Buying property at a low price offers the prospect of good capital appreciation, but an underdeveloped location also comes with its risks. Here are six picks that hold out the promise of good returns.
Ulwe, Navi Mumbai
This upcoming node of the satellite city of Navi Mumbai is just a kilometre from the proposed international airport and four kilometres from the city centre. “The tender for railway line from Seawoods to Ulwe has been granted and services should start in three years,” says Devang Trivedi, Managing Director of Navi Mumbai-based real estate developers Progressive Group, adding that infrastructural development of Ulwe may result in a spurt in the realty rates of the node.
Price: Apartments from Rs5,000 (about Dh311) per square foot
Whitefield, Bengaluru
Whitefield, the eastern suburban IT hub of Bengaluru, has witnessed strong demand in retail during the past year due to rising mid-income and upper mid-income population in the submarket. “Whitefield alone has four prominent malls,” says Ashutosh Limaye, Head — Research & Reis, JLL India, adding that rents are expected to increase even further with rise in demand from retailers.
The strong social infrastructure with presence of health care facilities, schools, a convention centre and hotels makes it a location with good prospects for the future.
Price: Retail units from Rs12,000 per square foot
Gachibowli, Hyderabad
The Gachibowli submarket includes Gachibowli, Nanakramguda, Manikonda, Raidurg and surrounding locations. It is the next popular IT/ITeS destination of Hyderabad after Hitec City. As connectivity improved over the years, developers such as L&T, Mantri Developers, Emaar and others launched residential projects in Gachibowli.
“The newest trend is [the inclusion of] residential projects within SEZs such as Lanco Hills and Divyasree Orion,” says Limaye, adding that while Hyderabad city’s real estate market is struggling, projects in Gachibowli continue to witness decent sales due to the location and optimal pricing. Prices are currently on the rise and there are new projects being proposed at locations closer to Gachibowli such as Gopanpally, Tellapur and Nallagantla.
Price: Homes from Rs4,000 per square foot
Southern suburbs, Chennai
The southern suburbs of Chennai that cover the major corridors along the Great Southern Trunk Road, Old Mahabalipuram Road and East Coast Road have been witnessing fast development in the past couple of years.
“The growth in IT sector has paved way for overall development of these precincts and large-scale residential townships. This trend is likely to continue,” says Limaye, adding that key locations to watch out for are Pallikaranai, Medavakkam, Chrompet and Tambaram. The demand drivers for residential absorption are robust and of late Chennai has also seen influx of large new MNCs.
Price: Apartments from Rs2,800 per square foot
Nagpur
While the biggest cargo hub in India is a strong growth factor for Nagpur’s real estate, the city’s growing status as an education hub is attracting students from across the country, which, in turn, is driving the rental boom.
“Nagpur is a fast growing metropolis and some of the government initiatives such as the Food Park in Butibori MIDC, the Textile SEZ and the IT Park at Parsodi are driving the city’s economy,” says Girish Shah, EVP-Marketing and Sales, Godrej Properties, whose company is developing the Godrej Anandam project, with all the trappings of a premium lifestyle offering at relatively affordable prices. “One can safely expect returns on investment to the tune of 13-15 per cent a year over the next few years,” says Shah.
Price: Homes from Rs3,500 per square foot
Rajarhat, Kolkata
Rajarhat is a satellite city, planned way back in the 1990s. As per the master plan, it was supposed to be at least three times larger than neighbouring Salt Lake City. Between 2003 and 2008, Rajarhat witnessed a boom that fizzled out after the global financial crisis. In the past two years, construction activity and rentals have started picking up once again, and Rajarhat is now emerging as a location with potential for good appreciation.
“The submarket has witnessed interest from various national and international developers such as DLF, Unitech, Tata Housing and Shapoorji Pallonji, bringing in quality development with better amenities, creating good real estate in the planned town with good potential for returns on investments,” says Godrej’s Shah.
Price: Plots from Rs800,000; apartments Rs3,000 per square foot
