Best Localities in Vadodara

Vadodara, also known as Baroda, is the third biggest and most inhabited city in Gujarat. This city is located on the banks of Vishwamitri River and is just 139 km away from Gandhinagar, the state capital of Gujarat. Known as the cultural capital of Gujarat, the infrastructure growth in the city is in upswing and the people are witnessing a steady rise in the residential and commercial properties in Vadodara.

This city is emerging as a destination for real estate as it will soon be having the biggest IT parks. Being one among the cosmopolitan cities, the residential and retail sector is also improving with more and more demand for flats in Vadodara. The city comes under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and hence witnessing significant infrastructure development projects in Vadodara such as:

•     construction of SEZ where many multinational companies will start operations
•     the new expressways to enhance connectivity within city as well as to adjacent cities, as well as improvement in roads
•     flyovers, power water and other civic amenities

Newly constructed Ahmedabad-Vadodara Expressway in the northern side of Vadodara has reduced travel time and the traffic congestion. Another expressway from Vadodara to Mumbai is proposed, that will improve the connectivity to Mumbai from Vadodara. Then there is the Ajmer road on the east of Vadodara that connects to Surat, the textile city of Gujarat. The developments along these road networks are making Vadodara a junction point and therefore the builders in Vadodara are looking for properties in Vadodara for constructing apartments. Here is a quick look on some of the localities in Vadodara.

Gowra: Gowra is a mix of residential and commercial properties and is witnessing price rise in property in Gowra by 8-12 percent every year. Resident of flats of Gowra is finding it easy to commute as one can find Vadodara, Goya Gate and Vishvamitri railway stations in close proximity. The other reasons for real estate growth here is the Gowra Lake, which lies in the centre of the city and the upcoming Vadodara-Surat National Highway which is likely to be ready by the end of 2013. Therefore, it is budding residential and commercial locality with increasing price trend.
Price trend: Return on Investment is witnessing an increase of 31% q-o-q. The highest, lowest and the average locality price is Rs. 4,600 per square foot and this is encouraging one to invest in projects in Gowra.

Gotri: Gotri has suddenly become a prime investment destination due to the rapid expansion of the city. One can find the best residential flats for sale in Gotri with ultra-modern facilities and amenities. Gotri is famous for Nisargopachar Kendra at Vinoba Ashram, Gujarat Medical Education and Research Society and for the Island named Yoginagar Township. Basic amenities like water and electricity is supplied by Vadodara Municipal Corporation and Gujarat Electricity Board respectively. Proximity to bus stand, railway station and airport is creating demand for Property in Gotri.
Price trends: The return on investment is witnessing a hike of 10% q-o-q. The prices are for apartments in Gotri are:

Highest locality price: Rs. 2,600 per square foot
Lowest locality price is Rs. 2,400 per square foot
Average locality price is Rs. 2,500 per square foot.
The average price for plots in Gotri is Rs. 16,352 per square yard.

Waghodia Road: Industrial boom in Waghodia road has changed the face of this locality and created demand for Waghodia Road properties. Major companies Suzlon like Larsen and Turbo (L&T) have come up with their knowledge parks in Waghodia Road. Apart from these, other companies in this locality are, CSI Software, Ocean Comp Technologies, etc. Professionals working in these companies are looking for investment in flats in Waghodia Road as well as in plots in Waghodia Road.
Price trend: The return on investment is witnessing a hike of 47% year on year. The prices are:

Highest locality price: Rs. 5,721 per square foot
Lowest locality price: Rs. 3,344 per square foot
Average locality price: Rs. 4,533 per square foot.
The rental rate is Rs. 9 per square foot.

Manjalpur: Manjalpur is a developed area in Vadodara with good infrastructures, shopping malls and residential complexes and is a good investment option for home buyers. Situated next to Gujarat Industrial and Development Corporation (G.I.D.C) belt, this place is encouraging real estate development and demand for property in Vadodara, Manjalpur. Having the best hospitals like Baroda Global and Spandan and Manjalpur flyover near Lalbaug that connects Manjalpur to Rajmahel road and from Pratap Nagar to Viswamitri bridge is adding to the real estate demand. Other than this one can find goods schools and colleges like Shreyas Vidyalaya, Vidyakunj High School, Don Bosco High School, Bharatiya Vidhya Bhavan, etc. in this locality.

