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.
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.
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.
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.