Maharashtra - Leading the Real Estate Boom

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Maharashtra (Labelled India’s “Power House”) is one of India’s most industrialized states. Its immense contribution to the Indian economy amounts to a fourth of the gross value of Indian industry, and 78.8% of the state’s GDP flows from the secondary and tertiary sector.Spearheading the industrialization of India, Maharashtra has set trends in the development of real estate in the country. Economic progress has led to aggressive commercial and residential property development in Mumbai, Navi Mumbai, Pune, Nagpur, Nashik, Jalgaon and Aurangabad. New industrial townships have been developed by the Maharashtra Industrial Development Corporation at Raigad, Thane, Talegaon and Hinjewadi-Man in Pune, Shendre in Aurangabad, Additional Latur, Nandgaon Peth in Amravati, Additional Yavatmal, Tadali in Chandrapur, Butibori in Nagpur, Additional Sinnar in Nashik and Nardhana in Dhule, which has given a fillip to commercial and residential property development in these districts.

India’s most successful Export Processing Zone, SEEPZ in Mumbai was set up in the 1980’s, followed by the City and Industrial Development Corporation (CIDCO) at Dronagiri, near the Jawaharlal Nehru Port. Foreign direct investment in Maharashtra has been the second highest in the country, with a share of 21% Rs. 24,545 crore from till September 2006.

The IT and biotechnology industry took over from the once flourishing textile industry in Maharashtra, and along with growth in the automobile, electronics, floriculture, and film industry, the real estate market grew from strength to strength. Investors are confident of making investments in property in Maharashtra, given the futuristic and visionary policies of the state government.

Tourism too has received an impetus with the investment in infrastructure. The state enjoys a scenic countryside with diverse geographical features – the unspoilt beaches, the rugged Western Ghats and the gentle Sahyadris are home to a rich heritage of temples, forts and caves. Mumbai, the Ajanta and Ellora Caves, Lonavala and Khandala, Raigad, Matheran, Alibag, Ganapatiphule, Murud-Janjira, Panchgani, and Mahabaleshwar are popular weekend getaways accessible by an excellent road network.

Real Estate Development in Maharashtra

Click Map of Maharashtra to Enlarge View

The real estate market in Maharashtra has thrived on its industrial growth, developing in every segment - commercial spaces, residential apartments and condominiums, retail malls, hotels or special economic zones. The celebrated real estate market of Mumbai is known for property prices that rival the leading cities of the world.

Maharashtra is home to the most expensive residential and commercial properties in the country, concentrated in Mumbai, Navi Mumbai and Pune. All three cities have a mature property market, with high end residential apartments, commercial projects, luxury hotels and malls.

Residential and commercial property rates in Navi Mumbai have soared ever since the Special Economic Zone and the Greenfield airport project in Panvel were announced. It is no longer a city living in Mumbai’s shadow, with its fair share of premium residential properties, glitzy malls and multiplexes, hotels and large commercial spaces.

In Pune, property prices have appreciated between 10 to as much as 70% in Hinjewadi, Baner, Kharadi, Kalyani Nagar, Wakad, Pimple-Nilakh and Pimpri-Chinchwad.

Talegaon on the Mumbai- Pune expressway is also seeing fast paced development, and property developers are taking up large projects in view of Indian corporates and multinationals planning to set up manufacturing facilities here. Rates of residential property are currently as low as Rs.900 to Rs.1500 per sq. metre and Rs. 20 to Rs. 70 lakh per acre for industrial plots.

Jones Lang LaSalle, leading property consultants, have forecast a healthy real estate market in Nagpur as it becomes a favourite offshoring destination for IT companies. Areas near the Butibori Industrial Estate and the Amravati and Wardha Roads have caught the investor’s fancy and property rates have soared since 2005.

Accelerated commercial and residential property development is expected in Nashik, which inaugurated its first IT hub in January 2007. Construction activities are on the upswing, and being undertaken on the lines of Mumbai and Bangalore.

The Government notified 7 Special Economic Zones for Maharashtra in January 2007. These are: the Serum Bio-Pharma Park in Pune, the EON Kharadi Infrastructure Private limited in Haveli, Pune, MIDC in Latur, Aurangabad and Nanded, Wipro in Hindawadi, Pune, and Royal Palms in Aarey Colony, Mumbai.

Maharashtra will remain the investor’s safest bet, as the industrial climate rests on India’s most qualified, professional and committed workforce.

For more information on real estate trends in Maharashtra’s upcoming cities, do refer to the chart below: