2023_Top_Investment_Corridors_in_India

Advisory Services | India | September 2023
Top
Investment
Corridors in
India
TOP INVESTMENT CORRIDORS IN INDIA | 1

Research Methodology
The study was conducted by the Pan-India Advisory Services team, Colliers India.
The Colliers research data bank and secondary research were the methods utilized
for the in-depth market research to determine the best performing cities. In
addition, a random survey was conducted to look for investment opportunities
as part of the market analysis for the investment corridors. The team then did a
thorough research that showcases the top land investment prospects nationwide.
2 | TOP INVESTMENT CORRIDORS IN INDIA

Executive
Summary
Swapnil Anil
Executive Director & Head
Advisory Services, Colliers, India
India is gaining global recognition and evolving as a
destination for international investments, owing to the
growing entrepreneurial base, young population, skilled
labor force and rapid infrastructure developments
across the country. As a result, micro markets close to
financial and industrial hubs have grown, and they are
anticipated to gain more traction in the coming years.
Holding Real Estate in these micro-markets is the key to
securing and enhancing wealth for the savvy investors.
Often known as the stabilizer in Investment Portfolios,

Real Estate is one of the most underestimated assets.
While equity, debt investments, and banking are touted
to be the most rewarding investment avenues, subject
to risk appetites, even in its most basic form like land,
real estate investments at the right time and place have
always proven to be a long-term game changer.
Colliers India’s latest report, “Top Investment

Corridors in India” intends to help investors learn
about the upcoming micro-markets / corridors that can
bring a pivotal shift to their financial growth journey.
Moving beyond need-based investments, land can help
grow and multiply wealth, and prove to be a source of
steady income when monetized right. The industrial
growth, infrastructure appraisal, government impetus,
and tourism development are some of the defining
parameters in the report.

Key
Findings
The benefits of investing in Real Estate are
numerous. With well-chosen assets, investors can Investing in land is like unleashing
enjoy predictable cash flow, excellent returns, tax a gold mine in the coming years.
advantages, and diversification—and it’s possible
to leverage Real Estate to build wealth. Real Estate Learning to monetize land for
investors generate income through rental income, better yield and returns will prove
appreciation, and profits generated by business beneficial in making this investment
activities that depend on the property. work for you
Emerging micro markets in India that are extensions of the real estate markets in metropolitan cities have been
recognized as crucial investment micro-market / corridors for land investments.
Investment Corridors
MUMBAI
5x
Neral - Matheran
Ranking of the top 5 corridors

AHMEDABAD
3.5x
Sanad – Nal Sarovar
CHENNAI
3.5x
ECR – Injambakkam - Kovalam
HYDERABAD
3x
Kompally - Medchal – Shamirpet
KOLKATA
2.5x
New Town- Rajarhat
Investing in land & monetizing it in rental format fetches

Real Estate 10 Times higher yield than ready apartments.
Investments beyond (Up to 15% for rental yield holiday homes)
primary needs are
a beneficial wealth Capital appreciation 5x wealth generation
creating tool Expected return over next 10 years in land investments
in these corridors

How could one monetize
a land investment ?
The demand for land investments has never been higher than it is right now. As a collateral impact of Covid-19,
weekend homes or a place to escape the bustle of the city are expanding rapidly.
Rental opportunities as a Staycations
Building weekend home / by listing the property on various rental formats
Second home / Retirement home / etc. like: Airbnb; makemytrip; goibibo, etc.
Investing in land Investment Returns
Growth Value over the years

Higher Capital Appreciation + Higher Rental Yield
VS
Minimum Less Low Low High
Land Development Maintenance Investments
Requirement time Cost Returns
It is possible to target a wider investment base, making what was once a luxury and a
dream more attainable and affordable. The shifting trends in home typology reflects that
instead of magnificent villas, individuals are now looking for better and faster options like
precasted cabins

01 Introduction
Content
Key Developing
02 Cities in India
Delineating Individual
03 cities & their investment
hot-spot
a) Mumbai
b) Ahmedabad
c) Chennai
d) Hyderabad
e) Kolkata

Summarizing Top 5
04 Investment Corridors
in India
Emerging Investment
05 Opportunity
Way Forward: Method

06 to monetize land as
rental income

Real Estate Investment :
Major Intergenerational
Wealth Creating Tool
Investments today are not just a need but are oriented towards creating wealth
People today seek to invest their money and develop several sources of income independent of their current
employment. It is crucial for an investor to comprehend their selection and pick the right one. If one were to
invest in land, there is a huge range of potential for monetization. The investor could just hold the land for long-
term, build a structure on it to lease out, have a holiday property and can earn payouts from there too.
Returns in key formats of Investment
Investments in Real Estate

are not erratic and don’t
aim for immediate profits.
Land in particular is a long-
term growth tool which can
surpass inflation rates when
timed right

