Real Estate: India as strong investment destinations for investors

NEW DELHI: Cushman & Wakefield has identified 17 new corridors in India as strong investment destinations for investors with different risk appe-tites. According to India Gaining Momentum report, the real estate investment report 2007 prepared by Cushman & Wakefield along with Global Real Estate Institute (GRI), Hinjewadi, Manesar, GST near Chennai airport, Sriperembudur, Shamshabad, Devanahalli, Greater Noida, Panvel and Virar, Rajarhat, Thane, Kokapet (Hyderabad), Bidadi (Karnataka), Chakan, Kharadi (Pune) Bantala and Tumkur Road are the 17 corridors that reflect high investment potential. "As India enters the next phase of real estate growth, the exploration of suburban and peripheral developments of major cities as cost saving and risk diversification measures are emerging as vital initiators for analysing the potential investment opportunity within these emerging corridors," the report said. "Overburdened infrastructure, rising real estate and operational costs, and limited availability of large land parcels have driven corporates and developers to seek alternate locations with their periphery. These emerging corridors are extensions of Tier I and Tier II cities that stand to gain from existing talent pool and reap benefits from pre-planned infrastructure," Cushman & Wakefield deputy MDSanjay Dutt said. In the report, the corridors were rated on three parameters: sustainability, momentum and economic environment. "The grading of the locations depicts the scale of opportunities within these emerging corridors, which would allow investors to gauge their location preference according to their risk appetite," said Mr Dutt.
Locations that score high on sustainability exemplify the strength of their physical and social infrastruc-ture, real estate development in the adjoining markets and the nature of economic activity present with the broader location. These corridors will have limited exposure to risk and will bring assured returns due to demand dynamics and readiness of infrastructure. Therefore, long-term sustainable corridors would emerge as preferred choice for in-vestment from the risk minimisation perspective.