Price trends: The return on investment is witnessing a hike of 8% when compared to the year 2012. The prices for flats in Manjalpur are:

Highest locality price: Rs. 3,889 per square foot
Lowest locality price: Rs. 2,877 per square foot
Average locality price: Rs. 3,383 per square foot.

Sama-Savli road: Sama-Savli road is a fast developing residential location and is located just 2 km away from Sama and Karelibuag. The prestigious Ahmedabad-Vadodar Expressway is just minutes away and the Sama-Savli road is surrounded by IT Parks and Industrial belts. Good schools like Ambe Vidyalaya, Delhi Public School, etc. are located at a stone’s throw distance, thus providing relief to the residents of flats of Sama-Savli road.

Price trends: Returns on Investment in this area are witnessing a decrease of 2% q-o-q. The prices are:

Highest locality price: Rs. 2,300 per square foot.
Lowest locality price: Rs. 2,200 per square foot.
Average locality price: Rs. 2,300 per square foot.

Witnessing the current price trend in Vadodara, one can invest in real estate projects like villas, bungalows, high-rise apartments, and low-rise townships, as the prices are quite favorable and affordable.

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Land Acquisition for Outer Ring Roads

Land acquisition is the process of acquiring a land by central or state government for a wide range of infrastructure and economic growth initiatives. After the acquisition, the owners are adequately compensated by monetary benefits or are allocated land at a different location. Land acquisition in India is currently practised under the Land Acquisition Act, 1894. Since 2011, a new law has been proposed with amendments and is being considered as a new law  - the Land Acquisition and Rehabilitation and Resettlement Bill.

Currently, acquisition of land for the Outer Ring Road project has become a new trend in India. Outer Ring Roads are constructed with the objective of relieving the congestion within the city, and also as a landmark for urban growth and for development of further satellite townships

Outer Ring Road in Surat

Acquisition of land for the Outer Ring Road project in Surat is expected to start soon as possible as there are no objections coming from the farmers from whom the lands are acquired. The project is for Rs. 5000 crores, and is being developed by Surat Urban Development Authority (SUDA) and Surat Municipal Corporation (SMC).

The total length of the Outer Ring Road project is 66 km and the project will be carried out in phases. As per the phase I plan, Surat Municipal Corporation will develop 29 km of road stretch which will comprise construction of buildings up to 70 metres in height on both sides of the road.

Outer Ring Road in Chennai

CMDA is planning to develop an Outer Ring Road (ORR) along the dotted lines of Chennai Metropolitan Area (CMA) with the objective to minimize the traffic congestion in the city. A 62 km six-lane Outer Ring Road will connect NH45 at Vandalur, NH4 at Nazarathpet, NH 205 at Nemilichery, NH5 at Nallur and TPP road at Minjur.

The first phase comprises of a distance of 30 km connecting Vandalur and Nemilichery (on Chennai-Tiruttani highway), is expected to be completed by year-end. For this complete project around 750 acres of land have been acquired in two phases. The land is acquired from BH 45 to NH 205 for a length of 29.2 km, covering almost 29 villages and the possession is taken over by CMDA. The acquisition for the second phase is under progress from NH 205 to TPP road covering 27 villages.

The road’s configuration comprises a road and rail corridor. Out of the whole acquisition of 122 metres, a portion 72 metres wide will be occupied by the road and rail corridor. The remaining 50 metre-wide portion will be retained by CMDA for future developments. The cost estimated for the project is Rs. 1082 crores.

The project is to be monitored and coordinated by the Tamil Nadu Road Development Company (TNRDC) on behalf of the Government of Tamil Nadu. This project has been awarded to M/s GMR Chennai Outer Ring Road Private Ltd., for implementing the project in two and half years.

Outer Ring Road in Hyderabad

The Nehru Outer Ring Road is a 158 kilometre long 8-lane ring road expressway which is build by HMDA at a cost of Rs. 6696 crores. In addition, Rs. 3123 crores are contributed by Japan International corporation agency. A stretch of around 124 km covering urban areas like Hi-Tech City, Nanakramguda Financial District, Hyderabad International Airport, IKP Knowledge Park, Hardware Park, State Police Academy, Singapore Financial District, and Games Village has already been opened in December 2012. This provides access to NH 9, NH 7, NH 4 and state highways leading to Vikarabad, Srisailam, Nagarjunasagarand Karimnagar/Mancherial. The expressway is completely fenced and the 33 radial roads connect it with the Inner Ring Road and the upcoming Regional Ring Road.

