Why Should Land Investment in Nagpur 2015? - PatniProperties

WHY WE MUST BUY LAND OR PROPERTY IN NAGPUR BEFORE 2015?

Why Should Land Investment in Nagpur 2015? - PatniProperties

Yes, this is the questions one must get answers to before you arrive at a decision of purchasing land or making real estate investment in Nagpur. Before we start explaining the "WHY WE MUST BUY LAND OR PROPERTY IN NAGPUR BEFORE 2015?"

Advantages of buying agricultural or non agricultural land in Nagpur, we recommend you to go through our Future Plans section which explains the activities that are taking place in Nagpur. This is just the start of what could be the well planned Mega city of tomorrow.

The tremendous support of the Government, commitment from the political leadership of the Vidarbha & state towards fulfillment of MIHAN project, extremely encouraging response from the Indian & Global corporate companies like IBM, HCL Computers, DELL, Hexaware, Infosys, Zeon, Reliance, Ascendas, TCS towards investments in Nagpur has been an eye opener for many real estate development companies. Many national level developers like DLF, Sahara, Eros Group, K. Rahejas’, Gitanjali Gems, Godrej  & many more reputed builders have shown interest and purchased land for developments.

New Nagpur Will Be The Most Planned Township In India,

A Class Infrastructure

Many activities are taking place right now on the ground, which clearly gives us the hint that Nagpur will be the right place to live.

Things are happening with more than anticipated speed.

Why there is so much of the work being done in Nagpur?

Following are the strategic advantages of being in Nagpur & near MIHAN:---

•        MIHAN has a strategic location, as it's at the geometrical center of the country and is easily accessible by road and rail.

•        Metro Rail project and Mono Rail project.

•        • Multimodal International Hub Airport integrated with Rail and Road terminal will give an excellent Multimodal transport system and   save huge logistic cost.

•        Availability of freehold land at reasonable rates. The Project offers good returns on investments made.

•        Availability of world-class infrastructure at economical rates will enhance operations.

1.       In-house captive Power Plants will ensure uninterrupted and quality power supply through well-planned distribution network.

2.       An adequate quantity of water supply.

3.       Easy availability of raw materials from vast catchment area.

4.       Availability of qualified and skilled manpower at economic wages.

•        Inherent benefit of low cost of living compared to other cosmopolitan cities.

There is no doubt that Nagpur is ready to take off as the city of 21st century & the real estate prices are going to shoot off the roof. Though the real estate prices in fact have never been this high in the last decade or so, the recent developments are encouraging the investors and property buyers to profit from it. The developments in MIHAN, SEZ project and other establishment of other satellite towns and facilities are compelling the demand out go supply and availability of land. Along with that the boom in the number of IT and ITES companies in Nagpur, the city is also witnessing a corresponding boom in its realty prices. Real estate prices generally fluctuate as per three parameters: demand-supply ratio, site location and the perception of the prime purchaser.

Real estate in Nagpur has fared positively on all three counts. For the last two or three years, Nagpur has seen an unprecedented demand for land, spurred by the arrival of IT and ITES companies, commissioning of SEZ, and developments at MIHAN. The growth of the IT industry has not only increased demand for both office spaces for the companies and residences for their employees, but has also catalyzed the growth of the retail space segment. Demand for land has clearly far outstripped the supply, thus pushing up land values in pockets earmarked as the IT corridor and the nearest developed areas. Besides, with plans for the International Airport, Fab City, Outer Ring Road and New Nagpur all gradually taking concrete shape, the perception that Nagpur is a happening place is gaining currency nationwide, among multinational companies as well as developers. As a natural corollary, land values in areas close to these are which figure high in plans for New Nagpur have seen a sharp rise in prices.