Real estate demand Why Better
Real Estate
Despite high inflation rates, rising interest rates, Options
uncertain economic conditions and global market
slowdown, 2022 witnessed robust growth in core real Is Linkeable?
estate assets. As the impact of economic headwinds Rent

continue, we expect overall demand to see some
moderation during 2023 in certain sectors such as Returns
the commercial office segment, affordable and mid- Value appreciates
housing. However, the Indian economy continues to Are Assured with rise in demand
be resilient, supporting growth across sectors such as

data centers, industrial and warehousing, high-end Appreciation
and luxury housing, and second homes.
Growth
Assured Return
Growth Further
Ranking for real estate market in key cities of India

Chennai
Ahmedabad
Mumbai
Hyderabad
Delhi
Kolkata
Pune
Indore
Bangalore
Ranking based on best Performing cities

Identifying growth
triggering cities of India
Several key factors are taken into consideration while delineating cities - including employment, infrastructural
development, regional connectivity, accessibility to healthcare and educational facilities, safety and security,
environmental sustainability, good governance, and socio-political stability.
Mumbai - The financial capital, economic powerhouse,

01 and industrial hub of India. The business hub, with an
established media & entertainment industry. Having one
of the most vibrant & dynamic real estate market.
Hyderabad - The booming IT hub along with major Indian
04 manufacturing, research, and financial institutions getting
established, such as the Bharat Heavy Electricals Limited
(BHEL), the National Geophysical Research Institute, etc.
Ahmedabad
Kolkata
Mumbai
Hyderabad
Ahmadabad - India’s first International Financial Services

05 Center (IFSC) has been set up at Gujarat International
Financial Tec-City (GIFT City)
Chennai - Detroit of India: accounts for 30 percent of

Chennai 06 the country’s automotive sector and 40 percent of auto
components.
Kolkata - Emerged as one of the major warehousing and

07 logistics markets. Major industrial lobbies, such as the
FICCI, and CII established their regional offices
Ranking based on Population census 2011

Factors that influence the growth of a city
An increase in capital expenditure on infrastructure

investment by 33 percent, i.e., INR 10 lakh crore
for 2023–24. Growth in real estate is expected to
elevate in line with the strengthening of regional
infrastructure
-Budget 2023

Mumbai
The fastest growing city of India, the city that never stops
Mumbai, being the financial capital of India, has the The city’s real estate is categorized into various
highest value for all types of Real Estate properties. regions and localities, each with its own price
Mumbai’s Real Estate is undoubtedly exorbitant and range and market dynamics. In recent years, the
offers a plethora of opportunities for Real estate state government have been working on various
investments. The Mumbai’s real estate market has infrastructure projects to improve connectivity and
expanded geographically through the years as ease congestion in Mumbai.
communities have expanded and several locations
have gained importance. Therefore, there are more Land: As the city is expanding, the locations such
alternatives to invest in the city’s more expensive as Vasai Virar, Bhiwandi, Neral-Matheran, are the
districts. key hot-spots, led by availability of Non-Agricultural
large land parcels along key upcoming infrastructure
Real Estate Market developments and presence of branded developers.
Mumbai’s real estate market is characterized by Land investment has higher return compared to
high property prices, limited land availability, and other asset classes where the average ticket sizes
the growing population, which creates significant are high with minimal returns.
demand for housing and commercial spaces.
Infrastructure development is the primary driver of city growth

Multiple economic nodes Affordability
Previously, Mumbai was the central hub for many The suburbs and the periphery are currently the
businesses. Now, these hubs are centralized areas that are taken into consideration in terms
in multiple places. Thane, Airoli, Navi Mumbai, of affordability due to the increasing prices in the
Bhiwandi, etc. centre metropolis and land unavailability.

Upcoming Infrastructure Projects
• Mumbai Trans Harbour Link

22km link from connecting
Mumbai to Navi Mumbai.
• Navi Mumbai International
Airport (NMIA)
• JNPT Port Development and
SEZ developments
• Ahmedabad-Mumbai Bullet
Train Project
• Panvel-Matheran Railway Line
Proposed Infrastructure Projects
• Proposed coastal road

connecting North Mumbai to
South Mumbai
• Proposed Mulund Link road
connecting eastern and
western suburbs
• The 126 km long Virar-Alibuag
Multi-Modal Corridor
Key anchor nodes Growth Direction
Secondary nodes Upcoming markets
Weightage as per the triggers that impact appreciation of the market
The Neral-Matheran corridor is more appealing to investors than other areas of the city due
to the presence of key developers with sizable residential projects, proximity to the city centre,
and well-established social amenities with an advantage of nature and pleasant climate

Neral - Matheran
Neral- Matheran is a part of MMR, the micro
Neral-Matheran provides an excellent
market is gaining attraction because of its unique scenic experience, emersed in nature away
natural geographic setting. It is a most important from the hustle & bustle of the congested
railroad junction, with trains arriving from Mumbai urban setup, making it a perfect location
and Pune to the nearby and very treasured hill for a weekend getaway
station of Matheran.
• Navi Mumbai Airport Influence Notified Area

(NAINA) & its surrounding region is expected to Connectivity
see incredible growth as a modern city due to
its planned development. • Nearest airport - Navi Mumbai International Airport
(NMIA) set to open soon.
• New economic hubs like Thane, Navi Mumbai • The State Highway connects Neral to Karjat, NH4,
SEZ, Industries in Badlapur & Ambernath, Panvel and Badlapur.
increase footfall towards the outskirts of the • The nearest railway station is the Neral Railway
Mumbai Station
• It lies close to Shelu Railway and the Badlapur –
• Neral-Matheran being a most admired tourist Khopoli Highway.
destination, hence the hotel and tourism • MSRTC & western railway provides fast connectivity
sectors account for the majority of the local to Mumbai and Pune.
hotel management industry’s revenue. • Upcoming Trans Harbour Link (MTHL)
Key Attractions to the market

• Matheran ESZ: A no - vehicle zone. A region where the noise and bustle of the city disappeared. The harsh
blare of honking cars was replaced by the sound of the birds and the sounds of hooves. The pollution
replaced by the clean crisp air of the forests.
• Bhimashankar Wildlife Sanctuary : Home to large number of endemic species.
• ND Flim studio: Bollywood theme park & a shooting location.
• Other tourism spots in and in vicinity of the Neral-Matheran area are Blue Bulb, Neral–Matheran Toy Train,
Rambag Point, Panorama Point, Hart Point, etc
• Other impacting influencers are: Panvel Bhimashankar Road connector; Proposed Jio University; Neral
station & State highway connector
The part of the city that serves as a peaceful holiday location
Source : Colliers

Average YoY Capital Appreciation
5X Expected returns over next

10 years in land investments
Why this is a preferred Available Investment options

Investment Location ? in the Market
Price Villa/
Apartment Commercial NA Land
(INR Cr.) Bungalow
0 - 0.5
0.5 - 1
1-2
2-4
>4
High Low
Source : Colliers
Neral – the foothills of Matheran

has been looked up as an
opportunity for land investment to
build holiday homes which also are
income generators in the form of
home-stays or short-term rentals

Ahmedabad
Home to India’s first international financial services center.
The City is home to more than seven million as the city is expanding towards Sanand and
people, making it the fifth most populous and Gandhinagar. Industrial Real Estate is significant
the seventh largest city in the country. The in Ahmedabad for investment in land as well, with
Gujarat government has worked to establish the several industrial zones and estates accommodating
Ahmedabad-Gandhinagar stretch as a fintech-city manufacturing and other industrial activities.
called the ‘Gujarat International Finance Tec-City’ Commercial real estate in Ahmedabad has also seen
or GIFT city – India’s first International Financial substantial growth, with various office spaces, retail
Services Center (IFSC). Ahmedabad is the nucleus of outlets, and malls being developed in different parts
the Gujarat industrial region and is a base for some of the city.
of the biggest industrial names as well as several
commercial and educational institutions of global Land: The city centre has limited land parcels under
importance. educational or industrial use. While the city limits are
expanding-plotted development, affordable housing
Real Estate Market and commercial are the core developments along
Residential Real Estate in Ahmedabad includes the growth corridors of the city. Investing in land
apartments, villas, and independent houses, and within these growth corridors could expect higher
people are investing in land for weekend homes returns.
Key growth drivers for the expansion of City

Residential market Industrial growth
The Real Estate market in Ahmedabad has been Ahmedabad District is the largest inland industrial
dynamic and promising. With a thriving economy center in western India. It provides a manufacturing
and rapid urbanization, the city has witnessed base for industries such as chemical, textiles,
steady growth in the real estate sector. Residential agriculture, and food processing.
properties continue dominating the market, catering
to the rising demand for affordable and luxurious
apartments.

