BANGALORE: Today the real estate sector is focusing on providing all amenities and comforts in both Tier I and Tier II cities. It has acquired many aspects of development across its sub-sectors. The commercial realty sector has turned into smart and eco-friendly structures. The retail sector is rapidly growing with dense show stores at high-end market locations. They differentiate their stores by investing in innovative formats ranging from food, discounts to convenience stores. The residential property resources are also changing as per urbanization and commercialization in the urban areas of the country. Buyers are looking for individuality and uniqueness with high aesthetics sense in their design.
The Tier I cities include Mumbai, Delhi NCR, Kolkata, Chennai, Hyderabad and Bangalore while cities like Lucknow, Chandigarh, Bhopal, Jaipur, Kochi, Indore, Coimbatore, Mysore, Raipur, etc constitute the Tier II cities in India. The Tier I cities are the metro regions where development took place a long time ago. Whereas, the Tier II cities are extensions of these metro cities.
Over the last few decades, development has taken place majorly in the Tier I cities. However, due to barriers like irregular growth of city facilities, quickly increasing functional costs, scarcity of land and excessive property prices, the focus moved towards the so called “emerging hubs” or the Tier II places of the country.
As the Tier I cities in India reach their limits in development, buyers and investors are showing interest in entering the Tier II cities. With the current stagnant state of residential real estate in the Tier I cities, investors are looking towards these cities for investment due to the benefits they offer such as planned development, chance to grow, new opportunities, better hygiene, relatively less congestion and pollution.
The market for the Tier II cities is also booming due to the growth of the industrial sector and the overall high rate of development, both in commercial and residential terms. Residential sectors in these cities attract buyers and are selling fast, due to its clean environment and slow pace of life and new job opportunities, which are as good as those found in the metros, due to the relocating of many BPO centers, IT and Manufacturing companies.
Being the extension cities of the metros, the developers have been investing in these cities for quite some time. Residents and non-residents are showing an interest in investing in the Tier II cities. Apartment culture is growing in these cities, for which many people are buying housing units in townships and gated communities as their second homes. Education, retail stores, entertainment options, health care and recreational zones interest the customers within the residential areas that provide all the advantages which can be aspired by the customers. Due to their wide field, the townships are being developed on large packages of land. The real estate developers are catering to inter connected well planned and organized living experience to the home buyers.