Recent Expert on GuruTalk

Topic: Which is a better buy in West India - large or small cities?

Subhash Goel
Founder & Managing Director,
Goel Ganga Developments
Date: 27th January 2015

About Our Guru:

Passion, zest, warmth and experience is what Subhash Goel, our founder and CMD brings to Goel Ganga Developments. His seamless knowledge, effervescent personality and vision drive us. He is a visionary with foresight to transform barren land in the middle of no-where to self-sufficient, beautiful neighbourhoods and a pillar of strength.

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Following are the questions answered by Subhash Goel :

Moderator: Welcome to 'Gurutalk' with Subhash Goel, Founder & Managing Director, Goel Ganga Developments. The topic of the session was ‘Which is a better buy in West India - large or small cities?’.
Aman Dua: What are Gunthewari properties in Pune? Is wise to invest in Gunthewari properties? How it is different from other normal properties?

Subhash Goel: Hi Aman. Gunthewari properties are small plots of land done in a residential zone, so getting a built up is difficult. They are usually not found in the main city area. So it is better to go with an already sanctioned plot from a developer since he has taken the effort to get all the paperwork and sanctions. If it in an agricultural zone, people do not do a sale deal unless 10 gunthas. So in this time period it is not the best property to invest.

Aman Dua: Hi, what are the documents you should check before investing in Gunthewari Properties?

Subhash Goel: One certificate of gunthewadi, sanction plan and other legal documents of zone certificates.

Amarjeet Sharma: I would like to invest around Rs 30 lakh purely for getting a good return. Where should I invest?

Subhash Goel: Your best option would be to buy a flat in the city. But you could invest in farmer’s plots, something in an agricultural zone with that budget also.

Jai: Where and why to invest in West India to earn maximum capital appreciation in the next three years?

Subhash Goel: Depending on your budget, it is wise to invest in a bungalow plot/apartment with the sanctions in place. A brief research in upcoming areas of a city which are booming with new residential development is good to invest in as in a couple of years the prices are bound to increase, giving you great returns on your investment. There is atleast a 6 per cent increase per year in areas like Kharadi and Wagholi in Pune City, which are considered the upcoming areas of the city. Also, Ahmedabad and Surat are considered very stable cities in Western India to invest.

Ish: Small V/s big cities: For handsome rental returns where one should invest?

Subhash Goel: Both are equally good options,; it comes down to the budget you have to invest. Bigger investments will always give bigger returns. Cities with upcoming infrastructure are cheaper to invest in but in a couple of years will give you superb returns.

Piyush: I want to invest Rs 10-15 lakh in a property in either Vapi or Ahmedabad. Please advise which place would give better appreciation?

Subhash Goel: Ahmedabad

Cheshtha: Which is a better option for senior living investment -Pune, Lavasa or any smaller city? I am a retired government official and have lived my entire life in Mumbai. Now, I don’t want to be in that city anymore. Please suggest some suitable option. I am not keen on returns just want to have good infrastructure around, good medical facilities.

Subhash Goel: Townships like Lavasa are designed to create a self-sustained society, but they require a couple of years at least to come to that level of quality living with all facilities in place. A city like Pune which is not as crowded like Mumbai is a good option as well. It gives you access to all the facilities you require and at the same time cuts you off from the clutter of being in a city like Mumbai.

Preet: Pros and cons of investing in property in small cities over big cities?


Sandesh: Which is a better option to invest: Surat or Naigaon in Mumbai?

Subhash Goel: Surat

Prince: Since I can’t afford in Mumbai, please suggest where I should invest- Pune or Thane. Both are fine with me. Just wanted to know how returns would be different in these areas.

Subhash Goel: The prices of property in Pune are definitely lower so it is wise to invest in Pune. The rate of returns has recorded to be quite high in the last few years. You can get a good property within the circumference of the city in Pune whereas in Mumbai you will have to go further away to get a cheaper property.

Chandnii: How is the potential of Kolhapur as an investment destination?

Subhash Goel: Kolhapur is definitely a great option to invest with the development booming there.

Anita: Please suggest is investing in areas like Narhe or Mumbai Pune road is safe? What should I keep in mind before investing here?

Subhash Goel: Depends if you are looking for a bungalow plot or an apartment. You must always go with a reputed builder and make sure they have received all the sanctions before buying the flat/plot.

Jhilmil: I am too keen to know future prospects of Pimpri Chinchwad. Are new properties coming up there?

Subhash Goel: Pimpri Chinchwad has a good infrastructure and a very bright future. There is a lot of development happening there in both residential, commercial and hospitality sectors. It is considered to be the twin city of Pune. Pimple Saudagar, Charoli and Pimple Nilak are good development areas in Pimpri.

Neha: 1BHK unit demand is increasing? Who are the buyers? Why do you think they prefer 1BHK unit. Which are the localities where 1BHK unit is most supplies and demanded?

Subhash Goel: 1 BHK demand seems to have shot up in the last six months. The rate is much lower so easy for people with less budgets to invest. In Pune areas like Dhanori, Wagholi, Undri, Pisoli, Lonikand are booming with 1BHK residential development.

Kirti: How is the rental market in the east Pune localities such as Kharadi, Viman Nagar, Kalyani Nagar and Magarpatta? What is the demand and supply situation here? I am looking to invest.

Subhash Goel: Rental market is excellent east Pune Kharadi, Dhanori, Viman Nagar, Magarpatta, Koregaon Park. Is it is mainly because of the closeness to colleges and IT hubs, automobile industries and corporates in these areas which attracts non-locals to come and stay here. Nearly 2-2.5 lakh students come every year to Pune to study. Even in terms of social life, these areas are over supplied with restaurants, malls, theatres, etc. It is also well connected with the station and airport.

Ankit: In terms of demand and supply and new job market, various reports suggest that tier-II cities like Jaipur and Ahmedabad are ahead of tier-I cities like Mumbai. What is your take on it? Also, do you think investing in tier-II cities can yield comparatively better returns, keeping in mind the low ticket size?

Subhash Goel: Yes definitely. As you can hope to get very good returns a few years down the line. Jaipur and Ahmedabad are very fast developing tier-II cities.

Pintu: My building in Chembur, Mumbai is undergoing redevelopment. After which I will get a big 2BHK flat. Do you think should I sell it off and invest in some affordable locality or should I continue to live in that house and wait for appreciation further?

Subhash Goel: Redevelopment is usually quite a tedious process. You could consider the option of looking at other ready possession apartments.


Subhash Goel: I hope this session was helpful and will make you take better decisions while making an investment in Western India. Pune is booming with some quality development on the residential and commercial front. It is a great investment option even in terms of the connectivity it has to bigger metros. Thank you for the opportunity.
