Amid increased transparency, low psf rates and good projected growth, new areas in UP, Rajasthan and Haryana are picking up.
After researching online and consulting friends in the real-estate sector, Prathamesh Gaur, 30, a businessman from Fort, invested in an upcoming high-rise project in Mohali, Punjab.
“The project is registered under RERA [the Real Estate Regulatory Authority] and the Act has revolutionised the sector there,” he says. “Mohali has good physical and social infrastructure and with the transparency that RERA brings, I will reap good returns on my investment.”
Although it’s still early days in terms of calculating the impact of RERA on emerging markets, a few are showing signs of growth already.
“We finally have the much-needed financial discipline and transparency in the Indian real-estate sector,” says Anuj Puri, chairman of Anarock Property Consultants. “A few tier 2 cities are favoured destinations for real estate investments. The prices are low here and there is scope for a lot of industrial and residential real-estate development.”
Rajasthan, for instance, was first to implement RERA, in June, and is already seeing growth in towns such as Bhiwadi and Neemrana.
“A cargo airport has been approved in Bhiwadi, a new highway is being constructed to connect Jaipur with Delhi. So there were some brownie points there already,” says Ankur Dhawan, chief investment officer at real-estate consultancy PropTiger.com.
RERA has given buyers the confidence to consider such markets.
“With the amount and quality of information now available to the buyers, they are becoming more willing to take the plunge in lesser-known geographies,” says Ashutosh Limaye, national director of research at realty consultancy JLL India.
Other markets likely to see post-RERA growth include parts of Uttar Pradesh, Tamil Nadu, Haryana and the outskirts of the National Capital Region.
“We expect to see areas such as Meerut, Mathura and Vrindavan in Uttar Pradesh grow. What is working in their favour is that the state government is serious about ‘Make in UP’ and is making policies to promote investment in UP,” says Dhawan. “Industrial hubs are emerging along the Yamuna Expressway, generating employment and demand for housing. Plans are also in place to connect Varanasi to Gorakhpur, which will help boost real-estate prices in Varanasi. The prices are low now, which makes it a good time to invest here.”
The wave of change is also passing through Tamil Nadu. “Coimbatore is growing, amid the development of IT parks and business hubs,” says Puri.
New Gurgaon and Rewari in Haryana are catching the focus of real-estate developers. “Buyers are expecting long-term investment options here,” says Anshul Jain, managing director for India at Cushman and Wakefield.
The second wave will open up prospects in regions such as Nagpur and Nashik, says Dhawan, where industrial and commercial development have been picking up pace steadily but where demand for real-estate was still relatively low. “You will then be able to get good returns in Hisar (Haryana), Mysore and even Bijapur in Karnataka,” he adds.