BANGALORE: India has witnessed a growth in its economy through the real estate. Over the last few decades, development has taken place majorly in the Tier I cities. These cities witnessed rapid growth and a spurt in urbanization that fuelled inflow of population from the countryside and smaller towns. These cities have already witnessed multi-storey buildings, sky scrapers, mega townships, luxury malls, hotels, premium residential properties and industrial growth.
These cities also provide the builders with several other advantages such as less salary expectations, less price fluctuations, a comparatively low labour cost and low operation cost. The return in investment is higher and much more stable as compared with the metro cities.
With the increase in employment opportunities, home buyers are increasingly becoming more interested in property. Many people have been investing in these cities for their second homes for aged parents, for whom the fast paced life of the metros is a deterrent. With the government support in upgrading the urban infrastructure and the improvement in connectivity, these cities have become more accessible and hassle free. International airports are a part of cities like Chandigarh and Amritsar.
These cities also provide opportunities to investors such as NRI’s who prefer a bungalow spread over large acres of land. These places also, minimize the drawbacks that are associated with the metros – reduced personal life, high living cost, expensive transportation, traffic and travel time, costly house rent and education.
Clearly, real estate firms are shifting to these cities for cheaper real estate and manpower. Factors which led to the growth of the real estate in these cities are many – walk-to-work concept, quality lifestyle, media exposure, emergence of software companies and an increased affinity to retail. Cities like Noida, Gurgaon, Chandigarh, Patna, Mohali, Nagpur, Lucknow, Agra and Udaipur have improved significantly from the real estate perspective. These cities offer opportunity to developers for the concept of low cost housing or affordable houses, thus ultimately benefitting consumers.