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Investing: Colliers’ Advisory Report: Land investments in India offer 10X higher returns than ready apartments, driven by city proximity and infrastructure growth. Key hotspots include Maharashtra’s Neral-Matheran corridor with a 15% annual rental yield, while Gujarat’s Sanand Nal Sarovar and other corridors show strong potential for investment.
In a recent report titled “Top Investment Corridors in India,” Colliers’ Advisory Services highlights the lucrative potential of land investments compared to ready apartments, showcasing the substantial returns investors can reap. This report underscores the significance of factors such as proximity to city centers, upcoming infrastructure developments, social amenities, tourist attractions, and affordability as key drivers of property appreciation across India. Let’s delve deeper into the findings of this report.
The Appeal of Land Investments:
According to Colliers India, investing in land and capitalizing on it through rental arrangements can yield returns that are ten times higher than those from ready apartments. This revelation has attracted the attention of investors looking for more profitable real estate opportunities.
Driving Factors for Property Appreciation:
Several factors play a crucial role in boosting property appreciation nationwide. These factors include proximity to city centers, upcoming infrastructure projects, availability of social amenities, proximity to tourist attractions, and affordability. These elements collectively contribute to the growing attractiveness of various investment corridors in India.
Infrastructure and Real Estate Growth:
Infrastructure developments are serving as catalysts for real estate investments. Key growth drivers include factors such as employment opportunities, regional connectivity, access to healthcare and education, safety and security, environmental sustainability, good governance, and socio-political stability. These elements are stimulating investments in micro-markets close to financial and industrial hubs in major Indian cities.
Rising Demand for Land:
Post-Covid-19, there has been a notable surge in demand for land, villas, farmhouses, and plots, especially in close proximity to nature and major metropolitan cities. The allure of these areas lies in their improved infrastructure, affordability, higher rental yields, potential for capital appreciation, tourist attractions, and easy access to city centers.
Hotspots for Investment:
The report identifies key hotspots for investment, including locations in Maharashtra such as Vasai Virar, Bhiwandi, and Neral-Matheran. These areas offer non-agricultural large land parcels, upcoming infrastructure projects, and the presence of reputable developers. Neral-Matheran, in particular, stands out due to its annual rental yield of 15 percent for holiday homes and the potential for a fivefold return on land investments over the next decade.
Other Promising Investment Corridors:
Gujarat’s Sanand Nal Sarovar corridor, ECR in Chennai, Medchal in Hyderabad, and New Town and Rajarhat in Kolkata are also drawing investments. These corridors offer ample land availability, a growing tourism sector, and increasing infrastructure development, resulting in an annual rental yield ranging from 2.5 to 4 percent and land price appreciation of 6 to 8 percent.
The report suggests that proposed infrastructure transit projects, such as the Delhi-Mumbai Industrial Corridor and the Delhi-Ahmedabad High-Speed Rail Corridor in Ahmedabad, along with industrial corridors along the Nagpur and Delhi-Hyderabad Highway, will further bolster the real estate sector’s prospects.
Investors seeking substantial returns in the Indian real estate market should consider the promising opportunities presented by land investments, particularly in micro-markets with proximity to key infrastructure developments, city centers, and tourist attractions. These factors, combined with the evolving landscape of remote work options, make India’s tourism destinations increasingly appealing for investors.
Read the full article here Investing in land yields 10X more returns than ready apartments: Report
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