The retail as well as office space demand is expected to gain momentum. Several tier-III cities in the population bracket of 60,000 to one millionis on the radar of the leading retailers. However, we don't expectoversupply of retail space in the city," said Shubhranshu Pani, vicepresident, retail services of Trammell Crow Meghraj.
The newly developing areas such as Sindhrot, Waghodia road, Padra road, AjwaRoad and Sevasi are emerging as promising options for investors. Theproximity of the city to Ahmedabad and Surat, the key investment hot spotsand the improving civic infrastructure too are fuelling the growth. Underthe Jawaharlal Nehru Urban Renewal Mission (JNURM), the ministry of urbandevelopment has already approved investment proposals of around Rs 3000 crby the Vadodara Municipal Corporation (VMC) and Vadodara Urban DevelopmentAuthority (VUDA)."
A lot of national retail and IT players are now investing in Vadodara. Alsoseveral international funds too are investing in the local real-estate firmsenabling them to further expand locally," says developer Rajiv Patel of SunWorshipers. However, despite good purchasing power, entry of lot ofretailers in the city is expected to create an oversupply, feels Dutt.
Source: Times News Network
0 comments:
Post a Comment