Real estate hot spots for 2008

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: Anuj Puri, Chairman & country head, Jones Lang Lasalle Meghraj

In Indian real estate today, the only constant is change. Hot destinations of last year are not assuredly the best options this year, and the next year brings its unique set of emerging investment destinations. The reason for this state of flux is that the real estate boom is causing many of our metros and even some of the previously popular Tier II towns to saturate at an incredible pace. Property prices there skyrocket beyond the reach of middle-income buyers, causing them to look a little further afield each year. IT companies, who are now the primary drivers of the market, are not dependent on central business locations. This means that they can operate from anywhere in India, as long as there is access to skilled manpower and resources.

A fundamental real estate investment mantra is that emerging localities are preferable to established and often saturated ones. Moreover, there is little scope for new market drivers such as malls to find a place in saturated localities. It follows that in 2008, we will be looking at an entirely new set of hotspots. A few of these are given below, along with some vital statistics and the basic reasons for their emerging high profiles on the Indian property landscape

VIZAG

Its growth drivers are availability of land at cheaper cost vis-à-vis Hyderabad, relatively low cost of skilled manpower (as well as lower attrition rates), improving infrastructure and considerable demand. The upcoming commercial and retail destinations in Vizag are Dwarakanagar, Seethamadhara, Gajuwaka, Rushikonda, Anakapalli, Bheemili and Paarwada. For residential investment, the best areas now are Madhurawada, Pendurthy, Parawada, Bheemunipatnam and the areas towards the Anakapalli corridor. Property rates: Seethammadhara (Rs 1,400– 3,000/sqft), Murali Nagar (Rs 1,400–2,200/sqft), Beach Road, MVP colony (Rs 2,800– 3,500/sqft), Siripuram

(Rs 2,500–3,200/sqft).

VADODARA

Definitely ranks high among the emerging investment destinations. The prime residential areas are Alkapuri, Race Course Road, Old Padra Road, Jetalpur, Akota and Fatehganj. Property rates: Old Padra Rd — (Rs 1,200-1,500/sqft) Alkapuri — (Rs 1,900-2,300/sqft), Race Course Road — (Rs 1,500-1,800/sqft).

DEHRADUN