Proposed Transit Infrastructure Projects
Secondary nodes Upcoming markets
• GIFT City Gandhinagar
• Ahmedabad-Mumbai Bullet Train Project
• Ahmedabad-Dholera Expressway
• Mandal-Behcaraji and Dholera Special Investment Regions
• Ahmedabad Metro Phase 2
• Western Dedicated Freight Corridor
• Delhi-Mumbai Industrial Corridor
• Delhi-Ahmedabad High-Speed Rail Corridor
• Tharad–Ahmedabad Expressway
Home to global auto giants, Sanand-Nalsarovar has become a thriving auto hub of the Western
India and one of the most promising avenues of investments. The corridor enjoys a strategic
location on the Delhi-Mumbai Industrial corridor

Sanand – Nal Sarovar
Sanand-Nal Sarovar is strategically located in
Sanand - Nal Sarovar’s serene
Ahmedabad. It is well-connected to major cities and surroundings, and the presence of the
transportation hubs, including the Ahmedabad- Nal Sarovar Bird Sanctuary, make it an
Dholera Expressway and Ahmedabad’s proposed attractive destination for leisure and
third-ring road, enhancing accessibility and weekend getaways
convenience for residents and employment.
Sanand has emerged as a prominent industrial Connectivity

hub, attracting significant companies and
industries. The area is known for the Tata Nano • Nearest airport: Sardar Vallabhbhai Patel International
plant and the Sanand GIDC. Airport
• The State Highway – GJ SH-135 connects Nal Sarovar to
Due to the geographical setting, the huge natural Sanand and GJ SH-17 connects Sanand to Ahmedabad.
lake, and spread vegetation, the region as been • Proposed third Ring Road of Ahmedabad will add
an attraction as a weekend property market for more connectivity.
people from Ahmedabad. • The nearest railway station is Sanand Railway Station.

• Due to the presence of the natural lake, it is a seasonal stoppage for migratory birds, which is a gem for bird
watchers, professional ornithologists, and is a serene gateway rest of the year.
• Sanand-Nalsarovar’s popularity as a tourist destination has been growing steadily. The presence of the lake,
wildlife, and bird sanctuary make it an attractive place for nature lovers and Eco-tourists.
• Sanand-Nalsarovar’s proximity to Ahmedabad and its pleasant environment makes it an ideal location for
investors looking for a second home or weekend gateway.
The part of the city that serves as a peaceful holiday location.
Towards Becharaji
Towards Rajkot Towards Dholera
Source : Colliers

3.5X Expected returns over next


Price Villa/
(INR Cr.) Bungalow
0 - 0.5
0.5 - 1
1-2
2-4
>4
High Low
Source : Colliers
The location has been developed

as golf clubs, resorts and weekend
homes for the people from
Ahmedabad & Gandhinagar

Chennai
Chennai is often referred to as “the Detroit of India” since it
produces 40% of the nation’s auto parts and 30% of the nation’s
automotive industry.
The strategic location, robust infrastructure, and slowdown, changes in government regulations,
bustling economy have undoubtedly made it a etc. With its year-round pleasant temperatures
cosmopolitan city. Given the diversified economic and presence of coastal beach, Chennai is a dream
base, the demand for real estate across asset destination for many investors and residents. The
types has grown rapidly over the years. The growth city is home to Tidal Park, Asia’s largest IT park,
of manufacturing and IT/ITeS sectors has led to making it a popular location for those working in the
increase in the migration of young talents towards Tech sector for investment in residential sector.
the city. The resultant rise in the city’s population
and expanding urban sprawl drove residential Land: The large availability of land parcels along
demand, especially in the suburban and peripheral Old Madras Road (IT hub) and East Coast Road
locations of South and West Chennai. (ECR) with established social & upcoming physical
infrastructure and other amenities are attracting
Real Estate Market investors/buyers to invest in land and real estate
The Chennai real estate market has been greatly properties at various price points to gain higher
impacted by various factors, such as the economic returns.

Multifarious economic activity
The city has made rapid strides in pursuing
economic development over time. The urban
sprawl expanded by the growth of office sector,
with increasing IT / ITeS firms in South Chennai and
buoyant Industrial activity in West Chennai.
Affordability moving towards suburbs

As the urban sprawl continued and capital values
in core areas escalated, the peripherals started
witnessing increased residential activity. The
majority of this activity moved from the urban
core to the suburbs, and subsequently to the
peripheral areas.

Upcoming & Proposed Transit Infrastructure Projects
• Chennai Airport Expansion (Phase II)
• Proposed Three Metro Rail lines across key corridors Secondary nodes Upcoming markets
• Chennai Port-Maduravoyal Expressway

• Expansion of ECR Road
• Proposed Chennai Peripheral Ring Road (Phase II)
• Madhya kailash Flyover
• Multi-modal Logistics Park in Chennai-Mappedu
• FinTech City at Nandambakkam and Kavanur
• Chennai’s Second airport at Parandur
Be it for investment purposes or building a villa along ECR, one is sure to enjoy remarkable
returns and appreciation because of the area’s rapid real estate development in the recent
times, led by proximity to the city centre and developed IT corridor (OMR)

