Hinjewadi and Manesar rank highest among the top 17 emerging corridors
ACORDING to the Cushman & Wakefield GRI India Real Estate Investment Report 2007, “India Gaining Momentum”, 17 new corridors emerge as strong investment destinations for investors with different risk appetites.
As India enters the next phase of real estate growth, the exploration of suburban and peripheral developments of major cities as cost saving and risk diver sification measures is emerging as a vital initiator for analysing the potential investment opportunity within these emerging corridors. Hinjewadi (Pune), Manesar (National Capital Region), GST and Sriperembudur (Chennai), Shamshabad (Hyderabad), Devanahalli (Bangalore), Greater Noida (NCR), Panvel and Virar (Mumbai), Rajarhat (Kolkata), Thane (Mumbai), Kokapet (Hyderabad), Bidadi (Karnataka), Chakan and Kharadi (Pune), Bantala (Kolkata) and Tumkur Road (Bangalore) are the 17 corridors that reflect high investment potential.
According to the C&W report, Hinjewadi (Pune) and
Manesar (NCR) emerge as the highest rankers on all parameters and are poised to be prominent locations with promising prospects due to relatively strengthened real estate dynamics and favourable policies
Sanjay Dutt and Anurag Mathur, Deputy Managing Directors, Cushman & Wakefield, add:“Overburdened infrastructure, rising real estate and operational costs, limited availability of large land parcels et al have driven corporates and developers to seek alternative locations within their periphery. These emerging corridors are extensions of tier I and II cities that stand to gain from the existing talent pool and benefits from pre planned infrastructure.”
The corridors are rated according to three broad parameters: Sustain ability, Momentum and Economic Environment, on the basis of a multi variable analysis. The grading of the locations depicts the scale of opportunities within these emerging corridors, which would allow investors to gauge their location preference according to their risk appetite. Locations that score high on sustainability exemplify the strength of their physical and social infrastructure, real estate development in the adjoining markets and the nature of economic activity present with the broader location.
These corridors will have limited exposure to risk and will bring assured returns due to demand dynamics and readiness of infrastructure. Therefore, long term sustainable corridors would emerge as preferred choice for investment from the risk minimization per spective. Some that rank high on this parameter include Hinjewadi (Pune) and Manesar (NCR), GST and Sriperembudur (Chennai), Shamshabad (Hyderabad), Greater Noida (NCR), Panvel and Virar (in and around Mumbai) and Devanahalli (Bangalore). Momentum is an indicator of the pace and direction of the developmental activities along the corridor. There would be considerable strength of local and national players planning projects or venturing into these corridors. Higher score in this parameter reiterates the growth potential of the region. However, entry barrier would be higher and a thorough analysis is required to create appropriate product positioning. GST and Sriperembudur (Chennai), Rajarhat (Kolkata), Bantala (Kolkata) and Shamshabad (Hyderabad) reflect high momentum within their regions.
A favourable economic environment reinforces the faith of local and foreign investors ascertaining the attractiveness of Thane (Mumbai), Kokapet (Hyderabad), Bidadi (Bangalore), Chakan and Kharadi (Pune). This is driven by the favourable government policies environment that would reduce entry barriers providing investors with ease of attaining clearances to expedite processes and the demographic profile of their catchments that would add to the strength of these locations.
According to the C&W report, Hinjewadi (Pune) and Manesar (NCR) emerge as the highest rankers on all parameters and are poised to be prominent locations with promising prospects due to relatively strengthened real estate dynamics and favourable policies. GST and Sriperembudur in Chennai and Shamshabad in Hyderabad also score high and offer similar investment potential and positive environment. Regions like Greater Noida (NCR) and Panvel and Virar (Mumbai), which have performed moderately on momentum and high on sustainability as well as environment, are next in ranking and offer lucrative investment opportunity from a long term perspective. The locations that fall under moderate scale on all three parameters are Bantala and Tumkur Road. However, this would not restrain investments from a long term perspective.
