Urbanisation along the Delhi-Mumbai Industrial Corridor is expected to merge Ahmedabad, Vadodara and Surat into an important industrial cluster of India, according to consultancy firm Jones Lang LaSalle.

More auto plants

This industrial hub is expected to attract large investments given the business friendly environment created by the corridor with the support of the Gujarat government.

Gujarat has turned a hub for manufacturing and home to several car manufacturers including the Tata Nano plant, with proposals for new plants for Ford and Maruti.

With 24-hour power supply, special investment regions, closely-knit roads and Government support, Gujarat has emerged as one of the key investment destinations in the country.

And this busy cluster is expected to spur hectic development.

Realty demand stable

In its report for June 2012, the consultancy stated that office space demand remained stable and retail and residential offtake continued to be slow across all major markets during June.

Bangalore, Pune, Chennai and Hyderabad witnessed healthy leasing activity. However, rents and capital values remained stable across major cities with marginal increase in Chennai and Kolkata.

. Residential sales too improved in June. The office demand in Delhi witnessed marginal improvement and rentals were stable in Delhi and NCR.

The demand for retail space remained strong in Hyderabad and residential sales continue to improve. Due to a lack of good malls in Mumbai, retailers preferred the standalone format.

vrishi@thehindu.co.in

(This article was published in the Business Line print edition dated July 12, 2012)
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