The land acquisition was done in two phases. In the first phase, around 750 acres of land was acquired; out of which the private land acquired was 500 acres. The land taken for second phase is about 5,500 acres, out of which the Govt. land is about 1,000 acres, and the balance is the private land. The estimated cost of acquisition is Rs. 250 crores.

The Nehru Outer Ring Road aims to improve connectivity and reduce the traffic flow on the existing major arterials between the outer suburbs of Greater Hyderabad. Now, even the APSRTC is planning to build 22 terminals and depots along the Outer Ring Road.

Outer Ring Roads are changing the skyline of many cities and are becoming business hubs. They also play a major role in urban development. However, it is essential to compensate the farmers with the correct compensation, either by monetary benefits or by providing land in another location, to avoid any major objections from the land owners.

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Saket in Delhi – Premium Residential Area

Located in South Delhi, Saket is a well-planned residential colony. It is one of the NCR's upcoming and prominent suburbs. 'Saket' was another name for the ancient city of Ayodhya. It is known for its large sports complex, developed by the DDA in the 1990s, which covers an area of 18.5 acres. Being in close proximity to areas like Noida, Gurgoan, Ghaziabad and also the Indira Gandhi International Airport, has made Saket a prominent locality destination, which has caused great demand for property in Saket.

Primarily a residential area, Saket consists of Press Enclave and many residential blocks named from A to N. These blocks have a mix of multi-storey apartments, row houses and two-storey apartments. Of these, blocks B, C and D are Golf View Apartments, situated near the DDA Golf Course.
Saket has very good transport facilities and is easily accessible by both roadways and metro line. This locality is well-connected through the Yellow Line of the Delhi Metro. The 2 major metro stations found in this locality are the Saket-Malviya Nagar station, which is on Press Enclave Road, and the other is near the Mehrauli-Badarpur Road. Apart from this, Saket has very good bus facilities connecting major parts of the city. Good connectivity has indeed been a boon for the upcoming Saket projects and has increased the sale of the same.

Saket contains many localities and sub-localities. They are:

•    Hauz Rani
•    Malviya Nagar
•    Khirki
•    Sheikh Sarai Phase II
•    Kalu Sarai
•    Lado Sarai
•    Madangir
•    Begumpur
•    Mehrauli
•    Khanpur
•    Neb Sarai

The famous Saket Sports Complex boasts various facilities for cricket, tennis, badminton, gym, athletics, aerobics, swimming pool, table tennis and squash. Apart from this, there are many renowned schools and colleges in this area. Some of them include Apeejay School, Gyan Bharti School, Amity International School, Birla Vidya Niketan, Red Roses Public School, New Green Fields Public School, Amrita Vidyalaya, Kendriya Vidyalaya and Vidya Niketan Senior Secondary School. All these factors have made Saket property attractive as compared to other areas.

Saket is also rapidly evolving as a commercial hub, as there are clusters of retail outlets and office spaces in the community centre. It has emerged as one of the most expensive shopping and entertainment centres of the city. Being in close proximity to other major residential areas like Malviya Nagar, Sheikh Sarai, etc. has increased the shopping malls and retail outlets near this locality. Some of the shopping malls found here include The Square One Mall, Select City Walk, the DLF South Court, The Courtyard Mall, DLF Place, Lighthouse 13, the MGF Metropolis, etc. These factors play a major role in bringing up the value of Saket builders and properties.

Some of the residential flats in Saket launched in the surrounding areas include Anupam Apartment, Golf View Apartments, Ekta Apartments, Harmony Apartment, Shri Sai Shyam Properties, Solar Enterprises, Ashiana Housing Society, Gold Leaf Services, Vikas-Sheel Apartments, Gujarat Apartments, Arora Properties, DLF Capital Green Phase III, Priya Properties & Constructions, Diamond Estates and J.M.B. Estate. The highest price of residential multi-storey flats for sale in Saket is around Rs. 18010 per square foot, and the lowest price is around Rs. 14990 per square foot. The average is around Rs. 16490 per square foot, and the return on investment has witnessed a decrease of 14% q-o-q in June 2013. The average sale price for a commercial office space is around Rs. 26480 per square foot. Being an upscale locality, Saket has very high property values which are expected to remain high in the near future.

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Indian Realty Experiencing More Foreign Investment

Foreign Direct Investment (FDI) is an investment made directly into any production or business in India by a company or an individual from another country, either by purchasing the company or expanding the operations of an existing company or business. Foreign Direct Investments include acquisitions & mergers, building of new facilities, reinvesting profits from overseas, or any kind of property investment in India.

 

In India, foreign investment was introduced in 1991 under the Foreign Exchange Management Act (FEMA), by the then-finance minister Manmohan Singh. India has been ranked in second place by the Global Foreign Direct Investments, and is said to remain among the top destinations for international investors, according to the United Nations Conference on Trade & Development (UNCTAD). A foreign direct investor acquires the voting power in any enterprise by incorporating a completely-owned subsidiary or company in India or by acquiring the shares in that enterprise or by participating in equity joint venture with another investor etc. An NRI buying property in India is also considered to be an example of real estate foreign investment. 

Foreign Investment Promotion Board (FIPB)

The Foreign Investment Promotion Board or otherwise known as the FIPB is a government body which offers single window clearance of proposals on all the Foreign Direct Investment in India which do not have the access of getting approval through automatic routes. FIPB plays a mandatory role in the implementation and administration of Government’s Foreign Direct Investment Policy in India. It is said to have an excellent record of actively encouraging the FDI into the country via quick and transparent processing of all the documents and also in providing proper clarification. 

Latest Updates on FDI Policy in India

The Indian government has liberated FDI limits and rules in several sectors including telecom, oil & gas etc. This relaxation on most of the FDI has been made in order to bring in more capital inflows and also to prop up the sliding currency in India. The government of India has allowed 100% of FDI in Telecommunications, Commerce and other Industries. This move has allowed companies like Vodafone Group, Telenor, and Sistema etc to operate in India without having to form a partnership with an Indian citizen. Apart from this, the Indian government has been taking up initiatives for relaxation in FDI policies pertaining to real estate in India. With the reviving financial markets, and strong economic growth, India is slowly transforming into an investor-friendly property destination. It is estimated that FDI in India will rise by more than 15% in coming times, with regards to the policy initiatives undertaken by the Indian Government. Foreign Investment in India has increased by 6% year-on-year. Therefore, property investment in India is estimated to go up in the near future.

Indian Economy and Benefits of Foreign Investment

Foreign Direct Investment brings in lots of growth opportunities and advantages of cheap wages, tax exemptions etc. FDI inflow speeds the growth of GDP in India as huge foreign investments inject big cash flow in Indian economy. Foreign investment decreases the government’s expenditure as foreign companies with huge cash inflows invest in backend infrastructures and their business needs etc.

FDI usually increased the employment opportunities in India as with high FDI, the growth rate of industrial sector of India also increases as a result of huge employment opportunities.

FDI also brings in more & more real estate growth in India owing to the developing economy and as a result many properties in India are being purchased by NRI’s and other foreign investors.

FDI Trends in Delhi Real Estate

Real estate in Delhi has been attracting huge investments with the recent developments of FDI rules and events and it is estimated that the prices may shoot up in the near future. The Indian government is said to be working on 2 main bills, namely the Real estate regulation bill and also the Land acquisition bill. Apart from this, the government has also approved FDI in many multi-banded retail outlets and other investments in India. Therefore with the new foreign investments coming up, the prices are bound to rise, especially in the commercial property sector, which will directly impact on the residential property sector in India. 

Even though most of the prominent cities in India have been experiencing a price appreciation with regards to residential properties, Delhi, being the capital city has experienced the highest rise in property prices. It is said that real estate in Delhi has increased by up to 5 times within the past few years, with the more number of properties being purchasedby NRI in Delhi and its surroundings. The metro rail network in Delhi and excellent infrastructural developments has also been the major factors for booming real estate in Delhi. The real estate in Delhi is considered as the hottest property in the Indian market attracting more & more foreign investments in near future.

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