WHY WE MUST BUY LAND OR PROPERTY IN NAGPUR BEFORE 2015?
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.
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| 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.
Sources for Today’s
Article:
“Why to Invest,” Universeinfrastructure web site, August
31, 2014;
http://www.universeinfrastructure.com/whytoinvest.aspx.
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.jpg&container=blogger&gadget=a&rewriteMime=image%2F* "Nagpur Emerging Fast To Tier I City in India (3)")
.jpg "Nagpur Emerging Fast to Tier I City in India – PatniProperties")
