Growth Hub: Indore Turns Bright Spot in Central India’s Property Market

Indore’s economy is sized at around $12 billion. It is estimated that around one-third of the snacks in India are produced in Indore, giving it the epithet of Namkeen capital of India. About 26 km from Indore is Pithampur city, a leading hub of automobiles and auto part manufacturing.

Major MNCs and BFSI set-ups have their regional offices based out of Indore, due to the cities’ growing economic influence. Indore is also home to a burgeoning engineering, textile, agribusiness, FMCG business. It is investing heavily in attracting more and more IT, ITeS, GCCs and hardware enterprises. Concentrated efforts are put to develop dedicated business and IT parks to transform Indore into a technology and innovation hub.

Infosys and TCS are already operational in Indore. Numerus other big technology companies are eyeing to start large scale IT production facilities in Indore.

Infrastructure Development of Indore

The infrastructure in Indore is developing at an unprecedented vigour with increased investments across a slew of greenfield & brownfield projects. The city is well connected with major metros all over India via railway, highways and air. New business parks, IT parks, Internal Container Depot (ICD), business corridors, highway networks have been unveiled in recent times, bridging its gap with other major metros in India.

Work is going full throttle on the 124-km Indore metro project. The INR 12,000 crore project is set to start any time before 2030 as it is in its advance stage of completion. The trial run of the metro has been already done.

Work has begun on the developing a new airport terminal. This will take the total passenger capacity to 5.5 million from 4 million presently.

A new ultramodern 12-km commercial stretch will be developed connecting airport with the Vipul Square market under IDA (Indore Development Authority). Acting as Indore’s new CBD, the commercial catchment called Super Corridor will be smaller version of GIFT City, Ahmedabad and BKC, Mumbai.

An IT hub will be developed in the super corridor, following an investment of INR 1,500 crore. The bustling corridor will also have dedicated business parks, AI park, pharma park, green energy park, education city.

Thriving Real Estate Market

Indore is a thriving real estate market with active participation from both, end-users and investors alike. The dual factors of improved liveability index and a cost of living which 15-20 per cent lower than metros, makes it a perfect place to live and work. Interestingly more than half of the population in Indore are migrant workforce.

Major property micro-markets are MR 10, AB Road, LIG Square, Old Palasia, Annapurna Road, Vijay Nagar. There are other markets such as Rau-Pithampur Road, Super Corridor and Vijay Chowk, which are witnessing a spurt in property demand.

Super Corridor is an area of interest for the future. It will be a bustling hub for aspirational home, luxury lifestyle, high streets and entertainment in the years to come. As a self-sustainable ecosystem, it will prioritize the concepts of work-play-live in the city.

Average property prices in Indore have risen by around 8-10 per cent yearly in the past few years, further underscoring ascending tendencies in the real estate industry. Although price growth will slow down a bit in the coming times, the property market in Indore will continue to thrive.

Indore is also a robust commercial market, with leasing rates mostly in the range of INR 25-60 per square foot. However, markets like Vijay Nagar which are premier destination can command a lease rate of around INR 75- 135 per square foot.

Source: https://www.realtynmore.com/growth-hub-indore-turns-bright-spot-in-central-indias-property-market/