Investing in Land for Rental Yields: A Lucrative Opportunity
Investing in land and renting it out can generate 10 times higher yield than investing in ready apartments, according to a report by Colliers India.
The report, titled “Top Investment Corridors in India,” found that the key factors driving property appreciation across the country are proximity to the city center, upcoming infrastructure, social amenities, tourist attractions, and affordability.
The real estate sector is continuing to gain traction, coupled with acceleration in infrastructure developments. Micro-markets in India across major metropolitan cities are evolving as key investment corridors.
The report also found that infrastructure projects serve as a conduit for investments and developments in real estate. Several factors such as employment, regional connectivity, accessibility to healthcare and educational facilities, safety and security, environmental sustainability, good governance, and socio-political stability are key growth drivers for investments.
The micro-markets close to financial and industrial hubs in major cities of India are anticipated to gain more attraction in the upcoming years. 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 have increased 2X post Covid-19.
Some of the key investment corridors across India include:
- Maharashtra: Vasai Virar, Bhiwandi, and Neral-Matheran
- Gujarat: Sanand Nal Sarovar corridor
- Chennai: ECR
- Hyderabad: Medchal
- Kolkata: New Town and Rajarhat
These corridors offer ample amount of land availability, increased traction in tourism and uptake in infrastructure. They are emerging as destination investments with an average annual rental yield between 2.5 – 4 percent and price appreciation for land between 6 – 8 percent annually.
Additionally, proposed infrastructure transit projects like the Delhi-Mumbai Industrial Corridor and the Delhi-Ahmedabad High-Speed Rail Corridor in Ahmedabad; and the proposed industrial corridors along the Nagpur and Delhi- Hyderabad Highway will be a boost for the real estate sector.
- 20 Sep
Flexible Office Space Market in India to Reach 81 MSF by 2025: Report
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- 20 Sep
Hotels in Noida and Greater Noida charge high room rates ahead of two international events
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- 18 Sep
MHADA announces lottery for sale of affordable homes in satellite towns near Mumbai and Pune
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- 16 Sep
Maharashtra Real Estate Regulatory Authority (MahaRERA) to Consider Regulations on Monitoring Quality of Construction
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- 15 Sep
Engineering and Manufacturing Sector Becomes a Major Office Leasing Force in India
The Engineering and Manufacturing sector is becoming a major force in the Indian office leasing market. The sector's growth is being driven by government policies and the increasing demand for chip manufacturing and electronic equipment. The sector's expansion is also creating new opportunities for real estate development in the peripheral locations of major cities.