Real estate Boom Shifts to Tier II & Tier III cities

June 26, 2007	(2 votes, average: 4.5 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

After making a mark in glimmering cities such as Delhi and Mumbai, the real estate has shifted its gears towards smaller cities which are fast emerging as good investment destinations. Although, these cities are at the threshold of real estate boom, they have been successful in attracting large interests of prospective investors.

Some upcoming cities that are turning to ‘growth centers’ include Guwahati, Nagpur, Bhuvaneswar, Ludhiana, Surat, Kochi, Indore, Vishakhapatnam, Mysore, Coimbatore. They are making rapid strides in real estate sector with prominent property developers being bullish on to harness the prospects.

These cities are characterized by low real estate costs, availability of large chunks of land for development, and untapped manpower, as per the data showcased by Knight Frank.

The trend is also wooing big real estate players like Hiranandani group, Godrej properties, DLF, Omaxe, Parsvnath, and Ansals API. Availability of productive land at low costs is the only factor encouraging these builders to look forward to tier II and tier III cities. For example, the rates at Mangalore’s City Centre, a prime locality, is hovering around Rs 2,200 per sq ft.

Another factor is the quick growth of IT/ITes sector which is expanding its operations mainly in these towns in a bid to stay ahead of competitors. The report lists some key reasons for real estate boom in smaller cities which are no other than increasing manpower, low risk factor, plaguing attrition levels.

IT/ITes sector accounts or 80% of total commercial space, a fact which undoubtedly positions it as driving the demand. Growing urbanization can also be seen as a driving force facilitating real estate growth in the mentioned emerging cities.

News Published Under:   Real Estate India |

Comments