Real estate developers in Amritsar have a good reason to rejoice as they are witnessing increased inquiries from NRI investors. With solid economic growth, infrastructural development, enhanced connectivity, and low costs of living, Amritsar, the second largest city in Punjab, has become a robust real estate hotspot in India. As one of South Asia’s most important international trade hubs and Punjab’s most prominent commercial, textile, trading, and tourist destination, the Tier 2 city is experiencing real estate growth augmented by infrastructure and industrial development.
Locals and NRIs find Amritsar’s real estate sector highly appealing because of the higher relative returns. Despite the city’s vibrant growth, its real estate segment maintains a traditional price structure, making its properties more affordable than those in Tier 1 cities. Consequently, the city’s housing and industrial development have been attracting many NRI tourists and investors.
Emerging as a Mega Project Hotspot
Amritsar is a strategically located city with excellent connectivity via road and rail to the prime cities of India. The city is also home to an international airport that can handle approximately 150 commercial flights every week, including domestic flights. Additionally, industrial corridors are opening up new business opportunities, triggering a wave of economic development in the city. For instance, the eastern freight corridor project will likely be operational by the end of 2022, boosting trade and commerce between the eastern and northern parts of the country. Additionally, the Amritsar -Jamnagar Economic Corridor (also known as Amritsar – Jamnagar Expressway) is slated to be completed by 2025. Furthermore, the government is strengthening Amritsar’s infrastructure in preparation for the G-20 summit scheduled for March 2023.
The holy city of Amritsar is also a popular tourist destination that attracts countless devotees and visitors from different corners of the globe every day. Also, Amritsar is set to receive a Rs 100 crore investment from the Central Government under a project called Swadesh Darshan. Moreover, to attract pilgrims from abroad, the city is planning to host an international day under the same project.
A Thriving Commercial Segment
Amritsar’s commercial segment consists of high-street retail marketplaces, some organized speciality malls, office space, hotels, and industrial buildings. The city’s economy is driven by its manufacturing and service sectors, as well as its thriving grain and commodity markets and excellent education and healthcare systems. Moreover, SEZs developed by the government are generating immense employment opportunities in the city. Also, world-renowned hotel groups, such as Hilton, are making their debut in Amritsar, making the city a thriving tourist hub.
Also, Amritsar is emerging as an industrial hotspot welcoming multinational companies to launch their operations here. Industries play a very important role in shaping Amritsar’s economy. A range of products are produced by the industries in Amritsar, including paper-cutting, panel pins, textile machinery, chemicals, printing presses, wooden screws, engineering goods, and textiles. Investing in industrial properties such as warehouses and logistics has increased in Amritsar due to the growing industrial sector. Considering the prospects of industrial growth, NRIs are increasingly buying industrial plots in the city.
Also, Amritsar offers excellent revenue growth opportunities for investors because of its solid customer base. Consequently, numerous commercial real estate options are popping up in Amritsar, including large-scale shopping centres, business parks, entertainment hubs, and IT parks, attracting foreign investors.
Availability of Housing Options at All Price Points
The increased commercial activities of NRIs in Amritsar have increased housing demand across the city. NRI home buyers expect a vibrant, thriving living environment to satisfy their luxurious lifestyle requirements. With its large selection of residential options, Amritsar perfectly complements the lifestyle of NRIs by offering amenities such as lush greenery, parks, gyms, balconies, open spaces, and jogging tracks. Furthermore, many Amritsar-based NRIs are purchasing homes in the city for retirement purposes. With the rupee depreciating around 10% in 2022 so far against the dollar, NRIs are considering real estate as a sound investment in their homeland.
The promising growth prospects of Amritsar are driving prominent developers to purchase large parcels of land in this Tier 2 city to develop commercial and residential structures with world-class amenities. The city is positioned to compete with any Tier I city, which is why it is attracting customers and investors worldwide.
(By Santosh Agarwal, CFO and Executive Director, Alpha Corp)