Emerging growth corridors in India make way for invests

When the new government took charge in 2014, it was expected that the real estate market would get revived, but property prices remained low. As a result, the urgency that usually surrounds the decision to buy a house-for investment or residence alike-abated. What replaced this urgency was complacency; would-be home buyers began to feel that since prices are in a downward spiral, they should delay the purchase of a home until prices fall even further. 

But data suggests that the realty market has remained stagnant, and it is unlikely that property prices will fall even in the latter half of 2016. Thus, these delays may very well be in vain.

Further, experts from JLL India and Cushman and Wakefield suggest that prices of real estate are likely to rise in 2017 and beyond, confirming that 2016 may be the last year that homeowners can enjoy reduced rates. 

Deciding where to invest

Even if you've made the decision to invest, choosing a location to buy property can seem like shooting in the dark. For people who bought houses in Gurgaon 20 years ago, for instance, the property price appreciation would have been a life-changingly pleasant surprise. Similarly, Powai wasn't always the buzzing entrepreurial hub that it is today. But with massive investment in infrastructure and setting up connectivity with Mumbai and other suburbs, it now boasts of being the birthplace of pioneering startups such as Housing and Olacabs and one of the most sought after real estate locations.

But is there a way that you too can discover areas that are on the verge of a real estate boom?

As of January this year, there might just be. As part of its "Smart Cities Mission", the government released the first list of 20 cities it is working towards making "Smart". This list has made it much easier to recognise signs of development a real estate investor must look out for when deciding where to invest. 

You see, when a city has secured adequate water and electricity supply, proper sanitation and waste disposal systems, robust IT connectivity and digitalisation, effective health and education facilities or even greater connectivity to metros, it shows the government's dedication to developing it.

Further, as companies start setting up base, there is an influx of employees, and that increases the residential real estate demand, forcing property prices up. Boisar, an industrial town on the outskirts of Mumbai, would not have been on a home buyer's radar up until a few years ago.

It was under gram panchayat rule and lacked connectivity to any major metros. However, Boisar is now being connected to Mumbai and Gujarat through a 4 lane railway track, and to Delhi through the Delhi-Mumbai Industrial Corridor.

The last decade has also witnessed the creation of over 1,00,000 jobs with companies such as TATA, Raymond and Bombay Rayon setting up shop, as well as the establishment of reputed hospitals and educational institutions in Boisar. These factors have increased the demand for residential real estate, due to which property prices are on the verge of rising.

Similarly, Bahadurgarh was an unknown city in Haryana, until it got its own station on the Delhi Metro rail network and became a part of Delhi NCR. Now, with investors such as TATA Housing having invested 600 crores in affordable housing projects, it's one of the emerging corridors to buy property.

What this means for home-buyers is that identifying ideal places to invest isn't out of your grasp anymore. When signs of development begin to appear, it means that real estate prices are on the cusp of rising. To benefit from this extensive growth and appreciation, it's essential you grab the opportunity to buy a home before it's too late.