The Super Corridor area in Indore, which was touted as the best investment destination after IT majors Tata Consultancy Services and Infosys announced development centres in 2011-12, has failed to give returns to investors.
Four years ago, property developers had rushed in to launch a slew of residential projects, but now most developers are struggling as a slowdown in the market has taken its toll and investors have also burnt their fingers.
“Out of the 20 projects, investors would have made money in four to five projects while they have got stuck in the remaining projects,” Rajendra Bhaiyya, president of Indore Property Brokers Association, told Hindustan Times.
“Some projects have failed to take off,” he said.
While property consultants are upbeat about the long-term prospects of the Super Corridor, there is concern over the slow pace of infrastructure development.
“The Super Corridor is a long-term investment bet and investors need to have patience. A couple of years ago, the prices of plots in the townships shot up to Rs 1,500 per sqft, but prices subsequently corrected due to subdued market,” property consultant Pratik Gandhi said.
The Super Corridor runs along 8 km from Airport Road to MR 10 with a proposed width of 600 m, excluding a 75 m wide road. The 2021 master plan permits 18 activities on the corridor, including corporate offices, malls and multiplexes. Mega projects, including a sports complex, a medical hub and a convention centre are proposed in the corridor.
The Indore chapter of Confederation of Real Estate Developers Association of India (CREDAI) is optimistic about the prospects in the region and expects prices to increase substantially in the coming years.
“Indore is a good market for end-users who will now get a slew of incentives thanks to the new government policy. The correction in real estate prices has also made this a good time to buy,” said Atul Jawar, joint secretary of CREDAI, Indore.
The state government is working on projects to improve infrastructure facility at the Super Corridor.