A latest report published by Colliers highlights how there’s never been a better time to leverage the full benefits of real estate investments in India. The report suggests that since the real estate sector continues to get traction, coupled with acceleration in infrastructure developments, micro-markets in India across major metropolitan cities are evolving as key investment corridors.
Investing in land and monetizing it in rental format gives 10 times higher yield than ready apartments. There has been a spike in demand for investing in land at a nature friendly location and across key tourism destinations. The concept of investment in serene locations has gained significant traction during the lockdowns and travel restrictions during the pandemic and is now on an upward trajectory.
Maharashtra-Neral-Matheran the financial capital, economic powerhouse, and industrial hub of India. The business hub, with an established media & entertainment industry. Mumbai is one of the most vibrant and dynamic real estate market in the country due to high property prices, limited land availability, and a growing population, which creates significant demand for real estate. The locations such as Vasai Virar, Bhiwandi, Neral-Matheran, are the key hotspots, led by availability of non-agricultural large land parcels along key upcoming infrastructure developments and presence of branded developers.
The Neral-Matheran corridor has emerged as a major hotspot amongst investors due to the presence of branded developers with sizeable real estate projects, proximity to the city centre, and well-established social amenities like Bhimashankar Wildlife Sanctuary, ND Film Studio, Neral-Matheran toy train, Rambag point. The Neral-Matheran micro-market is considered as one of the key investment regions with an average annual rental yield of 15% for holiday homes and is expected to achieve 5X return on land investments in the next 10 years.
The tourism and industrial hub of Gujarat – Sanand Nal Sarovar corridor, ECR in Chennai, Medchal in Hyderabad, New Town and Rajarhat in Kolkata are also attracting investments. These corridors with ample amount of land availability, increased traction in tourism and uptake in infrastructure are emerging as destination investments with an average annual rental yield between 2.5% - 4.0% and price appreciation for land between 6 - 8% annually.
The real estate investment market for land is still at nascent stage of development in few corridors, while corridors closer to tourism destinations and metro cities have grown multiple times with the impact of pandemic and increased real estate investments. Therefore, the growth rate of second homes or weekend homes in India is expected to grow multiple folds led by wide infrastructure projects planned and under construction across the states.