Property Speaks

Indore Property- A Hot Spot India Real Estate Investment

Written by Administrator Wednesday, 06 April 2011 19:30

Indore is one of the fastest growing Tier II cities in India. According to a recent study metros have reached a stage of saturation, and it is now the turn of tier- II cities to witness the Next IT off shoring Locations. Ahmedabad, Chandigarh, Indore, Kolkata and Nagpur are identified as the next preferred IT off shoring locations for India. The research highlights that these five cities fulfill the requirements that companies look for when deciding on off shoring locations in India, namely availability and costs of labour and real estate, business environment as well as physical and social infrastructure. They are getting high returns at low investment & labour.

The inter- relation  between IT and real estate development is very palpable. A study of Indian real estate activity reveals that the threshold of the IT sector in any city, metro, mini-metro, Tier 1, Tier 2 or Tier 3 city, boost the real estate industry and develop the local economy with a high returns. Thus, Indore is witnessing the inflow of investment from major real-estate developers, IT companies, and the so-called “old-world industry” companies. The  companies like omaxe, raheja, ansal, parsvnath, eldeco has  entered & strike the Indore real estate market.

The city observed high blast in real estate business relative to growth of prices of various types of properties in the last one year. The record shows uneven price appreciation. Some areas recording phenomenal hike like north-east area of the city covering A B Road and Bypass where prices have almost become beyond the reach of common man the maximum appreciation. Even financial analysts reveal that Indore is a profitable and advisable destination for an investor who is looking for rapid capital appreciation and high rental income. The location and future prospects of the city generates a very good opportunity for the development of Indore real estate market.

Residential properties are in high demand in the city, and which are mainly in the form of plot developments, though there are a few apartment project are going in and around the city. The growth in demand for apartments is partly because of rising immigrants from other cities and also due to a 47 per cent increase in population in a decade. According to the research, there is a demand for at least 1,00,000 residential units a year in Indore to accommodate the increase populace.