riteshmehta66

Hello All,

I am interested in buying a house / land in Vadodara - Gujarat with a dual purpose of investment and retirement planning.

I heard that East of NH-8 is attracting a lot of corporate investments in areas of Nimeta, Savli, Hanumanpura, Vaghodia etc. Heard DLF has purchased some 400+ acres of land there. Is the story TRUE ? or just rumours. How attractive is Vadodara in terms of investment ? Does it make sense to do real estate investment with a time horizon of 10-15 years ?

Is anyone aware of current ongoing rates per Sft / Vigha in areas like Hanumanpura, Ajwa, Nimeta, Saavli, Vaghodia ?

puni

If you want to go into Vadodara with a 10 to 15 years time period, then do it. With Anand and Surat fairly near by as well as the Highway connecting Ahmedabad and Vadodara, it is a fair investment to make. You have to consider that growth in Vadodara may not be as explosive as surrounding regions mentioned, especially SEZ oriented Surat and populated Ahmedabad.
There is growth towards Old Padra area inside Vadodara and that side, as well as other areas.
You could invest and rent out the building until you decide to retire and come there.

riteshmehta66

Thanks for your thoughts. I am of the opinion that Vadodara may score higher in attracting IT investments than Surat because of English speaking, working class educated work force is concerned due to many educational institutes. Surat has more of business class and trader community and mostly it is Gujarati Vernacular language predominant there. I think that way Vadodara is more cosmopolitan.

What are other viewers thoughts ?

puni

Regardless, even though you could be very correct, real estate projects require, usually or sometimes, a certain population number. If that is not reached, then there is a chance that the project(s) will not be followed up.

Ahemedabad should come before Vadodara... Nevertheless it would be perhaps futile to ponder guesses and better to seek facts. Contact a local broker.

kirpalsinh

Yes, you are very true now a days many Intl companies are coming in Ahmedabad. You can see now MNC's Hoarding in Ahmedabad.

and DLF also has purchsed land in Gandhinagar.


Regards,
Kirpal

deyk123

I feel that Vadodara would be a better investement proposition that Surat. One is that what others have pointed out the gentry staying in Vadodara and the other thing which I feel is that, Vadodara is still in the nacent stages of developement as compared to Surat which has seen a huge increase in the property and land prices in the last 1 year. Rates in Vadodara are much more resonable. Also if you are not planning to move to Vadodara immediately , invest in retail land only.

mohan

IT-ITeS exports from Vadodara touched $46 mn in '07 from $11 mn in '05.

The subprime crisis may have been a growth constraint for most of the IT and BPO companies in the country but it could prove to be a blessing in disguise for Gujarat. Having to cut down operation costs in the wake of the crisis, a number of companies are turning not only to Ahmedabad but also to Vadodara in a big way.

While the Ahmedabad-Gandhinagar cluster stands out as the premier IT-ITeS hub in the state with more than 360 companies including TCS, MphasiS, Aegis, Satyam and Patni, Vadodara could well be the next IT hub of the state.

The signs are already visible. As per the latest CII-KPMG report titled ‘Gujarat Riding on Indian Off-shoring Boom’, IT-ITeS exports from Vadodara have jumped from $11 million (approximately Rs 43 crore) in 2005 to $46 million (Rs 180 crore) in 2007 where both IT and ITeS exports have grown at almost the same pace. Moreover, the number of companies in the IT-ITeS segment has gone up from 77 in 2006 to 87 in 2007.

SEZs approval
The city has already received formal approval for three SEZs, which include Nipiam Infotech’s IT-ITeS SEZ on 220 acre, Suzlon Infrastructure’s 101 acre SEZ for hi-tech engineering products and GIDC’s 14 acre SEZ for the biotech industry.

Vadodara also houses L&T e-engineering, one of the highest ITeS exporters from the state, which is planning further expansion. Officials from the company said they would soon set up a ‘Knowledge City’ on 112 acres near Vadodara, for which a considerable amount of investment is expected.

The Knowledge City would consist of 11 buildings to be constructed in the first phase and house offices of L&T's e-Engineering Solutions, L&T Chiyoda and others. Other facilities include convention centre, employees’ hostel, residential colony, and food courts. prominent companies

Other prominent companies who have set up shop in the city include Fortune Infotech, dealing in audit and non-audit services, Global Consultants Inc, which is into reconciliation-based work, and IntelQ, an IT staffing and solution delivery as well as HR outsourcing and e-engineering company.

Though, the Ahmedabad-Gandhinagar cluster recorded IT-ITeS exports worth $82.1 million (approximately Rs 320 crore) in 2006-07, nearly double as compared with that of Vadodara, industry experts say real estate cost is a major advantage that Vadodara holds over other cities in the state.

Ahmedabad, on an average, offers 40 per cent lower rental rates as compared with tier I locations like Mumbai, Bangalore and the National Capital Region. Rentals on the Sarkhej-Gandhinagar highway, and Satellite areas where a couple of ITeS players are based, are Rs 25-30 per sft.

As compared with Ahmedabad, rentals in Vadodara are at least 10 per cent lower and 50 per cent cheaper than tier I locations. Lease rentals hover around Rs 20-25 per sft. Even Surat, whose IT exports touched just $1.2 million (approximately Rs 4.7 crore) in 2007, could prove to be a costlier proposition for companies. Lease rates in areas like Majur Gate and Ring road in Surat are in the range of Rs 30-40 per sft a month.

However, that hasn’t stopped Caliber Point, the BPO subsidiary of Hexaware Technologies from considering Surat along with Ahmedabad as the target locations for a pharma SEZ it is considering to set up in the state.

“We are looking at setting up an SEZ in the pharma sector by the last quarter of 2008. We propose to invest around Rs 40 crore for the same,” says Ashok Bildikar, president and executive director, Caliber Point.


- Business Standard
24th Feb, 2008

ashu

The real-estate prices have been rising in vadodara for the last one and a half years and now seem to have reached a plateau stage. When the all-india current trend for real-estate is towards somewhat declining stage, then how can vadodara give good return now?especially when there is not much to see in terms of growth , infrastructure, and there are instances of water-logging. Also, as there are better investment destinations available nearby, investing in Vadodara at this already increased stage might prove to be a costly affair, as prices might even start coming down now, and trends are already visible.
However, for retirement planning Vadodara might still be good but not anymore for getting return on investment.