Nagpur Realty Set to Beat Slump
Nagpur is a fast growing Tier II city in Maharashtra in terms of real estate. However, the economy in the country is down and has affected most of the real estate markets across the country. As such, sales in most markets are down. Yet, Nagpur is looking at beating this economic slump as it is continuously witnessing growth and new residential projects.
Factors driving the market
There are several factors that stop developers from being deterred by the slump. For starters, Mumbai is facing stagnation due to sky-rocketing capital values and rising construction costs. Property values in Pune too are going up, beyond the affordability range. The next best city for property investment is Nagpur. Hence, it is witnessing good development. Added to that is the improving infrastructure such as road networks, water and electricity supply and good social amenities. Nagpur also has a good land parcel available for development.
One of the drivers of the real estate is the MIHAN SEZ, which is the largest economic development project underway in the country. The MIHAN project consists of two parts: an International airport and a special economic zone (SEZ) with a residential zone spread across an area of 40 km on the southern part of the city. Wardha Road, an arterial road and part of NH-7, is another important driver of the growth in the city.
Interestingly, tourism is another driver of Nagpur’s real estate, as the city is close to tiger reserves such as Bandhavgarh and Kanha.
Slump temporary
While property sales have gone down in the city compared to 2008-09, several developers are hopeful about the market bouncing back in coming times. Some developers also believe that developers who adapted to the changing economic scenario survived in the market. For example, it was easier to sell a Rs 1 crore project in Nagpur during the period of 2008-09. However, rates have crashed in some parts of the city by as much as 30 per cent since then. Hence, developers are forced to sell projects at a lower ticket price. Some of them are looking at developing projects in other cities such as Mumbai and Pune to balance out the gloom.
One of the factors instilling confidence in developers about the bounce back is the number of high-profile builders joining the bandwagon of development in the city. Some of the noted names are Godrej Properties, Mahindra Lifespaces, Tata Realty, which are launching luxury projects inside the city as well as on the outskirts. Another factor which is making developers hopeful is the completion of MIHAN that will boost the property values in the city, as the completion of this project will improve employment opportunities and lead to growth in demand for residential projects.
Though Nagpur has witnessed slow growth, several developers are sure that, with several growth factors driving the market, Nagpur real estate has good times coming ahead.
