Where to invest in India: Rajkot, Gujarat

Where to invest in India: Rajkot, Gujarat

Why is Gujarat where to invest in India?

We have seen that compared to other states Gujarat under the leadership of Narendra Modi has experienced rapid double digit growth for the last few years. There are no signs of slowing down either with many new investments in infrastructure underway. The investment opportunities for NRI’s are huge, you just need to know where to invest in India.

Gujarat experienced 11% growth for 2011, higher than China

 Why is Rajkot where to invest in Gujarat

Where to invest in India: Rajkot, GujaratRajkot is the capital of the Saurashtra region of Gujarat and the 4th largest city of Gujarat.

Rajkot is ranked 22nd in The world’s fastest growing cities and urban areas from 2006 to 2020

Rajkot is well placed between the booming Jamnagar port and economic centre of Ahmedabad. In the future once the Dholera SIR is developed it will be within 170km distance.

Jamnagar is home of the Reliance Refinery. Rajkot is between Jamnagar and the motor hub that is developing in Sanand, home to the Tata Nano and other new facilities.

Therefore Rajkot will be a place with increasing commerce and activity, and will hold an increasing significance in region.

 OPPORTUNITY in Rajkot – ACE Riverside

Location:

  • Jamnagar – Rajkot Road
  • near the New Rajkot Cricket Stadium,
  • near the proposed New Airport.
  • Surrounded by 17 acres farm land and the Nyari River.

Property:

  • Two towers of 10 Floors,
  • Each with 4 x 2BHK condos on each floor.
  • Each condo is 1360 sq ft.
  • FREE House Keeping
  • Fully furnished option

Complex

  • Swimming pool and Jacuzzi
  • Multipurpose Hall with AC
  • Party Lawn
  • Mini Golf
  • Cafeteria

Prices: from INR 32 Lacs

Call today for more information: 07960 344 399

DOWNLOAD FULL BROCHURE

Read our other articles on Why invest in India over the UK, Special Enterprise Zones and cities such as Jamnagar and Ahmedabad

ACE Riverside was exhibited very successfully at the HDFC India Homes Fair recently

Invest in India instead of UK

Why invest in India rather than the UK

Why investing in India has become a better option

Invest in India instead of UKFrom PropVestment’s recent visit to India and the subsequent dealing and observations from the UK property market we have found a strong case to open the mind and change investment strategies and to invest in India

Breaking this into two arguments, one a basic economic one based on macro observations and trends, and then a more micro one with the current property climate and lending situation in the UK.

Why invest in India – Macro: Economics

Population: Indian population growing by around 16 million a year
This mean there is a continued demand for new housing. Furthermore the average household size is falling so this makes demand even greater.

Income & Growth: with over or close to double digit growth.
The growing affluence means upgrading housings, smaller family units, means demand is rising.
Gujarat has experienced double digit growth and shows no signs of slowing down with huge infrastructure projects. These include new cities like Dholera in an SIR (Special Investment Region) and SEZ (Special Enterprise Zone)

Indian government are spending to develop:

  • High-speed rail freight lines.
  • Power plants to supply an additional 4,000 megawatts.
  • Three new sea ports.
  • Six new airports.
  • 12 new industrial clusters, and more.

Increasing Indian middle class — 500 million and growing
Spending their newly-earned money, ramping up retail sales growth that should average 13% or more for the next several years. This means demand for houses and retail space ultimately increases too.

Overall the Indian property market is one of capital growth rather than rental yields. Basic economics of demand and supply states that with demand rising so much, prices will keep rising, therefore there is plenty of capital gains to be made.

Why invest in India -Micro: UK Property market vs India

UK Prices:
House prices remain very high as sellers do not accept the new market house price levels and are holding out. This results in a sale not happening so the roll over sale doesn’t happen and the market stagnates.
Further the high prices have out priced many first time buyers.

UK Lending:
Even though new products such as Helpful Start and other schemes to encourage lending have come on the market, lending is still very tight. The criteria has stopped many who would have previously got a mortgage, unable to do so.