ECR : Injambakkam - Kovalam
East Coast Road (ECR), is one of the rapidly

ECR located along the coastal lane presents
developing areas of Chennai and is located very an excellent example of a bustling road
close to the industrial zones and the IT corridor stretch studded with beautiful long beach
such as OMR in Chennai. The demand for properties views and serves as a perfect spot for
along ECR has been increasing, led by its strategic unwinding and recreation
location along the sea and proximity to key
destinations.
Connectivity
• ECR is one such area of Chennai which boasts
leading social amenities and developed • Nearest airport: Chennai International Airport
infrastructure along with proximity to • The ECR Highway connect Thiruvanmiyur,
employment avenues such as IT parks and SEZs. Sholinganallur, Palavakkam, and Mahabalipuram
• Connectivity, along with access to all world-class • The nearest railway station is the Perungudi Railway
social infrastructure and competitive property Station
rates is a major attractions. • The road passes by scenic beaches of the Bay of
• Demand for residential spaces will continue to Bengal up to Puducherry and finally Cuddalore.
rise and so, it also makes for a good investment • The Guindy Metro Station and the St Thomas Mount
option. Metro Station lie at a close proximity.

• ECR is home to numerous important heritage sites that attract visitors from all around the world with an
advantage of sea along the corridor.
• Key Tourists destinations include Cholamandal Artist’s Village, Dakshinachithra, Muttukadu Boat house,
Nettukuppam beach.
• With a unique location facing the sea, ECR offers a serene panoramic ocean view from the user adobe.
• Developers are capitalizing on this opportunity by developing various projects such as resorts, Villas, plotted
development, making them ideal assets for investors.
A strategic location with Serene panoramic sea for weekend/holiday retreat
Towards Chennai CBD
Source : Colliers



Price Villa/
(INR Cr.) Bungalow
0 - 0.5
0.5 - 1
1-2
2-4
>4
High Low
Source : Colliers
Second homes in ECR are

considered as best investments
plans for income generators
through short-term rentals

Hyderabad
The country’s pharmaceutical capital and “Genome Valley of India’
and establishing its character as IT/ITeS hub of India
Industrial-friendly policies of the pro-development infrastructure development.

government over the last few decades has helped The demand for land in Hyderabad has been
Hyderabad emerge as one of the top cities in India, consistently high, especially in well-established and
attracting significant global investments. Moreover, IT- emerging residential areas. With the city’s population
hub for start-ups, commencement of first phase of the growth and increasing urbanization, there has been a
metro project, growing retail spaces in the city and the surge in the demand for plots to build homes.
success of Outer Ring Road (ORR) in easing the traffic
snarls are few other growth drivers for the overall Land: The Outer Ring Road (ORR) in Hyderabad is
spurt in real estate activity over the last few years. a critical component of the city’s evolution with the
vast availability of land parcels leading to a significant
Real Estate Market land investment opportunity. This has improved
The government has taken several initiatives to Hyderabad’s economic environment, reduced urban
promote the real estate sector, including streamlining congestion, and encouraged sustainable suburban
the approval processes for real estate projects, development.
providing incentives to developers, and investing in

Infrastructure: Impetus for RE growth Affordability moving towards suburbs
The Nehru Outer Ring Road bolstered the city’s real Availability of land and large base of junior-to-mid level
estate sectors by opening up large land parcels with employees in the city will trigger demand for housing
high development potential, which enabled the projects in the city. The western submarket is the
growth of commercial & residential suburbs in the hotspot of residential investments in the city, followed
western corridor of Hyderabad. by the northern and eastern residential submarkets.

Upcoming & Proposed Transit Infrastructure Projects Key anchor nodes Growth Direction
• Strategic Road Development Plan to boost road infrastructure Secondary nodes Upcoming markets
• Hyderabad Regional Ring Road
• Hyderabad Metro Rail Phase II
• Mumbai – Hyderabad High-speed Rail Project
• Elevated Bus Rapid Transport System
• Proposed energy park in Mahabubnagar
• Proposed Industrial corridors in along Nagpur, Delhi- Hyderabad Highway
• Proposed Brownfield IT parks
• Pharma City in Mucherla
The corridor is well known for its lush green environment, excellent physical infrastructure,
operational and upcoming commercial hubs are some of the key factors for investors to
capitalize the opportunity and uphold the investments in the region

Kompally - Medchal – Shamirpet
Kompally - Medchal - Shamirpet is a fast-growing

Kompally-Medchal-Shamirpet are now real
residential location, situated at Northern suburb estate hot-spots due to various advantageous
Zone of Hyderabad. Being in proximity to the factors such as location, high potential
mainstream areas, the micro market has gained a growth of capital, and the availability of a
larger traction in recent days for its infrastructural wide range of housing options
development, which created a boom in the real
estate market.
Connectivity
• North-western Hyderabad has evolved as the
largest employment hub of the city leading • Nearest airport: Rajiv Gandhi International Airport
to high residential activity in and around its • The nearest railway station: Medchal & Gundla
periphery. Also, with major micro markets being Pochampally Railway Station
saturated over the years, several other areas near • These micro markets are well connected though
to prominent ones are seeing spill-over demand. Nehru Outer Ring Road to other key destinations of
• Kompally, Medchal and Shamirpet are few most the city as well as International Airport.
admired destination for home buyers seeking an • The upcoming Kandlakoya IT Park is in proximity
affordable to luxurious lifestyle at various price to the micro-market and are likely to impact the
points. property prices in the short term.

