Mushrooming Realty Markets in 2016 along Major Industrial Corridors

With manufacturing poised for growth, real estate in adjoining areas likely to see an upswing.

Today, there is a growing emphasis on creating jobs through various governmental programmes and projects leading to a revival of the manufacturing sector in India. There is a buzz in the manufacturing sector over the increasing focus of the government to drive the engines of growth by introducing numerous measures like ‘Make in India’, ‘Ease of Doing Business’ and many such initiatives that are expected to transform the economy exponentially. The stand-out sectors are expected to be the manufacturing and infrastructure sectors.

The Hot-Spots Likely to Develop

The spotlight is on the growth in manufacturing especially in the five major industrial corridors of the nation, that are endowed with the potential to be the hubs for the revival of the manufacturing sector in India. These are the Delhi-Mumbai Industrial Corridor (DMIC), Amritsar- Kolkota Industrial Corridor (AKIC), Mumbai-Bangalore Economic Corridor (MBEC), Chennai-Bangalore Industrial Corridor (CBIC), and the Vishakapatnam-Chennai Industrial Corridor VCIC). Pawan Jasuja, Director, Finlace Consulting Pvt. Ltd. strongly believes that, “The rise in industrial activities will definitely increase demand for office space and other commercial properties like industrial land. This will convert into more demand for residential units, especially in the affordable category.”

The Impact of the Development on the Areas

The Delhi-Mumbai Industrial Corridor is expected to influence 20 cities in the proximity of the areas it traverses through. The expansion of the zone, along this corridor will lead to development of the infrastructure, in different spheres. The impact on the housing sector in and around these areas, along the corridor will be huge and will trigger an avalanche of developmental work, adding to the economic recovery of the region. A railway freight line of 1438 kilometers from Uttar Pradesh to Mumbai, along this corridor, will be the key to generating about 3 million jobs, creating a large market of budget home buyers. Dadri and Charani Vihar in Ghaziabad are expected to benefit from the metro connectivity planned for it and the neighbouring industrial zones in the area. Additionally, the industrial hub at Bhiwadi that boasts of great connectivity with NH 8 and NH 71 will also witness an upsurge in demand for affordable residential accommodation. The satellite nodes on the Sarhej-Gandhinagar Highway, shall reap the benefits of the increasing focus on development.

Amritsar-Kolkota Industrial Corridor

The Amritsar-Kolkota Industrial Corridor will be instrumental in boosting the development of a number of cities along its way. First and foremost, Ludhiana will witness rapid growth in a major way. In addition, places like Janakpuri, HM Nagar,Dalbazar and Guru Arjandevnagar. In the east Patna will benefit immensely with areas like Frazer Road, Defence Colony, Naya Chowk and Human Nagar, with its base of SMEs, growing rapidly. Even Kanpur is likely to show an upward trend in growth with areas like Triveni Nagar, Cooper Ganj, and Shankaracharya Nagar showing a steady upswing. Some other areas that have a promising future are Sadampur, Ratanpur and Bhagwanpur in Varanasi, in Durgapur, areas like Bidhan Nagar, Benachity and Haribazar may benef hugely. In Asansol, areas like Munshibazar, Wellington and Kumarpur will stand to gain.

Mumbai-Bangalore Economic Corridor

Cities like Pune, Mumbai and Bangalore have already reaped the benefits of this corridor and it is now time for smaller towns of the industrial hub at Tumkar Road to reap the rewards. These places have the potential to attract investors and buyers to its attractive prospects. Localities in and around Shantinagar and Kundur will also benefit from the growth in future. Kolhapur, a famous textile hub has also seem vast improvement in demand. Other major growth areas include Vidyanagar and Temblaiwadi.

Chennai-Bangalore Industrial Corridor

The Chennai-Bangalore Industrial Corridor connects the cities of Sriperumbudur, Ranipet, Bangarpet and Hoskote and in the process boosts the commercial as well as residential housing prospects of these places. Although the project is in its infancy, it is already seeing an upswing in development in certain pockets along the route. The satellite towns near Bangalore are in the process of carving for itself a reputation as a educational hub as a number of educational institution have chosen the place to spread its wings. What add to its attraction is that it is strategically placed at the intersection of NH4and NH207, both of which endow it greater accessibility. Other urban boroughs that are on the verge of seeing a rise in demand are Sikarajapuran, Thendrainagar, and Zionnagar in Ranipet and Mabakkam and Vellaganni in Sriperumbudur.

Vishakapatnam-Chennai Industrial Corridor

VCIC is another important corridor that will increase the demand for real estate in the areas under the influence of the highway. Located on the NH5 the city of Nellore, which is an important center for agriculture and aquaculture, id poised for rapid growth. The strategic areas with potential to develop into realty hot-spots are Parameshwari Nagar, BalajiN agar, and South Rajupalem. Special attention needs to be drawn to another area with great growth potential that of Vijaywada in Andra Pradesh. The city has a political significance and is due for a greater role in the realty field as a commercial hub and an upcoming realty hot-spot soon. The recent status of a ‘Smart City’ in the making will add flavor to the mix that it already possesses. The towns of Machilipatnam, Tenali and Guntur are major areas to look out for.

In conclusion it can be said that these industrial heavy weights can bloom into residential realty havens given the growth potential they hold.