Risks Vs Returns:
Risks in India used to be fairly high, however now with legal contracts, a stronger financial and legal system it is almost as safe as the UK.
Further with your returns not coming primarily from rentals, the risk of rent is not significant.
The risks in UK have risen with higher risk of rental default as well as in some areas uncertainty with future prices. Overall the risk and reward scenario was very different across these two markets. However they are now coming together with returns significantly higher in India.

 

Criteria

UK

India

Average minimum Capital needed

£50k

£20k

Expected Annual Price rise

5%

20%

Risk

Medium

Medium

 Why invest in India -Proposal

For the young investor or experienced we believe India is a fantastic opportunity.

For the young investor or first time buyer we suggest that if you do not have enough saved for a deposit in the UK, invest in India where you can pull out within 12-24 months and then with the returns you will have enough to buy your property in the UK.

For the experienced investor, you can make significant returns in an hassle free way.

We can advise on many investment options from the top Indian developers with plots of land in excellent locations starting from under £20k.
We have links to Hiranandani, Othello, Synthesis, Ajmera, ACE, Bakeri, Gala and more….

Call us today for FREE advice to explore your options.

Where to invest in India - Ahmedabad, Gujarat

Trends in the Indian Property Market: Where to invest in India- Part 3: Developing cities in Gujarat- Ahmedabad

 Where to invest in India

PropVestment took a few weeks off from its London to find out where to invest in India. We took a look at a number of factors in a property market that differs that in UK greatly. So far we has discussed, SEZs, Satellite Urban Villages and now the capital city, Ahmedabad

We are sharing some of the observations made in India and how these must be interpreted by a Property Investor and how they should affect your decisions with regard to investments in India.

Fact:

While the Indian economy is expanding at a rate of 8%, Gujarat has a growth rate of over 12%, the highest among all the Indian States. As per a July report in the Economist, the infrastructure in Gujarat can compete with that of Guangdong, the economic capital of China. The implication of this is that if you wish to invest in India, the best place at present would be Gujarat as it has an excellent growth rate and infrastructure. The major growth in Gujarat occurs in its upcoming and developing cities like Ahmedabad.

Where to Invest in India – Ahmedabad

Ahmedabad:

Ahmedabad is the commercial center of Gujarat. It is the largest city in Gujarat and has a booming textile industry. It is important in the industrial sector as it houses numerous textile and chemical industries. It is developing rapidly and boasts of notable architecture and large roads with urban planning. It has amazing tourist spots and fabulous shopping centers. The city is known for its education as it has famous institutes including NID, NIFT, IIM-A, and IHM.

  • Where to invest in India - Ahmedabad, Gujarat

    Where to invest in India – Ahmedabad, Gujarat

    Ahmedabad is one of the fastest growing Tier II cities in India

  • Strong NRI investments have led to price rises in the real estate market in recent years

  • Ahmedabad is marked for steady growth in the coming years. Residential property ranges between Rs.600 in Ahmedabad North to over Rs.1200 on Ring Road currently.

  • Taking advantage of high local population, major builders have laid out commercial projects for the city to accommodate retail malls and luxury hotels.

  • The State Government’s vision is to develop Ahmedabad into a world class city through reforms and infrastructure development. Its mission to make the city clean, livable, productive and self sustaining has led to the setting up of IT parks in and around Ahmedabad.

  • With property available at very competitive rates, Ahmedabad is a sound place for real estate investment. The progressive policies of the state government in pushing for SEZs, an organized workforce, considerable investment from NRIs, and the enterprise of the local population will sustain the upward trend the city is experiencing.

 What does this mean? Where to invest in India?

As an investor, you must note that investments in the metropolitan cities of India are not advisable as the rates of urban migration in these cities is very high, which makes them over- priced.

As India is a growing economy, it is best to invest in those states which have growth rates. As Gujarat tops this list, it is top priority. In Gujarat, a great part of the growth occurs in developing cities such as Ahmedabad.

Ahmedabad is well connected to the rest of the country and has potential for high return on investments made. Due to its booming industry in terms of infrastructure, industry, education, transport and tourism, the city is the right choice for property investments in Gujarat.

