Land is an important factor of production, said Adam Smith, and cannot be ignored. Post-economic reform thats been especially true for investors in Maharashtra, one of Indias most popular investment hosts. Of late, however, the price of such popularity has been spiralling real estate prices.
In capital Mumbai prices have risen 250 per cent in four years and in Thane, the chemical belt on the outskirts of Mumbai, industrial land costs have jumped 300 per cent, from Rs 2,400 per sq ft to Rs 7,200 per sq ft, in just one year. Not surprisingly, new investors are discovering better bargains in areas like the Roha-Chiplun-Ratnagiri in the Konkan region or in Pune or Aurangabad.
Take Pune, which currently ranks high in the popularity ratings. The town that was better known as Maharashtras automobile city now has companies like AT&T, Underwriters Laboratories, Maersk, Chrysler and Fuji planning to set up office here.
In fact, ever since the city authorities set up a technology park (with its own earth station) at Talavade, near Pimpri-Chinchwad, Pune has been gaining a reputation as a software centre. Bangalore-based Infosys Technologies and Littlewoods have identified Pune for their expansion plans. Says Pranay Vakil, managing director, Knight Frank (India), an advisory services and property-management company, The availability of regular water and power supply and the good connections by rail, road and air are factors for which Pune scores over Bangalore and other cities.
