When it comes to tracking the realty market in west, generally, we talk only about cities like Mumbai and Pune. However, there are other potential tier II and tier III real estate markets in the western part of India. Nashik, for one, has got decent attention from home buyers in the last couple of years. Strategic location and affordability are the key reasons.
Nashik, traditionally known as the ‘wine city’ of India is equidistantly located about 190 km away from commercial cities like Mumbai and Pune. Besides being a famous pilgrimage, Nashik is a well-known industrial district having presence of auto, engineering and electric industries of Maharashtra. Ambad, Satpur, Gonde, Igatpuri and Sinnar are the five major industrial zones developed by Maharashtra Industrial Development Corporations (MIDC) in Nashik. These zones house some of the renowned manufacturing units such as Hindustan Aeronautics Ltd., Mahindra & Mahindra, CEAT , Glaxo etc. In terms of infrastructure Nashik scores above average and has adequate road transport system, ample water supply and good social infrastructure such as educational facilities. Being a part of the west’s golden triangle, the city has witnessed huge infrastructural investments especially in development of National Highways.
As all other major cities have traditionally grown around water sources, the Godavari River has given the growth direction to the city. The old city consists of locatios like Raviwar Peth and Panchawat, located around the river banks. Location adjoining the old city, such as College Road, Nashik Road and Gangapur Road are the prime areas. However, with the development of highways eventually the growth has taken a route towards Mumbai-Agra National Highway (NH-3) and Nashik-Pune National Highway (NH-50). Areas along these highways such as Pathardi, Adgaon, Nashik Road and Deolali Camp are undergoing brisk real estate development. As the overall residential demand is undergoing a slowdown, Nashik has also witnessed a slow demand in recent years however, end user demand remained stable.
The city residential land scape is changing now and the villas and row houses are being taken over by apartments due buyer changing preference. With the changing real estate scenario of Nashik, the developers are gearing up to meet the new buyer requirements of bigger homes with all the amenities such as swimming pools, clubs and plenty of greenery. Few of the active developers in Nashik are Thakkers Developers, Archit Group, Karda Constructions. Samraat Group Nishant Builders, Nayantara Estate Shree Buildcon, Deepak Builders & Developers, Mittal Developers, Lalwani Constructions etc. Quality constructions, with a price point that is still very much lower in comparison to its neighboring cities, Nashik is ideal for second home investment.
Nashik, is fast emerging as weekend home destination due to its pleasant and cool climate, beautiful surroundings, high standard of living, greenery and well-developed infrastructure. The concept of townships instead of the stand-alone building concept is slowly entering the city. Much on the lines of Pune, the city space has been adorned with bigger, classier, stylish and suave homes from some of the best-known property developers. With the exception of a few prime areas, residential rates are in the range of INR 3,000 - 4,500 per sq ft. In areas like Gangapur and Collage Road, property prices have gone up to INR 6,000 per sq ft. Though there has also been an increase in luxury home projects in some pockets coming up, the popular places to invest are the new developing suburbs, like Anandwalli, Indiranagar, Pathardi, Makhmalabad and Pune Road. The rental value of the area is still in its nascent stage since the market is still in the initial stage of growth.
As the connectivity of Nashik has improved many folds with the development of Mumbai-Nashik Expressway and the commuting time from Mumbai has reduced drastically, the buyer interest is growing in this market. Due to its strategic location and growing economy, Nashik has all the potential to become smart city in coming years. With its affordable price range the city has tremendous potential for affordable housing.
About the author
Surabhi Arora, leads the research team in India and has more than 13 years of experience in carrying out multi-disciplinary research and analysis in the area of finance and real estate industry. Surabhi specialises in real estate economics, policies, commercial and residential real estate research with in-depth knowledge of market dynamics across major markets in India.