However with most developments in India you must take caution and vet the project appropriately.

Many UK residents do have links in the region so that is advantageous too.

Like Ahmedabad there is also great opportunities in Rajkot, Vadodara, and in particular Gandhinagar where it is dubbed as the new capital of Gujarat and very close to Ahmedabad.

 READ

Part One : Where to Invest in India: Satellite Urban Villages
Part Two : Where to Invest in India: Special Enterprise Zones

Trends in the Indian Property Market: Where to invest in India -Part two: SEZs, Special Economic Zones & Jamnagar, Gujarat

As mentioned in part one of this series of articles Trends in the Indian Property Martket: Where to invest in India, PropVestment spent some time recently in India and in particular in Gujarat. We wanted to analyse the Indian property market and find out where to invest in india, for the most secure and profitable investments.

Here are some facts we found out.

What is an SEZ, Special Economic Zone

SEZ Jamnagar: Reliance Refinery

Special Economic Zone is a particular area inside a state which acts as foreign territory for tariff and trade operations. Government provides tax exemption (IT, Excise, customs, sales), subsidised water and electricity.

SEZ helps in the development of infrastructure of the area around the SEZ, provides employment to people, makes the exports more viable. All this will helps the country’s products to become more competitive vis-a-vis providing all round development of region.

If 100 acres are allocated for SEZ, then only 30-35% of area is used for setting up plants. rest of the area is used to provide housing facilities, malls, multiplexes etc.
Tax exemption is for specific period say for 10 yrs or so.


FACT:
Gujarat has developed a reputation as the fastest developing state in India, especially since the reign of Narendra Modi and huge amounts of FDI that has been attracted to the state.
Here in the UK there are many NRI Gujaratis that often try investing back home in the state or wish to have an asset base back home in Gujarat. This is not to say that this is only an investment option for Gujaratis, but rather for anyone looking for strong secure returns on their investment.

 

Where to Invest in India: Jamnagar, Gujarat

WHAT DOES THIS MEAN:

Why Jamnagar is where to invest in India

  • Jamnagar is one of the most significant cities in the state of Gujarat. The city’s real estate sector  has got a massive boost, bolstered by a handsome investment of Rs 45,000 crore in development of Special Economic Zones

  • It is coined as the “Oil City of India” with Reliance and Essar Oil refineries and associated industries.

  • Jamnagar real estate is expanding with ground breaking projects, which makes the city an ideal place to invest and live in. Noticing the promise in Jamnagar, a multitude of property developers are eyeing the plots in Jamnagar for construction purpose.

  • Rental returns are equally healthy in the city which can range from Rs 8,000 to Rs 15,000 per month for 2BHK (two bedrooms, hall and kitchen) & 3BHK units.

  • The increasing employment opportunities in the city are also pushing up property values in rentals in Jamnagar.

  • Gujarat is also grabbing attention from the NRI populace settled in different overseas locations. The property developers in Jamnagar are designing exclusive schemes, and establishing overseas marketing offices to tempt the deep pocketed NRIs

  • Jamnagar is seeing breakneck industrialisation which has sent the rates for commercial and residential land in the city rise dramatically. Areas on the outskirts of the city like Khambhaliya Road and Lalpur Road are talking of land prices in the range of Rs 500 per sq metre — a 100 per cent jump in a year and still rising.

  • Residential property prices in Jamnagar have doubled in the past 18 months. The surrounding areas of the city will also boom.

  • Residential property in the city boasts of an exceptional “quality of life” for the residents. This is one of the reasons why it is selling fast. The rental market in Jamnagar is also looking promising.

CONCLUSIONS

Like many other cities in Gujarat, Jamnagar is a very promising prospect especially due to the economic progress made due to the SEZ and the major oil refineries. However with most developments in India you must take caution and vet the project appropriately.

Many UK residents do have links in the region so that is advantageous too.

When looking at a project analyse the future development prospects, proximity to transport links and employment opportunities.

Also maybe some part of Jamnagar, its a little too late, the capital appreciation has already occurred, look out instead for neighbouring areas, or other towns where huge infastructure or industrial projects are getting approved.