There are many reasons to believe that the same growth performance may continue in the coming period. Political stability, an industry-friendly environment, stupendous support from government & local bodies for infrastructure developments, less labor issues and unionism & other social and cultural factors are the biggest drivers for real estate growth anywhere; the Nagpur has been fortunate on all counts. Spurred by the IT and call center businesses, and the easy availability of cheap housing loans, real estate prices across most parts of the country are raising. If the banks are more forthcoming, it is because the nature of real estate transactions has changed and risks have reduced. The boom has also been spurred by new sources of funds entering the fray. Equity funds, banks and financial institutions are discovering that returns on real estate can be stable and attractive.

There will be no dip, experts predict. That must be music to those who have already invested, and is a wake up call to all those who haven't, so far. 

Spurred by growing demand, real estate developers are pushing aggressively by kicking off new projects or buying fresh land wherever available. Interestingly, even as prices rise, properties continue to be sold out or leased out in a jiffy.

Comparison with Hyderabad International Cargo Hub Project,

Very recently, Andhra Pradesh Government has also started work on Hyderabad International Cargo Hub Project. After having made the announcement, the property rates in the nearby cargo area have exploded manifold. People have made huge money. Those areas where the land rates were hardly Rs. 3000-4000 per Sq. Mt. (Nearly Rs. 300-400 per Sq. Ft.) were started commanding Rs. 15000-18000 per Sq. Mt. (Nearly Rs. 1500-1800 per Sq. Ft.) Within a short period of five years the property rates have increased 5 times and it is still experiencing the same momentum in the appreciation of the value of property. Same is going to happen in Nagpur near the Multimodal International Hub Airport at Nagpur (MIHAN) where the land rates right now are much lower considering the potential for the value appreciation and the rate of return on the investment. A completely new township called New Nagpur is being established {Read Future Plans} by the Government with the help of Private Global partners. It is going to be the most advanced, well planned & integrated township with five star infrastructure facilities. Though the value of land has gone up recently the real jump in the prices are yet to come. As compared to Hyderabad, where the Cargo Hub on the same pattern & the same scale of Nagpur is being established, the property rates are less than 25% of the value. The rates in New Nagpur or near MIHAN are around Rs.4000 per Sq. Mt. Or Rs. 400/- per Sq. Ft. They are rising but we expect the momentum in price rise is likely to increase in coming 4-5 years, especially after 1-1/2 years when the project would complete and companies would start functioning. All those related to realty development, real estate investors, NRI, HNIs, Industrialist, Business Houses has shown tremendous interest in buying & investing in Nagpur and they expect that the prices may go up to Rs.10000-15000 per Sq. Mt. Or Rs. 1000-1500 per Sq. Ft. With modest expectations.

Real Estate Investment in Nagpur Before 2015

Real Estate Investment in Nagpur Before 2015

Nagpur Real Estate is in the news because of the investments by NRI is here. More and more NRI's investing in Indian tier II cities. The intense demand for residential and commercial properties coupled with the high buying power of NRI’s is pushing up prices beyond a reasonable limit in Nagpur. Property developers in the city are making hard cash in the wake of a number of real estate deals that are waiting to be struck soon.

Realty prices in Nagpur are going through the roof on speculative buying as high net worth individuals, including non-resident Indians are believed to be fueling the rise. Brokers say that huge tracts of agricultural land around the city have been purchased by parties who haven't even seen the property. Such deals are being done on the Internet and registered through a power of attorney arrangement with the broker.

Real estate agents say this clearly demonstrates that a vast tract of agriculture land has changed hands. According to them, most of the money is coming from outside Nagpur. There are some big developers who are planning new townships such as the Satyam Group. Local builders too have purchased large areas of land for constructing housing complexes outside the city.

Huge amounts are also being pumped in by NRIs who don't necessarily have their roots in Nagpur. In dollar terms, the amount isn't much and investors see a lot of potential in tier II cities such as Nagpur.

There is no farmland around the project demarcated area which is available for sale. Some real estate funds from India and abroad are also said to have made inquiries about land prices here and this too has added fuel to the fire. Builders, hoteliers and corporate houses to have made surveys.

