With the high economic growth in India the demand for real estate is going higher every day. So, the news of a project of 300-acre plot in Noida (Uttar Pradesh) did not surprise me much. Unitech has bagged the deal by offering Rs 1,582 crore (1 crore=10 million) for this project. Unitech will develop the land and build a premium residential township. It is expected that it will take 3 years to finish the project. The bid won by Unitech is the largest land deal in the history of Indian real estate industry.
Perhaps, this is the beginning of large land deals in India. Other states will become interested to build similar premium residential township. Especially, those cities who are trying to become successful in outsourcing will have to go for high building high quality residential areas for attracting foreign professionals. If I was an investor in the Indian share market, I would surely keep a close eye to the shares of the real estate companies.
I have just one worry. In the third world countries poor landowners do not get fair price for their land acquired under such projects. I hope that Indian government makes an exception to this bad custom.
What is your idea about it?
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