In late November, soon after environment minister Jairam Ramesh gave the green signal for Mumbai's second airport, property prices around its location shot up by 20%. This was the same area that, even six months ago, real estate consultants and analysts were advising investors to stay away from. They reasoned that the prices had run up way too quickly. Today, the same professionals are recommending buying select properties in the same area at higher prices.
If these professionals had got it wrong once, what is the guarantee they will not get it wrong again? There are so many unanswered questions about the part of Navi Mumbai where the airport will come up. Where will the proposed Metro station be? Which areas will be most affected by aircraft noise? Where will commercial development happen?
The airport example is illustrative of the shape of things to come in 2011 for real estate buyers, both residential and commercial. As metros like Mumbai, Delhi and Chennai are retrofitting old buildings and seeing an infrastructure upgrade, a lot of real estate action is becoming visible. Read the full report here.
Source: by T Surendar, Forbes India, News Center.
