Purchase of a large parcel of land in an area targeted for massive development by the Indian government. Total asset valued at $33 million (CBRE).
Land banking in India offers unlimited earning potential and although the term is also unfixed, investors should expect to hold the asset for a proposed period of 5-10 years. Earlier exit can be achieved by private sale of shares. (The land will be re-valued on an annual basis by CBRE).
Historical figures show an annual rise in land prices of approximately 18%.
The interesting thing about this particular area is the already planned redevelopment which makes it an ideal spot for land banking in India for the investors.
Once famous for its cultivation of oranges and cotton, due to the central location of Nagpur, the government is making it the ‘Hub of India’ composed of the following:
- Smart/Safe City Project
- Huge Industrial Expansion
- New Roads & Rail Links
- Urban Residential Development
- Health Care Projects
- Educational Projects
- Renewable Energy/Recycling Projects
What makes the Smart City Mission important?
- Between 2015 and 2050 India is projected to add 404 million people to its urban population count.
- Finding innovative methods and ways that would be cost effective, environmentally, socially and culturally sustainable to meet India’s urban challenges.
“Comprehensive development through SCM will improve quality of life, create employment and enhance incomes for all, especially the poor and the disadvantaged, leading to inclusive cities.”-Ministry of Housing and Urban Affairs