New Delhi: Rapid urbanization, the scarcity of land in large cities and improved infrastructure in the hinterland have resulted in the emergence of 17 new industrial corridors in the country that are rapidly becoming preferred destinations for investment.
This is the finding of a study by real estate advisory Cushman and Wakefield. The study says these corridors are usually extensions of tier I and tier II cities and feed off the existing talent pool of these cities.
The study identifies Hinjewadi near Pune, Manesar near Gurgaon, Sriperumbudur near Chennai, Greater Noida near New Delhi and Noida, Panvel, Thane and Virar near Mumbai, Rajarhat near Kolkata, Bidadi near Bangalore and eight others as corridors that have high investment potential.
It says firms are begining to explore newer locations because of limited availability of large land parcels in the metropolitan cities. These suburban and peripheral developments are a cost saving and risk diversification measure.
The study rates the corridors on parameters such as physical and social infrastructure, and government policies among others. Hinjewadi and Manesar score the highest on all parameters. These two locations will likely benefit from their proximity to Pune and Gurgaon, respectively.
The study also says that both corridors have adequate land banks available for large developments such as special economic zones or townships.
“I think industrial corridors will offer real estate opportunities,” said Arvind Parekh, chief financial officer of Omaxe Ltd, a real estate developer. These corridors will need “townships and residential developments,” he added. Omaxe has residential projects in Greater Noida, “ because there is a possibility of an airport coming up either in Greater Noida or Noida,” Parekh said.
Other locations, such as GST (the area takes its name from the Grand Southern Trunk road that passes by it), Sriperumbudur and Shamshabad near Hyderabad also present similar investment potential. Sriperumbudur is emerging as a manufacturing hub, while the services sector is more active in GST and Shamshabad.