The Indore real estate market is showing signs of revival with growing demand from end users even as property prices remain stagnant for the last three years, according to a latest assessment carried out by the Confederation of Real Estate Developers Association of India (CREDAI)
“There is a good demand from the end users as is evident from the rise in institutional home loan disbursals,” executive member of Confederation of Real Estate Developers Association of India’s Indore chapter Atul Jhawar says.
People involved in the real estate sector are attribute the positive trend to increase in pace of development, migration of people from small towns and rural areas into the city and an increase in demand for affordable housing.
“There is demand from the end users, but lack of liquidity (cash flow) is holding back investors,” Indore Property Brokers’ Association president Rajendra Bhaiyya said.
“However, looking at the future development, this is probably the best time to invest in property.”
It comes as no surprise that the city outskirts along the Ring Road, Bypass Road and the Super Corridor are witnessing more development due to the high property prices in prime localities and the shortage of land for construction activity.
Land availability in the city outskirts also present a better deal for all stakeholders in the real estate market. Whereas land comes at a rate of Rs 10,000-Rs 12,000 per square feet in the city, it drops to around `800-`2,500 per square feet on the fringe areas of Indore.
Brokers, builders and others are hoping that home buyers will shed their ‘wait and watch’ approach in the near future. Time-bound delivery is a must for ensuring success of any project, Rajendra Bhaiyya says.
Indore is bursting at the seams and the ever-increasing pollution and noise levels have given rise to the township culture, a property consultant says. Instead of satellite towns, developers are now more focused on projects in suburbs which are within commuting distance, but far enough from the hustle and bustle of the city.
“Most townships provide an alternative lifestyle, with a pollution-free environment and several facilities under one roof. People who commute to nearby towns are also moving to the outskirts to cut down on their travel time,” property consultant Pratik Gandhi says.