...Surat. Which would you advise me to go in for? I live in Vadodara.
Ismael Hussein, Vadodara
As a resident of Vadodara, you are aware of the fact that it is the more cosmopolitan city of the two. It has several good residential projects coming up and is a better choice for purely residential purposes. However, Surat is a better location if you are purchasing the property from investment point of view. The property rates there are appreciating at a faster pace than Surat.
How good is Faridabad as an investment destination? I have been advised to consider a property at Sector 78 there. What are the rates in this area? My focus is both end-use and investment potential.
Chandrachur Biswas, Greater Noida
Sector 78 of Faridabad is still in the process of development and will take at least 3-5 years to reach its maximum investment potential. It makes good sense from a long-term investment perspective, and there are many reputed developers with projects there. These include Triveni, Omaxe, BPTP and Piyush. You will find a decent property in the range of Rs 1,400-1,600 per sq ft.
What are the prospects for commercial office real estate at Pune over the next three years?
K A Bharadwaj, Kharghar (Navi Mumbai)
The short-term reflects a shortage of ready supply of Grade A office space however, the long-term will see the influx of considerable supply as under-construction projects reach completion and proposed ones are finalised. Commercial real estate rates are likely to stabilise in the medium term.
I own a property located approximately 10 km from Mihan at Nagpur. I am in no particular hurry to sell this property, but would certainly like to know how it will fare over the next few years. May I have your professional opinion on this?
Mrs R S Thote, Panshet (Pune)
Nagpur is currently at a nascent stage of development, and overall progress on this front is still marginal. The scenario will not change in the short term. However, Mihan is a good bet for long-term investment since it is venue for the proposed new airport. Nagpur’s property market will respond favourably once the airport goes operational. Also, the proposed SEZ in the vicinity of the airport will add value as a commercial hub.
How will India’s real estate sector fare over the next few years? I don’t believe in the ‘bubble’ theory, but am certain there will be some downward fluctuations. I intend to make some long-term investments and your opinion will help me decide.
Mahesh Khandelwal, Surat
We have every reason to believe that India’s real estate market will be worth close to $50 billion by the year 2010. The fundamentals are strong and will remain so, there is an annual population growth of 1.4%, and the economy is growing at around 9% per year. As a result, there will be continued demand for both urban residential and commercial space in India. The overall demand will be close to 700 mn sq ft in the next three years. Need I say more?
You have gone on record as saying that sustainable real estate is not only the need of the hour but the business model of the future. Do you feel that a switch in current sentiments is possible to bring about a ‘green’ revolution in India?
B K Arora, Ghaziabad
It is a matter of bringing about a change in consumption patterns. We firmly believe that replacing the consumption of ‘grey’ or non-sustainable developments in India with ‘green’ or environmentally sustainable ones will boost our ecosystem by reducing eco-stress, and eventually open up avenues for a paradigm change. However, we do not believe that this argument alone will suffice to bring about the required change in sentiments. The most powerful argument in favour of sustainable real estate development is that the fact that it is also good for economic activity—in other words, business.
The Union Budget has given the SEZ format a real shot in the arm. What areas of Pune will see the most significant activity on the SEZ front?
Dr Namrata Harolikar, Nasik
Currently, the following companies have proposed to establish multi-product SEZs at Pune:
Videocon (at Wagholi)
Bharat Forge/Kalyani Group (at Mulshi Taluka on Nasik Highway)
DSK Group (at Phursungi)
Serum Institute - Biotech (at Manjri/Phursungi)
MIDC - Research and Development (at Chakan)
With so much hype about office and retail real estate, one could be forgiven for thinking that residential space is perhaps nothing but a poor cousin of the other real estate sectors. How feasible is investing in residential space in India today?
Jatin, e-mail
Progress in commercial and retail real estate sectors automatically spells good news for the residential sector, and similarly, the reverse is also true. Indian residential real estate is going nowhere but in the upward direction. On an average, residential properties have given investors a return of anything between 20% and 100% in the last three years. We saw the arrival of many players from South-East Asia, the United States and Europe who have their eyes on new residential townships, as well as technology parks, warehouses and other infrastructure projects.
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