The global pandemic is a major tragedy and has impacted life as well as the global economy in one of the most disturbing ways ever. As governments struggle between public health and economic choices while battling Covid-19, one view seems to be gaining ground: that trade-offs in real estate are different in the developing countries, like India.
The real estate prices in the country have dropped by up to 20% in the wake of corona pandemic and the resultant nationwide lockdown. For potential home buyers and commercial investors, who have job security or cash flows, it is an excellent buying opportunity. This is the right time to buy a property because buyers are likely to get better deals and prices are definitely expected to go up in the span of next two years, bank interest rates are at all-time low, stamp duty benefits for limited periods have been announced by some states. A lot of bank repossessed properties are also available in the open market.
After the stock market volatility where only a few stocks are on the rise and rest all are taking a beating, people should not be taking risk with their money.
Commercial Property Investment has constantly been a mystery for a common investor. There is a general perception that Commercial Property Investment is meant only for a business class or big investors, though it is not always true, with the right consultant, it’s a walk in the park.
A new concept called Fractional ownership (already popular in developed countries) has started gaining momentum in the big cities of India; this is a concept where you are part owner/shareholder in a big property. A client of mine, a reputed leading land bank owner, whom I am advising is planning a mega project at Nagpur, which would give monthly returns, with investments as low as 50 Lacs, the major advantage of the concept of Fractional ownership is easy liquidity.
Major benefits of investing in commercial rental are that it has the possibility to provide two types of returns. First, it can provide appreciation over the long run. Secondly, the potential to realize a stable return in the form of positive cash-flow on the asset — earned by renting the property out to tenants for monthly payments. Commercial investment can be more advantageous than investing in residential real estate.
Putting money into real estate in Nagpur in the present is one of the best strategies towards a profitable return. Nagpur being the third-largest city in the state after Mumbai and Pune is viewed as safe investment destination because it has a great scope for quality living in the future, being the third greenest city in India.
There may be many, but the two people which I can think of who can be credited with the growth and development of Nagpur city are Union Minister Honourable Shri.NitinGadkari, who also had held the portfolio of PWD Minister of Mahrashtra from 1995 to 1999, whose contributions to Nagpur growth story are immense and are well known and recognised, the second person who comes to mind is Dr. T. Chandrashekhar, who implemented the Integrated Road Development Project (IRDP) during his tenure as the Municipal Commissioner of Nagpur.
Nagpur is synonymous with the word Orange (fruit) and has been known as the Orange City, recently it has also be named as the Tiger Capital of India and has become a major tourist destination, especially for globe trotters coming for Tiger Tourism. Nagpur is all set to become future IT and aviation city – Companies like Boeing, HCL, TCS, Dell, Hexaware, DLF, Ascendas, Lupin,etc. have started or already confirmed their projects in MIHAN – ‘Multi-Model International Passenger and Cargo Hub Airport at Nagpur’. This is one of its kind projects in India. The project is spread over an area of 4,354 hectares, which houses an international airport on 1,364 hectares in addition to 1,238 hectares SEZ that include maintenance, repair and overhaul (MRO) for aircraft, information Technology Parks, Hospitals – AIIMS, besides manufacturing and value- added units. Another 614 hectare of land has been reserved for a rail terminal, road terminal, residential and commercial projects and an international school
Nagpur is also very well connected with the rest of the country as it is geographically located at the centre of India-The Zero Milestone of India is at Nagpur.
Air Terminal: The Dr.B.R.Ambedkar air terminal at Nagpur was commissioned during the First World War and now has an international air terminal interfacing with significant nations like Saudi Arabia, and Qatar with connecting flights to all over the world.
Roadways: Nagpur is a significant intersection for roads with significant public interstates running through the city.
Railroads: The Nagpur railroad station is one the most established and busiest stations in the country and as many as 242 trains run through Nagpur to different part of India, with approximately 160,000 passengers embarking and disembarking. Out of these 242 trains, 65 are daily trains and 26 end and begin at Nagpur.
Nagpur Metro: The state government has developed a Maha Metro project at an estimated cost Rs. 10,000 Crores in Nagpur with 36 stations, interconnecting the entire city. The metro will further lift the financial advancement in the city, with its commercial BOT projects. The Honourable Finance Minister Nirmala Sitharaman recently gave the Nagpur Metro phase II project a go-ahead, announcing it in her Budget speech. Metro Phase II has a length of 43.8 Km with 32 stations. The estimated cost of Nagpur Metro phase-II is Rs. 6,708 Crore, out of which Rs. 5976 Crore will be the centre’s contribution. On completion of Metro Phase II, Nagpur will be well connected to surrounding MIDC areas.
Phase-II Corridors:
- Automotive Square to Kanhan- 13 Km with 12 stations.
- Mihan to Butibori MIDC ESR- 18.7 Km with 10 stations.
- Prajapati Nagar to Transport Nagar-5.5 Km with 3 stations.
- Lokmanya Nagar to Hingna- 6.6 Km with 7 stations.
The recently adopted Unified Development Control and Promotion Regulations for Maharashtra State (UDCR) will see further growth of the city. Property developers in Nagpur are gearing up to meet the evolving and ever increasing requirement for commercial and residential spaces. The only drawback of the new rules maybe that the City may see Vertical central growth rather than Horizontal growth, putting a huge load on decade’s old existing infrastructure, which may be disastrous for Nagpur.
It’s virtually impossible to predict how long and how much the pandemic will impact the economy, but history shows that Indian real estate markets always bounce back much faster than the Punters or the Pundit’s predict, therefore don’t hesitate in investing at Nagpur.
With 32 years for experience in the field of Real Estate in selling and leasing Commercial, residential, Industrial and agricultural properties, Roshan real estate is all set to help its patrons take advantage of the brilliant economic opportunities the future presents. You may contact us at pankajroshan@roshanrealestate.in or visit our website www.roshanrealestate.in
