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Do you know why MSMEs (micro, small and medium enterprises) are called the backbone of the Indian economy? MSMEs’ contribution to India’s growth is around 30%. According to reports, there are more than 11 crore people employed in the MSME sector, in India. MSMEs also boost the demand in the realty sector and support the development of infrastructure in a location. However, due to the Coronavirus lockdown, there are a large number of MSMEs facing financial distress. The government of India has come out with a rescue plan, for the revival and growth of the MSME sector. If MSMEs grow, then, India grows. They not only contribute to the supply side but are also demand creators. The stimulus package announced by the government, will boost the growth of real estate in the areas where MSMEs have a good foothold, as people involved in these MSMEs are expected to look for residential destinations that are developed in a manner that avoids the spread of COVID-19. Let us check out the announcements in the stimulus package, for the MSMEs.
The government has taken a very well-advised step, of redefining the MSMEs, thus, bringing more industries under its umbrella and enabling them to make use of the schemes specially designed to support the MSME sector.
Stimulus package for MSMEs
JK Arora, chairman of Tradologie, says, “Providing collateral-free loans to stressed MSMEs, the Rs 50,000-crore equity infusion and relaxation in TDS deduction, will give a fillip to the sector, which is already facing an acute financial crunch. E-market linkages for MSMEs, focus on fintech to enhance transactions and limiting global tenders to Rs 200 crores, will go a long way in providing a level playing field to the industry.”
This will boost the confidence of the existing industrialists and also make the manufacturing sector more attractive, for those looking for their entrepreneur ventures. Existing industries would look for attractive locations, where they can expand their manufacturing capacities too, thus, helping in fulfilling the very ambitious ‘Make In India’ project.
Experts believe that a stimulus boost to MSMEs, will also encourage the growth of the real estate sector, in the destinations where they are located. For example, if we look at the MSME cluster near Mumbai, then, the Ambernath-Badlapur belt has many MSME units and therefore, such places will emerge as big beneficiaries.
What type of location do MSMEs prefer?
“MSMEs prefer locations, where they easily get ancillary support. Some important factors that MSMEs consider, while selecting a location are mentioned below:
- 24-hour electricity supply and power backup as safety.
- Labour availability in the area.
- Ample space for manufacturing, processing and goods storage.
- Round-the-clock water supply.
- Robust logistic support around the MSME unit.
Ambernath/Badlapur is one such destination, where we already have a huge industrial development project, with ready possession industrial galas, along with residential townships that will generate big employment opportunities and boost economic growth in the area,” says Anoop Bhargava, director and CEO, Empire Centrum.
“Ambernath/Badlapur already are preferred residential destinations. For example, the project Empire Centrum not only boasts of future-ready industrial development but also has future-ready residential township, complementing each other. It is based on the ‘walk to work’ concept, offering superb quality homes with unmatched amenities and first-time concepts, such as a 21,000-plus-sq ft rooftop clubhouse and amenities, in the region. Other features of this project are:
- Lifestyle akin to living in a resort, within one’s budget.
- Homes equipped with small office spaces, which are in demand.
- One-of-a-kind three-tier security system introduced in the affordable housing segment.
Three things that make Ambernath an attractive destination for buying a home, are its employment prospects, affordability and proximity to Mumbai,” adds Jasmeet Singh Suri, head – sales, marketing and CRM, Empire Centrum.
Excellent infrastructure presence
The best part of an MSME cluster, is that it quickly develops the infrastructure, which also supports the growth of residential housing in that area. Ambernath comes under the Mumbai Metropolitan Region (MMR) and it falls under Thane district. There is excellent connectivity through rail and road transport to Mumbai, Pune and other parts of the country. The airport is also within a 50-km distance. There are several good schools, colleges and hospitals in the area, restaurants are present and malls are located within the city. Ambernath is not congested like metro cities and it offers all types of facilities that are present in metros.
Residential space for the workers within the MSME zone, is another factor that adds value to Ambernath as an ideal destination for MSMEs. The preferences of home buyers who work in MSMEs, are expected to change post-COVID-19. The home buying criteria may change, in-sync with COVID-19 needs and therefore, Ambernath may emerge as an attractive residential destination for people working in the MSMEs, in the near future.
Ambernath to emerge as an attractive residential destination post-COVID-19
People usually prefer to live close to a place where they get employment, have safety and all types of social and infrastructure support. However, post-COVID-19, there are a large number of people who may prefer to work from home. The COVID-19 pandemic has added more factors, like health, hygiene and social distancing, to the list of home buyers’ preferences.
With a stimulus boost, more and more people will get employed in MSMEs and they will look for homes at affordable prices. Property prices in Ambernath-Badlapur are quite affordable, while houses are bigger in comparison to the average property size in Mumbai and there is ample space to maintain social distancing all around the location.
With the announcement of the stimulus for MSMEs, Ambernath is expected to get huge traction from entrepreneurs and job seekers and the demand for commercial and residential spaces, is expected to surge in the near future.
Why buying a home in Ambernath is even more attractive post-COVID-19?