Share
This is my first post on this forum, been a long time lurker (atleast 3 years from what I remember !)
Coming to Nasik, I feel at the moment the prices there are over inflated. Lets leave aside the largely emotional issues of weather, quality of vegetable etc - these dont affect Real estate prices. What does affect RE prices IMO are the number of high paying jobs available (or the future expectation of such), quality of educational institutions, importance as a trading hub etc.
Does the Nasik economy really have enough middle class jobs with decent incomes to sustain real estate prices like these ? I highly doubt it. There are very few large corporations in Nasik, Mahindra, Mico, VIP (?) the list stops very soon, and here too they have mostly manufacturing industry. Little to no IT, Telecom, presence. There are a few small IT companies in the city but thats it. There are 3-4 BPOs in the city which is hardly enough to fuel real estate growth. To add to this, a lot of industrial projects which were supposed to come up here have been cancelled or frozen. There is the Indiabulls SEZ that is coming up in Sinnar though, which may partly be the reason why Nasik Road and Sinnar prices have gone through the roof, but I dont expect too many high earning individuals to come there in comparison to PCMC or Hinjewadi.
Then why is the price suddenly sky rocketing ? Here's my guess : Investors from Mumbai and Pune, for whom real estate has already become unaffordable in their respective cities are starting to look at Nasik as an investment destination. So if and when prices in these cities start to rationalize, we may see some sort of sanity returning to the Nasik real estate market.
I was checking out recently, houses in College road now a days cost upwards of Rs 50 lakh rupees ! How many people in Nasik earn the kind of money to pay 30-40-50k as EMI each month ? The number is limited to the entrepreneurs and a tiny number of working professionals.
IMHO, you should hold off on investing in Nasik, till some fundamentals are in place there : Jobs, education, infrastructure.
Coming to Nasik, I feel at the moment the prices there are over inflated. Lets leave aside the largely emotional issues of weather, quality of vegetable etc - these dont affect Real estate prices. What does affect RE prices IMO are the number of high paying jobs available (or the future expectation of such), quality of educational institutions, importance as a trading hub etc.
Does the Nasik economy really have enough middle class jobs with decent incomes to sustain real estate prices like these ? I highly doubt it. There are very few large corporations in Nasik, Mahindra, Mico, VIP (?) the list stops very soon, and here too they have mostly manufacturing industry. Little to no IT, Telecom, presence. There are a few small IT companies in the city but thats it. There are 3-4 BPOs in the city which is hardly enough to fuel real estate growth. To add to this, a lot of industrial projects which were supposed to come up here have been cancelled or frozen. There is the Indiabulls SEZ that is coming up in Sinnar though, which may partly be the reason why Nasik Road and Sinnar prices have gone through the roof, but I dont expect too many high earning individuals to come there in comparison to PCMC or Hinjewadi.
Then why is the price suddenly sky rocketing ? Here's my guess : Investors from Mumbai and Pune, for whom real estate has already become unaffordable in their respective cities are starting to look at Nasik as an investment destination. So if and when prices in these cities start to rationalize, we may see some sort of sanity returning to the Nasik real estate market.
I was checking out recently, houses in College road now a days cost upwards of Rs 50 lakh rupees ! How many people in Nasik earn the kind of money to pay 30-40-50k as EMI each month ? The number is limited to the entrepreneurs and a tiny number of working professionals.
IMHO, you should hold off on investing in Nasik, till some fundamentals are in place there : Jobs, education, infrastructure.
Comment