• The micro market is one of the esteemed destinations in the outskirts of the city with its stunning
landscapes, rich culture, and diverse wildlife.
• The corridor includes unmatched living experience amid excellent social infrastructure, including renowned
school, hospitals and shopping complexes in the midst of nature.
• These corridors are considered as a luxury weekend/holiday home destination, led by the development of
premium wellness and nature resorts and gated communities with wide amenities for the travellers
Shift in supply towards Premium Second Homes, led by proximity to key IT
Towards Chennai CBD
Source : Colliers

3X Expected returns over next


Price Villa/
(INR Cr.) Bungalow
0 - 0.5
0.5 - 1
1-2
2-4
>4
High Low
Source : Colliers
Kompallu-Medchal-Shamirpet
are few key destinations for
premium gated communities with
guaranteed return on investments

Kolkata
Considered an important trade and commerce hub in Northeast India
Kolkata, the capital city of West Bengal, boasts a in areas with improved transportation facilities.
vibrant real estate market. City’s real estate has The real estate market in Kolkata has been dynamic
witnessed significant growth and development and diverse, offering various opportunities in
in the recent years fueled by favorable business residential, commercial, and industrial sectors.
environment, strategic location, rich cultural heritage Investing in land in Kolkata can be a lucrative option,
and well-connected transport infrastructure. The given the city’s growth potential and dynamic real
diversified and multifold economic base of the city estate market. However, like any investment, it comes
ensures a sustainable growth in the long term. with its own set of considerations and risks
Real Estate Market Land: The areas of Rajarhat, New Town in East Kolkata
Infrastructure development projects, such as the and Joka are developing as key investment spots.
metro rail expansion, flyovers, and road widening, With metro construction in full swing, the buyer and
have improved connectivity and accessibility across developer community will likely gain more confidence
the city. This has positively impacted the land market about investing in land along the corridors.

Diversified Economic Base Affordability
Well established trade and commerce hub in Low cost of living, Ease of transit enabled by developed
Northeast India supported by availability of public transport system, higher safety index and lowest
excellent talent pool, power surplus, and location attrition rate among other metro destinations.
of major ports.

Key anchor nodes
Secondary nodes
Growth Direction
Upcoming markets
Proposed Transit Infrastructure Projects • BBD Bag to Joka

• Kolkata-Siliguri Expressway
• Kolkata Metro Rail expansion • Varnasi-Ranchi-Kolkata Expressway
• Sec V to Howrah Maidan • Kolkata Airport Expansion
(East West Metro) • Raxaul-Haldia Port Expressway
• Airport to Kavi Subash, • NH34 between Barajaguli and Krishnanagar
• Noapara to Barasat via Airport Expansion to four laning
• Baranagar to Barrakpore • Triilateral Road- Kolkata- Bankok Highway
New Town –Rajarhat is one of the planned satellite town and home to several new and
innovative residential and commercial projects. The corridor is rapidly growing and considered
developing real estate neighborhoods, providing conveniences of contemporary living with
significant development of physical and social infrastructure
New Town- Rajarhat
New- Town Rajarhat is a planned smart satellite city

located at a distance of 11 kilometres east of Kolkata Planned Infrastructure, Developed
CBD area. The presence of important landmarks such Connectivity and Easy Access positions New
as Eco Park, Biswa Bangla Convention Centre, and
several IT parks has made the area a esteemed real
Town-Rajarhat area as an ideal location for
estate destination. investment in Kolkata Region.
• Planned Locality comprising a mix of residential, Connectivity

commercial , IT and institutional area
• Employment center in Kolkata having several • Nearest airport: Netaji Subhash Chandra Bose
well-known IT MNC’s International Airport (11 kms)
• Developed network of roads providing sound • Biwa Bangla Sarani connects Action Area I and II and
connectivity to Netaji Subhash Chandra Airport
Upcoming infrastructure developments and growth • The Howrah railway station is at a distance of 15 kms
potential the area has positions New town as one • New Garia – DumDum (Airport) line of Kolkata metro
of the most sought-after real estate destination in in under construction
Kolkata. • LRTS is planned to connect action area III to Biswa
Bangla Gate

