It is an established fact that scheduled infrastructure projects tend to increase the value of properties in the adjoining areas. This occurs because the infrastructure project becomes a part of USP for the developers or property owners. There have been instances where property prices have increased 50-70% from the announcement of an infrastructure initiative until the operational phase.
Mumbai is ideal for mid-segment residential investment while Gujarat State is the perfect option for industrial real estate investment. As for commercial investment, Mumbai, Delhi and Bangalore are the primary destinations. All these cities and segments saw recovery from the preceding slump and showed considerable growth in 2010.
From the time of independence almost to the 1980s, the development of new premium housing in India was mostly limited to the country’ s new rich and famous, who could afford to buy or build prime bungalow properties in the posh areas of main cities. However, during the later part of this period, there were instances of prime higher-density group housing development, especially in Mumbai, Kolkata and Delhi, based on the redevelopment of inner city bungalows due to the changing urban dynamics within the cities.
2010 saw increased buoyancy on Pune’s residential market, which has been in steady recovery since 2H09. The confluence of price correction ( 10%-25% in 2009) along with rational mortgage rates offered by banks has increased affordability. Moreover, with the improving economic conditions as evident from the increased absorption of office space, there is improved employment security, creating fresh demand for housing in the year 2010. There has been spate of residential launches in the city, with a 10-12% increase in capital values witnessed across all the residential pockets of the city.
With slum redevelopment, large parcels of land can be opened up for proper development, thereby adding to supply in congested areas and exerting downward pressure on existing property rates. Moreover, demand increases because the area’s profile is given an upgrade. To aid slum redevelopment, the most progressive step the Government can take is encouragement of the PPP model. Many SRA schemes that follow this model have seen success in Mumbai, with names such as Akruti, HDIL, Unitech and Hiranandani coming readily to mind. It would not be inappropriate to state that the PPP model has managed to boost a name like Akruti to a high level of national recognition, despite the fact that the company has no significant land holdings in the city.