Like Jamnagar there is also great opportunities in Rajkot, Vadodara, and in particular Gandhinagar where it is dubbed as the new capital of Gujarat.

READ our Part One of this Series : Where to Invest in India: Satellite Urban Villages

India Land of Contradiction: Implications to the Property Market

I write this week from India, having spent time in Mumbai.

In India contradictions survive side by side as if it were normal to do so.
Everything is just blended here. So much commotion and so many cars jostling for every inch of space on the streets. Here you have the most holy men in the world and the most corrupt living side by side coexisting in the same space.

These contradictions also extend themselves to the property market. In Mumbai, you have the most expensive property in the world, namely Mukesh Ambani new home costing £500m and only a stone through away from it Asia biggest slum Daravi in Central Mumbai, made famous in the recent hit Slum Dog Millionaire and a subsequent BBC documentary.

On one end of the scale, we have the Ambanis monstrous tower costing $1bn, which is currently under construction.
It consists of accommodation for 600 staff. It is the equivalent of a 60 storey building it house, 3 helipads, 6 parking floors to park the 168 imported cars, a gym floor, an entertainment floor and a few guest floors. Ambani’s new private heaven will occupy more than 48,000 square feet of the prime most land in one of the most expensive cities on the planet.

As per 2001 census, 54.1% of the city’s population lives in Dharavi  Asia’s biggest slum.
Mumbai has now spilled over to its neighbouring areas, giving rise to a hand-full of suburban domains.

It is actually very derogate to call this a slum. It actually is the heart of Mumbai. People live seemingly happily and actually thrive. The slum spreads laterally. This is the issue.
This takes up much valuable land. Instead, the plan is to do away with this thriving and productive community and to lock them up in tower blocks. This will then destroy the fabric of the all-important Indian family network, which is one of the most fundamental reasons why Indians not only survives, but also thrive happily.

In exchange for rehousing eligible households in 300 square-foot flats and providing some requisite infrastructure, amenities and commercial space, developers win the right to build developments on the rest of the land for sale on the open market.

The plan has been widely marketed as a win-win solution: a model of slum redevelopment through public-private part nership to be exported around the world.

The project is ridiculously lucrative. Once a no-man’s-land on a peripheral marsh, 590acre Dharavi has found itself in the center of globalizing Mumbai, surrounded by three major railway stations, a bus station and the two major east-west link roads. Most importantly, the Bandra-Kurla Complex, Mumbai’s new financial hub, flanks it where land values rival those of Manhattan and Tokyo.

It continues to be the entry point for many of Mumbai’s migrants and has been home to many families for generations. It has provided affordable shelter, economic opportunities and social mobility for countless people.

Dharvi has attracted support from the most surprising places. The Prince, who visited Dharavi in 2003, cited it as a model for environmentally and socially sustainable settlement because of the way it was organised around people’s needs. He was struck by what he described as the “underlying intuitive grammar of design” that, he said, was “totally absent from the faceless slabs that are still being built around the world to `warehouse’ the poor”.

The economic statistics of the settlement are astounding. They recycle 95% of Mumbai’s waste, there is no such thing as junk here, and everything is recycled and reused.
One million people are reported to call Dharavi home, but for many, it is also their place of business.

Other products manufactured in Dharavi’s cottage industries include soap and leather. One leather worker was so successful that he exported 25,000 belts to WalMart in the United States; he has since moved up and out of Dharavi. The annu al economic output in Dharavi is estimated at $1 billion.

I was amazed to see the levels property prices had reached within this city. The prices in Central Mumbai surpass the expensive price in areas of London.

The difference is India , has one of the strongest growth rates in the world and the property market in Mumbai will be a ridding on this wave. I can see most NRIs being priced out of this market in years to come.

This is a soft launch and is aimed primarily at investors. If you are interested, please register your interest at info@sowandreap.co.uk or call us on 0203 384 5323.

This article is an extract written by one of my mentors Suresh Vagjiani, MD of Sow & Reap

www.sowandreap.co.uk