• Proximity to Netaji Subhash Chandra International, Upcoming metro connectivity, civic planning and
developed social amenities
• Presence of major IT and business park in proximity
• Presence of gateway destinations like Eco park and wax museum, Biswa Bangla Convention center, Themed
resorts.
Shift in supply towards Premium Second Homes, led by proximity to key IT
Source : Colliers



Price Villa/
(INR Cr.) Bungalow
0 - 0.5
0.5 - 1
1-2
2-4
>4
High Low
Source : Colliers
Investments here are considered

as a capital investment option
dominantly as the city has been
expanding and developing towards
these regions

Top 5
Investment Corridors
Based on the market research for the potential states and the investment corridors, the top 5 corridors are
identified based on the annual rental yield and expected capital appreciation. Financial indicators such as
property capital yield, rental appreciation and significant physical infrastructure developments over a period
are some of the primary factors for an investor to consider the property. However, across the top 5 corridors,
monetizing land will bring in a higher rental yield and price appreciation in the coming future through
complementing infrastructure developments and increased tourism.
Average YoY
Price appreci-
Investment Annual rental return on Tourism Impact of Availability of
ation in a year
corridors yield time sharing expected infrastructure supply
(land)
basis
Neral -
2.5% - 4.0% 8% 28% High Moderate High
Matheran
Sanad –
2.0% - 3.0% 6% 25% Moderate Low High
Nal Sarovar
ECR –
Injambakkam
2.5% - 3.0% 7% 20% Moderate Moderate Moderate
-
Kovalam
Kompally
- Medchal – 2.0% - 2.5% 7% 20% High Moderate Moderate
Shamirpet
New Town-
2.0% -2.5% 6% 15% Moderate Low Moderate
Rajarhat
Source : Colliers
The real estate investment

market for land is still at nascent
stage of development in few
corridors, while corridors closer
to tourism destinations and
metro cities have grown multiple
folds with the impact of the
pandemic and increased real
estate tractions. Therefore, the
growth rate of second homes
or weekend homes in India
is expected to grow multiple
folds led by wide infrastructure
projects planned and under
construction across states.
Developers and investors should
capitalize on the opportunity to
bridge the supply-demand gap in
the potential corridors.

Emerging Investment
Opportunity
Covid-19 has changed the country’s realty sector, upending the housing market. Among the unexpected impacts
of the pandemic is the spike in demand for investing in land at a nature friendly location. The combination of
enhanced housing affordability, pandemic-era savings, health, hygiene and wellness concerns, a hybrid-work
revolution, need to diversify investments, and favorable realty policies fueled demand for land and holiday
home investments across the country.
The concept of investment in serene locations started to gain traction in the previous decade. With the
lockdowns and travel restrictions during the pandemic, more people have warmed up to this idea. However,
the year 2022 and the first half of 2023 was a positive one for Indian real estate market, with almost all
sectors reaching record highs in terms of demand in the post-COVID-19 period, driven by pent demand and
expansionary market sentiments.
Key Trends accelerating the pace of land investment in 2023
The pandemic era will surely be remembered as a time of adaptation. In fact, it is observed
that the demand in the luxury real estate segment of Villas, farmhouses, plots, and land have
increased 2x post Covid-19.
Key Takeaways for land Investments
1 Location is the most important

factor in the purchasing decision for
investors
2 About 70-80% of the investors expect to

commute to their weekend gateway in
2-4 hours drive
3
About half of the investors want their
investment to be near natural elements
like water bodies or Hill station
4 More than half of the investors prefer

to build weekend homes and rent out
the properties for better Rental Yield

Way Forward:
Method to monetize land
as rental income
COVID-19 pandemic has changed how people live and is addressed by the market by providing affordable
work across globe. Since remote work has become so solutions with respect to land and the property
popular, many people are looking for new methods proposed. One of the positive outlook towards
to enhance their quality of life. The yearning for land affordable solutions are adopting cabins/containers
for a weekend home has never been greater, be a that are quick in construction compared to typical
comfortable cabin in the mountains, a beach house Villas. These cabins/containers are more feasible with
with ocean views, or a huge villa in the outskirts. respect to space (compact & comfort), maintenance
and affordability. A larger investor segment shall be
With changing times, there has been a wider range targeted, making what was once a luxury and dream,
of income bracket who aspire to invest in land. This more approachable and affordable.
Villa/ Bungalow Cabin/cottage
Land area requirement Large to moderate land parcels Medium – smaller land parcels
Moderate – low
Land cost High (depending on the location and availability
of land)
Development cost Moderate Low
Development time High Low
Maintenance cost High Low
Potential tenant pool Premium income segment Range of income segments
Looking at the advantages that come with the shift cost associated to it., the idea of precast dwellings
of alternate income through land investment, the like Cabin A-frames and other comparable designs
investors have a larger range of products to look have seen a rise in demand globally. The key to the
forward to. With precast technologies taking a leap investing are these modules with low initial costs that
in the construction market, which saves in time and contribute to better long-term gains.

