When it comes to real estate, it is often said that the important factors are ‘location, location and location’, says Pranay Vakil, chairman of Praron Consultancy. “However, if you have the ability to spot an upcoming location correctly, you can hit the jackpot. The appreciation in prices that an upcoming or future location can give you, is no match for an established location. I think Bhiwadi falls in this future location,” maintains Vakil.
For investors, Bhiwadi has provided exceptional returns on investment, at a time when there has been a correction, in many of the established markets in the neighbourhood.
Properties that were available at Rs 1,700 per sq ft in 2007, in Bhiwadi, appreciated to Rs 2,200 in 2012 and by 2016, it further appreciated to Rs 3,100 per sq ft. With several infrastructure projects in the pipeline, including the Delhi-Mumbai Industrial Corridor (DMIC, which will pass through Rewari, 25 kms away from Bhiwadi), analysts are expecting another rally in the property market.
Moreover, if the economy improves and boosts overall demand, Bhiwadi could turn into a goldmine for the investors who are entering now.
Bhiwadi’s property market has several advantages – it is strategically located, has a supportive industrial climate and is affordable owing to cheaper land cost. Neeraj Bansal, partner – real estate and construction, at KPMG India, states that the location has a good connectivity, with the eight-lane road to Gurgaon on one side and Jaipur on the other side. Other factors that make it interesting for investors, are low property rates, new infrastructure, low cost of living, low population density and low pollution levels.
“Bhiwadi is home to a large number of industrial units and enjoys proximity to all major towns of the National Capital Region (NCR). Being part of the 2021, National Capital Region Plan, Bhiwadi has of late, witnessed increased residential and commercial activity. Many real estate players are launching projects here. The residential sector’s contribution to the growth of Bhiwadi is expected to increase in the near future,” says Bansal.
No land disputes
Vivek Singh, a real estate professional who has worked with a couple of developers in the region, points out that Bhiwadi also remained unaffected by the land disputes that plagued Noida Extension, the Yamuna Expressway and other parts of Ghaziabad. This prompted many budget home seekers, investors and industries, to shift to this safer micro-market. Moreover, project execution has been faster here, he says.
“The Rajasthan State Industrial Development and Investment Corporation (RIICO) is providing excellent support, vis-à-vis infrastructure, water and power, whereas, even in the neighbouring industrial township of Manesar, bottlenecks remain. While Bhiwadi is attracting more and more industries, even the aspiration level of the local population has gone up and that spells well, for the overall economic growth and property market of the region,” elaborates Singh.
While there is no denying that Bhiwadi is no longer perceived as a poor cousin of Gurgaon and Manesar, the moot question now, is whether the real estate market in Bhiwadi can compete with those in New Gurgaon or Manesar. The answer, could well lie in the pace at which connectivity and infrastructure improve.
- Bhiwadi is one of the safest markets in the NCR, as it has managed to avoid land-related controversies.
- Small ticket size ensures easy exit from the market.
- Appreciation since 2007, has been almost 100% despite the slowdown in real estate.
- Property prices are still the lowest in the NCR.
(The writer is CEO, Track2Realty)