Investing in residential real estate is different from purchasing a home to reside in. In the latter case, you have to consider several factors like the proximity of the house to your work or children’s school, amenities offered, etc. When it comes to investing in real estate, you need to consider an additional set of factors like the potential of the property for capital appreciation, rental income generation, and more.
If you are scouting for the next hot investment destinations in India, then you need to look beyond established metros and search for emerging markets that have huge growth potential. And, one such emerging investment hub is the twin cities of Vadodara – Halol in Gujarat.
Overview of Vadodara’s Rapid Growth over the Years
Situated on the banks of River Vishwamithri, Vadadora (formerly known as Baroda) has a long and illustrious history that spans centuries. Located in the central part of Gujarat, Vadodara is one of the upcoming cosmopolitan cities in India.
It’s an industrial city with hundreds of factories and industries across sectors, providing employment opportunities to many. Availability of raw materials, huge local demand, an environment conducive to exports, skillful mobilisation of human resources, and an entrepreneurial spirit has transformed Vadodara from a sleepy town to a fast emerging industrial city.
Impact of Vadodara’s Economic Progress on Real Estate in the City
When it comes to real estate, investors have seen unprecedented and huge returns in the last few years. The office and commercial properties in areas like the Race Course Road, Productivity Road, Old Padra Road, Sayjigunj and Alkapuri have seen a whopping 2530% price increase in the last few years. (Source: MagicBricks)
Not just commercial properties, even residential properties have seen significant price appreciation of up to 40% in the last few years. Right now, residential properties are seeing huge capital appreciation in Fatehgunj, Vasna, Jetalpur, Gotri, and Akota. This has led to developers investing in high-rise apartments, individual bungalows, row villas, penthouses, and satellite towns.
Here are a few reasons why Vadodara has emerged as an Upcoming, Hot Investment Destination
• Enhanced Connectivity
Vadodara is geographically blessed. It’s one of the biggest business hubs in Gujarat and is well connected by road and rail to other metros in the state like Surat and Ahmedabad. Vadodara is under six-hours drive away from Mumbai, the commercial capital of India, making it a great choice for a second office for some of the biggest national and international corporations. The Ahmedabad – Vadodara highway is impeccably laid and is considered one of the best road segments in India.
• Emerging IT/ITES Growth
Right now, Vadodara is witnessing rapid growth in the IT/ITES sectors. A few years ago, the IT boom in Pune, led to a real estate boom in the areas neighbouring the Rajiv Gandhi Infotech SEZ near Pune which saw property prices in areas like Mhalunje and Wakad enjoyed huge capital appreciation.
Real estate experts predict that a similar IT/ITES boom in Vadodara in the next few years will lead to a huge appreciation of property prices.
• Dynamic Industries and Fast-Growing Infrastructure
Vadodara has always been an industrial town with several industries across sectors:
• Food processing and agro-based industries
• Mineral mining, quarrying
• Engineering and chemicals
• Forestry and allied industries
• Dairy and related industries
• Plastics and textiles
This has attracted large national and foreign investors to the zone. One such example of companies in Halol is ABB, the French Petrochemical Company, which has plans to invest over $500 million in its plant in Vadodara.
The major industrial growth area in Vadodara lies along the Vadodara – Ankleshwar industrial corridor, which is located on the DFC (Dedicated Freight Corridor) that serves as Vadodara’s gateway to the rest of India. This area has 3 Special Economic Zones (SEZ) and 13 industrial estates.
With huge employment opportunities amongst the companies in halol and rapid infrastructure growth, Vadodara presents a lucrative investment choice.
• Growth of High-rise Apartments and Ample Rental Incomes
In the past, residents in Vadodara preferred individual bungalows, and even today, the growth of individual bungalows can be seen in areas on the outskirts of the city like Ajwa, Kalali, and Sevasi. However, with the rise in IT/ITES sectors and industries, Vadodara has seen a huge influx of young families from the rest of Gujarat. This has led to the growth of nuclear families.
Scarcity of land and preference of nuclear families for apartments, Vadodara has recently seen a huge increase in the number of high-rise towers in the city. These new-age apartments are concentrated in the areas like Ajwa, Harni, Waghodia, Pratapnagar, Bhayali, and in the stretch from Vasna to Kalali.
Investors who have invested in apartments in these areas have been able to see huge rental incomes, due to the huge demand for ready-to-move-in rental units among Vadodara’s young families.
• Development of Halol, near Vadodara
Halol is considered as the twin city of Vadodara. Located on the outskirts of Vadodara along the NH-8, Halol is the industrial centre of Vadodara. Part of the ambitious DMIC (Delhi Mumbai Industrial Corridor), Halol is just 150 kms away from Ahmedabad and is 40kms away from Vadodara.
A major industrial hub, the Halol is home to more than 2000 industries including Hero Motocorp, Sun Pharma, General Motors, HNG, Schneider, Saint Gobain, Aditya Birla and more. Halol is shaping as a satellite town in Vadodara with a huge number of schools, hospitals, restaurants, shopping malls, and other entertainment complexes.
Real estate investments along the Halol – Godhra road look extremely promising.
Vadodara: The Next Biggest Investment Destination
The state government of Gujarat is leaving no stone unturned in its attempts to transform Vadodara into another industrial capital of the state. The developments of residential townships, contemporary office spaces, and enhanced connectivity via flyovers, arterial roads, and ring roads, are some of the stimulators that are transforming the cityscape.
The development of infrastructure, coupled with Vadodara’s industrial sector, has made Vadodara and Halol promising destination for real-estate investors. Right now, the real estate market in the city is far from saturated, meaning property prices are affordable. So, if you are looking to invest in the city, the time is ripe.
Halol is nearly 45 km from Vadodara and to reach Halol you have to take the Vadodara-Halol highway. As of 2011 India census, Halol city had a population of 61000. Males constituted 53% of the population and females 47%. Halol had an average literacy rate of 72%, higher than the national average of 59.5%. Halol is pretty close to Pavagadh and Champaner fort so you can always take out some time to freshen up your mind at these places. The environment is fairly clean,so you get fresh air to breath. Also as a destination, the following also comes with Halol:
• Excellent connectivity within cities and other states
• It has an increased investment from the NRI in manufacturing and production line
• An industrial belt hence making this investment friendly
• Proximity to DMIC (Delhi Mumbai Industrial Corridor)
• Connected to Bharuch and Surat via NH-8
The property rates in Halol are currently stable and not sky high. Additionally, the return on investment is extremely high; hence making Halol a hot destination for investors.
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