Maharashtra: Real Estate Boom Heading To Small Towns
In Maharashtra, the real estate boom is heading to small towns. A boost in the affordable housing sector has broadened the market in the state. Young buyers, especially those with an eye on long-term investment are considering homes in cities that would otherwise have been written off as financial dead zones.
Nagpur, Amravati, Nashik are attracting buyers for both residential and commercial real estate, says founder and managing director of the realty research company Liases Foras.
Data on property rates and new project launches show that Tier-2 cities in Maharashtra are expanding. A city-wide data report by Makaan.com, a property portal, marks nearly 93 localities in Nagpur that are showing an upward price trend.
The smaller cities are attracting young investors because they can buy a house here within a few years into a job and get consistent, decent returns through rents and sale. The young buyer does not believe that big cities are the safest bet for sales and returns on investment, says vice chairman at Anarock Property Consultants. The house prices are lower in cities such as Nashik and Nagpur, the cost of living is lower too. You get a house for Rs 30 lakh closer to the city’s centre unlike in Mumbai where cheap homes are so far, you will end up commuting for two hours.
In Nagpur, the localities of Pratap Nagar, Amravati Road, Prithviraj Nagar and Wardha Road are shaping up, says the chief business officer at property portal 99acres.com. These localities are known to offer returns of around 15%. Rates here are expected to increase when the Metro project is completed in a couple of years.
Amravati is turning out to be a surprise pick. Property prices are low (around Rs 3,000 per square foot) so it is the good time to take a plunge, says CEO for strategic consulting at realty advisory JLL India.
Information from 99acres also suggests that average property prices in Pimpri-Chinchwad near Pune have boomed from Rs 4,850 per square foot in April 2015 to Rs 5,350 in June 2018. Nashik and Pimpri-Chinchwad have seen many more new launches and got a boost in sales for affordable homes because of availability of social infrastructures like malls and high-end restaurants, like neighbouring metros of Mumbai and Pune.
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