Tier-III cities to witness next realty boom

November 26, 2006	(2 votes, average: 4 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

So far, it has been the metros that have undergone a paradigm shift in terms of growth in the real estate sector with investors considering them good place for the future business prospects. The boom soon may extend to Tier-III cities, making them one of the preferred investment destinations for overseas realty players.

Opportunities triggering action will knock at the door of locations including Jaipur, Coimbatore, Ahmedabad, and Lucknow.
The property sector surveys predict that growth of Tier III cities is also expected to grab the attention of technology sector players who have been waiting so long to expand their operations into these previously untapped areas and markets.

At present, Tier III cities are believed to offer cost advantages of 15%-30% over Tier I and II cities through lower labor and real estate costs. Of the leading Tier III cities, Jaipur and Lucknow are likely to see huge growth in the coming years.

Enhanced operating costs, real estate supply constraints and socio-political risks are the known entities hampering growth of any area. Tier 1 cities including Delhi and Mumbai will focus on the development of suburbs and peripheral locations, say industry experts.

Contrary to this, destinations like Bangalore and Gurgaon are categorized under fast growing metropolis and the locations witnessing spearheaded improvement in every phase. Also, they are poised to emerge as excellent resources offering large human resource potential as well as availability of quality real estate.

Although, population of large occupiers in these locations is yet to reach optimum, Tier III cities feature primarily on the investment map.

News Published Under:   Real Estate India |

Comments