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Land Investment in Dholera to give Healthy Returns

No Comments Sub Category:Real Estate Posted On: Feb 14, 2014

Dholera, located about 113 km south west of Ahmedabad, has the potential of developing into a major trading hub in Gujarat. Since it falls under the purview of the proposed Delhi-Mumbai Industrial Corridor (DMIC), it holds bright prospects of transforming into a prominent investment destination in close proximity to Ahmedabad.

Strategic Location

Dholera is expected to be developed into a Special Investment Region (SIR) with the support of the Central and State governments. Emphasis will be placed on converting it into a hub for warehousing and manufacturing industries. The government also has plans to develop an International and cargo airport in Dholera. This move was proposed due to the increased transportation requirements to and from Changodar which is located about 98 km from Dholera along the NH 8A. This is the commercial and warehouse hub in Ahmedabad. It is the base for the manufacturing and research activities of several pharmaceutical companies.

Proposed Infra projects

There are various other projects that are expected to provide a major impetus to Dholera in future. These include the logistics, industrial and manufacturing development along with high-speed connectivity to Ahmedabad via the metro along the Dedicated Freight Corridor (DFC). Considering that Dholera falls under the DMIC, there is the prospect of the area developing into a major manufacturing hub. Consequently, large sums are likely to be invested in developing manufacturing infrastructure as well as sustainable urban centers.

Creation of Jobs

Moreover, a considerable number of jobs are likely to be created in Dholera, especially in areas that are directly impacted by the DMIC. There is expected to be a rise of 20-25% in Dholera alone once the policies related to the DMIC are finalised. On the whole, there is the prospects of about 8 lakh jobs being created along the DMIC.

Prices and appreciation

The current property values for plotted land in Dholera is between Rs. 280-350 per sq.ft. The low prices coupled with the future prospects that the area offers as an investment destination has resulted in developers lapping up available land parcels for future development. There has been a price appreciation between 70-80% in land values in the area in the last two years. The appreciation is expected to increase many fold in the next 5-10 years.

Demand for Land

Currently, the demand for plotted land is more from investors. However, once the area gets developed and becomes industrialised, there would be more end-users settling here. Developers who have invested in land here are offering various amenities like power and water supply, compound walls, landscaped gardens as well as other facilities like club houses to lure buyers to purchase residential projects that they are planning to embark on.

Future prospects

The state government is planning to introduce a Town Planning Policy for Dholera which would make investments in the area a risk-free proposition. However, it is imperative that investors are willing to hold onto their land for a minimum period of about 5 years so as to reap the benefits of their investment. Hence, for those investors who are looking to invest in plotted land as a long-term investment, Dholera could be the ideal area to invest your money in.

 

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