5 Reasons That Make Indore A Real Estate Hotspot
Indore, the commercial capital of Madhya Pradesh, is one of the fastest-growing Tier-II cities of India. Also known for its cultural heritage, the city has been on the radar of many real estate developers to fulfil the growing demand for real estate from both end users and investors. The city, the headquarters for Indore Division and Indore District, is spread in an area of over 530 square km.
In the past few years, the city has emerged as a destination of choice for real estate investors and home buyers for a variety of reasons. MakaanIQ tells you about five things that make Indore a new favourite among real estate investors:
A 'smart city' in the making
Indore is among the first 20 that were chosen to be developed under the Smart Cities Mission, a pet project of Prime Minister Narendra Modi that will develop 100 cities in phases. Indore is to be developed as a smart city with an estimated budget of Rs 7,940 crore. It is to house the best amenities, social and civic infrastructure, and affordable housing options. These make the city an attractive destination for real estate investors. Also, once Indore has been developed as a 'smart city', the value of property here will rise many times over because of its infrastructure and high demand.
A centre of learning
Indore has a host of reputed educational institutions that make it one of the prominent educational hubs of the country. The city has reputed institutes like Indian Institute of Technology (IIT, Indore), Indian Institute of Management (IIM, Indore), Institute of Engineering and Technology, Devi Ahilya Vishwavidyalaya, Maharaja Ranjeet Singh College of Professional Studies, among others. These institutions have been attracting students from across the country, even abroad, who come to study or live here. This population of students add to the demand for rental real estate in the city. So, there has been a spurt in the number of apartments being constructed for this purpose in the city.
Indore is the trading capital of Madhya Pradesh and has one of the biggest local economies in Central India. The city has various textile, oil seed extraction, paper and straw board industries. Other industries here include RCC pipes and poles, electrical machinery and appliances, electronics goods, and asbestos products. The city is also home to the country's largest trans-shipment centres for transporting trucks. Because of its strong economy, the city creates ample employment opportunities, attracting workforce from different parts of the country. These give a push to both rental and end-user real estate.
Besides, given a good economy, the city boasts a good per-capita income which further increases the capability of potential home buyers to invest. These give rise to a high demand for real estate in Indore.
According to recent reports, information technology giants TCS and Infosys plan to set up offices in the city. These offices are likely to become operational by 2017. Additionally, 12 more companies have approached the state government to purchase land at the Crystal IT Park, Indore. The coming of big companies to the city will create more employment opportunities, attracting more working population as well and further enhancing the need for homes.
Also, the city's civic infrastructure is set to see a new entrant, the Indore Metro. The Metro here will cover a distance of 107 km and will be the first in India to have driverless trains.
The property prices in Indore have been ruling low at present. The average price of property for sale in Indore saw a decline from Rs 2,615 per sq ft at the end of January 2016 to Rs 2,350 per sq ft at the end of April 2016. This decline was on the account of a general slowdown that the country's real estate sector was going through. The low prices at present and the upside that the city offers in the coming years suggest that this may be the right time to invest in real estate here.