For more information, please contact: Business Development
Swapnil Anil Nishanth Kumar
Executive Director & Head National Director
Advisory Services | India Business Development Center | India
swapnil.anil@colliers.com nishanth.kumar@colliers.com
Umakanth Y Marketing and PR

Senior Director & Head of Delivery Sukanya Dasgupta
Advisory Services | India Senior Director & Head
umakanth.y@colliers.com Marketing and Communication | India
sukanya.dasgupta@colliers.com
Authors: Design and Development

Aishwarya Joshi Shravan B Kashyap
Associate | Advisory Services | India Manager - Creative | BDC | India
aishwarya.joshi@colliers.com shravan.kashyap@colliers.com
Arun Kumar K R Ashwath Kavali

Associate | Advisory Services | India Executive - Creative | BDC | India
arun.kr@colliers.com ashwath.kavali@colliers.com
Jay Bihani Kirti Sinha

Assistant Manager | Advisory Services | India Executive - Creative | BDC | India
jay.bihani@colliers.com kirti.sinha@colliers.com

About Colliers
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional

services and investment management company. With operations
in 66 countries, our 18,000 enterprising professionals work
collaboratively to provide expert real estate and investment advice
to clients. For more than 28 years, our experienced leadership with
significant inside ownership has delivered compound annual
investment returns of approximately 20% for shareholders. With
annual revenues of $4.5 billion and $99 billion of assets under
management, Colliers maximizes the potential of property and real
assets to accelerate the success of our clients, our investors and
our people. Learn more at corporate.colliers.com, Twitter
@Colliers or LinkedIn.
Legal Disclaimer
This document/email has been prepared by Colliers for adver-

tising and general information only. Colliers makes no guarantees,
representations or warranties of any kind, expressed or implied,
regarding the information including, but not limited to, warranties
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Advisory Services | India | September 2023

TOP INVESTMENT CORRIDORS IN INDIA | 1

2 | TOP INVESTMENT CORRIDORS IN INDIA

Often known as the stabilizer in Investment Portfolios,

Colliers India’s latest report, “Top Investment

TOP INVESTMENT CORRIDORS IN INDIA | 3

Ranking of the top 5 corridors

Investing in land & monetizing it in rental format fetches

4 | TOP INVESTMENT CORRIDORS IN INDIA

Investing in land Investment Returns

Growth Value over the years

TOP INVESTMENT CORRIDORS IN INDIA | 5

6 | TOP INVESTMENT CORRIDORS IN INDIA

Way Forward: Method

TOP INVESTMENT CORRIDORS IN INDIA | 7

Returns in key formats of Investment

Investments in Real Estate

8 | TOP INVESTMENT CORRIDORS IN INDIA

estate assets. As the impact of economic headwinds Rent

be resilient, supporting growth across sectors such as

Ranking for real estate market in key cities of India

Ranking based on best Performing cities

TOP INVESTMENT CORRIDORS IN INDIA | 9

Mumbai - The financial capital, economic powerhouse,

Ahmadabad - India’s first International Financial Services

Chennai - Detroit of India: accounts for 30 percent of

Kolkata - Emerged as one of the major warehousing and

Ranking based on Population census 2011

10 | TOP INVESTMENT CORRIDORS IN INDIA

An increase in capital expenditure on infrastructure

TOP INVESTMENT CORRIDORS IN INDIA | 11

Infrastructure development is the primary driver of city growth

12 | TOP INVESTMENT CORRIDORS IN INDIA

• Mumbai Trans Harbour Link

Proposed Infrastructure Projects

• Proposed coastal road

Key anchor nodes Growth Direction

Secondary nodes Upcoming markets

Weightage as per the triggers that impact appreciation of the market

TOP INVESTMENT CORRIDORS IN INDIA | 13

• Navi Mumbai Airport Influence Notified Area

Key Attractions to the market

• Bhimashankar Wildlife Sanctuary : Home to large number of endemic species.

• ND Flim studio: Bollywood theme park & a shooting location.

14 | TOP INVESTMENT CORRIDORS IN INDIA

5X Expected returns over next

Why this is a preferred Available Investment options

Neral – the foothills of Matheran

TOP INVESTMENT CORRIDORS IN INDIA | 15

Key growth drivers for the expansion of City

16 | TOP INVESTMENT CORRIDORS IN INDIA

TOP INVESTMENT CORRIDORS IN INDIA | 17

Sanand has emerged as a prominent industrial Connectivity

Key Attractions to the market

The part of the city that serves as a peaceful holiday location.

Towards Rajkot Towards Dholera

18 | TOP INVESTMENT CORRIDORS IN INDIA

3.5X Expected returns over next

Why this is a preferred Available Investment options

The location has been developed