Nashik: City of limitless real estate potential

Known as the wine capital of India, Nashik is now attracting scores of property buyers and investors excited by the citys affordable realty prices, excellent infrastructure, temperate climate and better quality of life in stark contrast to saturated cities like Mumbai and Pune, writes Rajesh Kulkarni.

Nashik, popularly known as the wine city of India is located around 190 km away from Mumbai and Pune. Besides being a famous pilgrimage centre, Nashik also boasts of a strong industrial base with a strong presence spanning the auto, engineering and electrical industries.

Ambad, Satpur, Gonde, Igatpuri and Sinnar are the five major industrial zones developed by the Maharashtra Industrial Development Corporation (MIDC) here and host reputed corporate majors including Hindustan Aeronautics Ltd (HAL), Mahindra & Mahindra, CEAT, LG Electronics, Samsonite, Garware, Siemens, Blow Plast, Bosch, Carbon, Thyssen Krupp, Ceat, Atlas Copco, TI Cycles and Glaxo among others.

Private banks have been major drivers for commercial real estate in Nashik, with ICICI, HDFC and HSBC having expanded their operations phenomenally. Moreover, the Government of Maharashtra is investing heavily into the already thriving Wine Parks industry in Nashik, which is already famous for its Sula Vineyards and York Vinery. It also plays an utmost important role in agriculture. Onion, tomatoes and many other vegetables are exported from Nashik to various parts of the world.

Nashik has been the educational hub of North Maharashtra. The city has two state run universities: Yashwantrao Chavan Maharashtra Open University (YCMOU), near Gangapur village on the outskirts of the city and the Maharashtra University of Health Sciences. Also located here are several leading educational institutional including: Adv. Baburao Ganpatrao Thakare College of Engineering, SND College of Engineering & Research Centre, KTHM College, NDMVP’s College of Engineering, Symbiosis Institute of Operations Management and BYK College to name a few. Reputed educational institutions like the Mumbai Educational Trusts (MET) Bhujbal Knowledge City, Sapkal Knowledge Hub and Sandip Foundation have also set up their campuses in the city.

Nashik also scores well above average in the infrastructure front with well-developed roads, ample water supply and fast developing social infrastructure. In recent years the city has witnessed huge investments in the infra sector especially in the development of National Highways.

Realty Overview:
Nashiks realty market is geared for rapid growth going forward given its proximity to major cities like Mumbai and Pune and current saturation of the realty markets in both these cities. Another important factor likely to influence the real estate growth of Nashik is its lower entry costs vis-a-vis Mumbai and Pune and attractive appreciation rates that have made it a haven for property investors.

Adding to its lure as a commercial destination has been the entry of several IT, ITeS, BPO and KPO companies who have set up base here attracted by the citys much-lower property prices and the abundant supply of young, English-speaking youth.

Nashik realty has also benefited from a slew of major infrastructure development projects like the four-laning of the Nashik-Mumbai highway and the coming of the Nashik-Pune highway which have done wonders on the connectivity front.

The Sinnar SEZ is at an advanced stage and Accenture has recently announced setting up of a massive 200-acre facility in Nashik. The recently upgraded airport at Ozar with an air cargo terminal and the proposed international airport at Shirdi have catapulted Nasiks to one of the countrys fastest developing cities.

Ample water supply and excellent road and rail connectivity to most major cities are some of the other key factors that have played a key role in its rise as a hot realty destination. Other key factors that have also contributed towards this end include its salubrious climate (much like Pune had about two decades ago), affordable property prices, low cost of living and the world-renowned Kumbh Mela, which is hosted here every twelve years.

Key Trends:
Traditionally locations adjoining the old city like College Road and Gangapur Road have been the front runners in terms of Nashiks real estate development. However with rapid highway development in recent years areas near the Mumbai-Agra National Highway (NH-3) and Nashik-Pune National Highway (NH-50) are also witnessing a hectic pace of realty development. Other fast upcoming realty destinations include areas such as Pathardi, Adgaon, Nashik Road and Deolali Camp.

The citys residential landscape is in the midst of a change and villas and row houses are now being replaced by apartment complexes and high-rises equipped with the latest amenities. Some of Nashiks leading developers include: Thakkers Developers, Archit Group, Karda Constructions, Samraat Group, Nishant Builders, Nayantara Estates, Shree Buildcon, Deepak Builders & Developers, Mittal Developers and Lalwani Constructions among several others.

With the exception of a few prime areas, residential rates here are in the range of INR 3, 000 - 4500 psf, while prime locations such as Gangapur and College Road command a premium with prices in the region of INR 5, 000 - 6,000 psf. The prime areas for commercial development are still the Old City, College Road, Nashik Road and Gangapur Road.

Popular realty investment destinations here include upcoming locations like Anandwalli, Indiranagar, Pathardi, Makhmalabad and Pune Road, though the rental values here are still in their nascent stage, the potential for higher returns going forward remains impressive. Ongoing projects at locations like Takli Road, Chandsi, Nashik-Peth-Gujarat Highway and properties along Nashik Road are being preferred by investors looking for slightly upmarket locations offering a good potential for real estate development.

With the western side of the city already well-developed, one of the fastest-developing areas is the southern side, Pathardi, which already has fast-selling projects, holds immense promise for future appreciation. Deolali on the outskirts of Nashik is another potential location for investors looking for good returns in the future.


Investment Potential:
Overall, Nashik offers very encouraging fundamentals for real estate investors. Some of the advantages it enjoys over other major cities in Maharashtra include:

• Well-developed physical infrastructure.
• Adequate and reliable water supply.
• Strategic located at one vertex of the golden triangle of Mumbai, Pune and Nashik.
• Comparatively lower environmental pollution.
• Efficient and well-developed intra and intercity commuting facilities.
• Excellent connectivity with other regional growth centres.
• Developed industrial estates such as Ozar, Sinnar, Satpur and Ambad in the immediate vicinity.
• Modern Software Technology Park at Ambad.
• Salubrious year-round climate.
• A safe and secure social environment thanks to the presence of a major defense base here.
• Excellent air and rail connectivity with other major cities.
• Large pool of skilled, English-speaking professionals.
• Well developed educational and healthcare sector with a large number of reputed institutions having a presence here.