Multimodal International Hub Airport at Nagpur (MIHAN) & Special Economic Zone (SEZ). The Government of Maharashtra with the co-operation of Government of India is developing a Multimodal International Passenger and Cargo Hub Airport at Nagpur (MIHAN). This includes the up gradation of the existing airport to International standard and expanding it by constructing a second parallel runway, most modern passenger and cargo terminal building with the state of the art facilities for passenger, baggage and cargo handling. The whole design for the airport has been prepared by M/s L & T Ramboll Consultants along with Zurich Airport. We are following the consultant’s report for the development of airports  and other allied facilities. This is supported by development of Special Economic Zone abutting the airport along with Rail and Road Terminal, Housing and allied facilities, etc. The various Advantages of Nagpur can be looked from the following viewpoints:

Location:

•        Nagpur is located in the center of India and has the zero mile of India.

•        It has five National Highways passing through the city of Nagpur.

•        National Highway No.7 passes along with the MIHAN Project boundary.

•        The major East-West and North-South Trunk Rail routes pass through Nagpur.

•        Over 270 International flights fly every day over the Nagpur city.

•        Aviation Advantage:

•        • Nagpur airport is operational throughout the year. It has no fear of fog, snow, dust storm or heavy downpour. Thus, it is operational    for 365 days X 24 Hrs.

•        Nagpur airport is fully equipped with night landing facilities, emergency landing, etc.

•        Nagpur Air Traffic Control is one of the busiest in India.

Availability of Land and Soil Conditions:

•        The land at the MIHAN Project site is almost a flat land needs a minimum site grading.

•        21º - 7º North Latitude and 79º - 2º East Longitude.

•        The soil is of excellent quality and foundation strata available at a depth of a few meters

•        Due to excellent soil condition, there are considerable savings in the construction cost.

•        Ample land, i.e. 100 to 120 Acres and even more can be made available.

Special Economic Zone (SEZ):

•        The Govt. Of India, Ministry of Commerce, has already accorded approval to the Special Economic Zone within the MIHAN Project in the    month of August 2005.

•        The various advantages and concessions of the SEZ shall be available to units within the Project, the copy of the Special Economic Zone    Act., 2005 of Govt. Of India and Legislative Bill of 2004 of Govt. Of Maharashtra is enclosed.

•        Along with other advantages of SEZ, no tax regime and non-applicability of labor laws will be the most advantageous for Manufacturing and other Industrial units.

Captive Power Plant:

•        To ensure the quality and uninterrupted power supply to the SEZ and MIHAN project, the Maharashtra Airport Development Company (MADC) is establishing a coal based Captive Power Plant of 100 MW capacity (2 X 50 MW) with 25 MW diesel generators back up, on public private partnership basis.

•        Being in SEZ with tax advantages, Power Tariff will be one of the lowest in India.

•        The Business Plan for Captive Power Plant is prepared by the consultants M/s. Ernst & Young Pvt. Ltd.

•        The Transmission and Distribution Network is designed by M/s Premier Mott MacDonald.

•        Environmental clearance for this plant has been obtained.

•        Coal linkage can be obtained from mines at a distance of about 60 kms.

Dedicated Water Supply:

•        MADC has planned a dual water supply system, both for domestic and non-domestic purposes.

•        The quality of drinking water shall be zero bacteria level.

•        The source of water has been fixed from Venna River, which is about 30kms, away from the project.

•        The planning and designing work for the water supply system is being undertaken by M/s Kirloskar Consultants Ltd and has been completed and tenders will be invited shortly.

Road Network:

•        The complete network of the roads with 6-lane, 4-lane arterial roads and 2-lane sub-arterial roads along with proper interchange at the junction of National Highway No.7 connecting the project area has been planned by MADC. The tender for the work of the road network has already been awarded.

•        The MIHAN project will have complete underground sewage and storm water drainage system with foot paths and greenery on both sides of the roads.

•        State of the art street lighting system will be designed by Philips/Bajaj International.

Get more Information at Patniproperties

Sources for Today’s Article:

“Why to Invest,” Universeinfrastructure web site, August 31, 2014;

  http://www.universeinfrastructure.com/whytoinvest.aspx.