Real Estate Investor Insight
Corporate/Developer/Businessmen and Individual The Real Estate Residential Sector has been stagnant for the last couple of years so far as pricing is concerned reasons are many and we have already talked about them. Today we wish to talk about Business cum Investment opportunities both for Corporates as well as for individual investors. I sense that one of the biggest real estate opportunities in India for the next couple of years is in the building and leasing of WAREHOUSES.
WAREHOUSE is the need of the day and it will take a couple of years to fulfil the demand. Reasoning:- When we look towards the west, we see Walmart, Amazon, Home Depot, etc buying in bulk and stacking it into warehouses at strategic locations to feed the consumer. India has seen a major behaviour change in terms of consumer buying. Amazon, Flipkart, and others are following the well-established business model and hence the need to Buy in Bulk and Store In Bulk.
The basic requirement for WAREHOUSING is:
1. Infrastructure
2. Transport
3. Universal Taxation
4. Warehouse
We have seen a major development in all the above-said parameters. Airports, Waterways and Especially the Surface: Road Transport – Expressways have connected India like never before. GST: Goods And Service Tax: One Nation One Tax has made commodity pricing similar across the nation.
WAREHOUSE is the only way going forward. Don’t miss the opportunity! For the individual investor, I identified one region in Delhi NCR where we expect to see at least 15-20 % growth for at least the next 3-5 years: the region from Kundli to Murthal on National Highway 44 (earlier NH1 or G T Road) The completion of KMP and KGP Expressways have connected Gurgaon, Ghaziabad to the relatively very expensive regions with Kundli. North Delhi is 20 minutes from Kundli and the prices in North Delhi are obnoxious.
The region has seen Industrial Parks by HSIDC mushrooms. Excellent Educational Facilities like Jindal Law College, Ashoka University, SRM University, and Schools like Modern School, and Delhi Public School are all functional catering to the residents of the region. Shopping Malls have come and many developers have handed over residential complexes. The prices compared to North Delhi, Ghaziabad, and Gurgaon are just a fraction and we will see a major upswing.
I believe that this is an excellent investment opportunity.