Top 5 new corridors for investment in land
The investors can expect returns of up to five times in the next 10 years on investing in the land parcels of the 5 corridors
New Delhi: Neral-Matheran in Maharashtra and Sanand- Nalsarovar in Gujarat are among the top five emerging corridors for investments in land parcels as investors can expect returns of up to five times in the next 10 years, according to Colliers India.
After buying land parcels, investors would have to develop assets like second homes, weekend homes, holiday homes and retirement homes to generate steady rental income, which along with capital appreciation can result in healthy returns on investments. ECR-Injambakkam-Kovalam near Chennai, Kompally-Medchal-Shamirpet in Hyderabad and New Town-Rajarhat near Kolkata are the other three emerging investment corridors.
"Investing in land is like unleashing a gold mine in the coming years. Learning to monetise land for better yield and returns will prove beneficial in making this investment work for you," real estate consultant Colliers India said in its report 'Top Investment Corridors in India'. The consultant seeks to help investors learn about the upcoming micro-markets/ corridors that can bring a pivotal shift to their financial growth journey. "Moving beyond need-based investments, land can help grow and multiply wealth, and prove to be a source of steady income when monetised right," it added.
Real estate investors generate income through rental income, appreciation, and profits generated by business activities that depend on the property, the consultant said. Neral-Matheran in Maharashtra is expected to witness 5 times return on land investment in the next 10 years followed by Sanand-Nalsarovar in Gujarat and ECR (East Coast Road) in Chennai at 3.5-fold, respectively. Returns in Kompally-Medchal-Shamirpet (Hyderabad) are seen 3 times in the next 10 years and 2.5 times at New Town-Rajarhat near Kolkata.
"The micro-markets close to financial and industrial hubs in major cities of India are anticipated to gain more attraction in the upcoming years and holding real estate in these micro-markets is the key to securing and enhancing wealth for the smart investors. "In fact, it is observed that the demand for villas, farmhouses, plots, and land across key destinations close to nature and proximity to metro cities has increased 2x post Covid-19," Umakanth Y, Senior Director & Head of Delivery - Advisory Services at Colliers India, said.
Investing in land and monetising it in rental format gives 10 times higher yield than ready apartments, the consultant said. "There has been a spike in demand for investing in land at a nature-friendly location and across key tourism destinations. The concept of investment in serene locations has gained significant traction during the lockdowns and travel restrictions during the pandemic and is now on an upward trajectory," Colliers said.