2016 to witness the uprising of tier 2 cities

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7/23/2019 2016 TO WITNESS THE UPRISING OF TIER 2 CITIES http://slidepdf.com/reader/full/2016-to-witness-the-uprising-of-tier-2-cities 1/2 2016 TO WITNESS THE UPRISING OF TIER 2 CITIES  Our forefathers correctly quoted that food, clothing and shelter will always remain the  basic necessities of every human being. Shelter, in other words, real estate is not only regarded as a basic necessity but now days as, an investment opportunity or something that fulfils lavish needs of a person. Indian real estate sector has been growing leaps and bounds over the last few decades and is able to reap the benefits arising out of the modern concepts of construction. The pace at which barren lands are being transformed into metros is something to be noted. Although, in a product life cycle, there comes a stage where decline is sure to begin and hence, the once prominent realty regions in the country are guaranteed to saturate. This shifts our focus towards understanding and upbringing regions that are next in line, i.e. Tier cities. !"evelopment on a piece of land cannot be redone or can be at most, revamped. The space once utilised does not allow further additions and here comes the importance of having land  parcels in other regions. "epending upon certain parameters li#e infrastructure, civic amenities and others, Tiers are divided. Tier $ cities in India are nearing its saturation as development has almost reached its pea#. Therefore, the developers will now have to broaden their avenues and reach out to Tier mar#ets to gain bac# the momentum and this year will  be the year of this possibility considering A%&'T and Smart (ities plans), avers %r. An#it Aggarwal, (%", "evi#a *roup. SCOPE OF IMPROVEMENT The benefits that something new hold over the previous is the fact that it is new and has ample of scope to improve than previous. !+hy Indian real estate has been a superior  performer than others is because that it is blessed with todays technology, ideation, concepts and s#illed manpower. This allows better innovation and development for domestic developers that directly results in better structures and facilities. In a similar manner, Tier cities in our country will grow much better than todays Tier $ cities which are the #ey for smart futuristic development. +e are already underway with mammoth infra upgradation  plans in our country that are guaranteed to aid the development of Tier regions), shares %r. -ive# *upta, "irector, -ardhman state / "evelopers 012 3td. CONVENIENT PRICING 1ricing plays one of the most vital roles in the attraction of real estate prospects of a region. Tier cities being emerging hot spots for investors and developers are offering deals at competitive prices that much lower than Tier $ cities. !1rices at #ey Tier $ realty regions  begin from &s. 4,555 per sq. ft. whereas countrys top Tier regions at present are offering  properties starting from &s. ,655 7 &s. 8,655 per sq. ft. There are two angles of loo#ing at it9 one being the return on investment factor and other being lesser cost than Tier $ cities which help in creating a better demand from investors as well as end users. (ustomers interested to invest in Tier cities must start investing in these regions as big plans are in pipeline for

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Page 1: 2016 TO WITNESS THE UPRISING OF TIER 2 CITIES

7/23/2019 2016 TO WITNESS THE UPRISING OF TIER 2 CITIES

http://slidepdf.com/reader/full/2016-to-witness-the-uprising-of-tier-2-cities 1/2

2016 TO WITNESS THE UPRISING OF TIER 2 CITIES

  Our forefathers correctly quoted that food, clothing and shelter will always remain the

 basic necessities of every human being. Shelter, in other words, real estate is not onlyregarded as a basic necessity but now days as, an investment opportunity or something that

fulfils lavish needs of a person. Indian real estate sector has been growing leaps and bounds

over the last few decades and is able to reap the benefits arising out of the modern concepts

of construction. The pace at which barren lands are being transformed into metros is

something to be noted. Although, in a product life cycle, there comes a stage where decline is

sure to begin and hence, the once prominent realty regions in the country are guaranteed to

saturate. This shifts our focus towards understanding and upbringing regions that are next in

line, i.e. Tier cities.

!"evelopment on a piece of land cannot be redone or can be at most, revamped. The space

once utilised does not allow further additions and here comes the importance of having land

 parcels in other regions. "epending upon certain parameters li#e infrastructure, civic

amenities and others, Tiers are divided. Tier $ cities in India are nearing its saturation as

development has almost reached its pea#. Therefore, the developers will now have to broaden

their avenues and reach out to Tier mar#ets to gain bac# the momentum and this year will

 be the year of this possibility considering A%&'T and Smart (ities plans), avers %r. An#it

Aggarwal, (%", "evi#a *roup.

SCOPE OF IMPROVEMENT

The benefits that something new hold over the previous is the fact that it is new and has

ample of scope to improve than previous. !+hy Indian real estate has been a superior

 performer than others is because that it is blessed with todays technology, ideation, concepts

and s#illed manpower. This allows better innovation and development for domestic

developers that directly results in better structures and facilities. In a similar manner, Tier

cities in our country will grow much better than todays Tier $ cities which are the #ey for

smart futuristic development. +e are already underway with mammoth infra upgradation

 plans in our country that are guaranteed to aid the development of Tier regions), shares %r.

-ive# *upta, "irector, -ardhman state / "evelopers 012 3td.

CONVENIENT PRICING

1ricing plays one of the most vital roles in the attraction of real estate prospects of a region.

Tier cities being emerging hot spots for investors and developers are offering deals at

competitive prices that much lower than Tier $ cities. !1rices at #ey Tier $ realty regions

 begin from &s. 4,555 per sq. ft. whereas countrys top Tier regions at present are offering

 properties starting from &s. ,655 7 &s. 8,655 per sq. ft. There are two angles of loo#ing at it9

one being the return on investment factor and other being lesser cost than Tier $ cities which

help in creating a better demand from investors as well as end users. (ustomers interested toinvest in Tier cities must start investing in these regions as big plans are in pipeline for

Page 2: 2016 TO WITNESS THE UPRISING OF TIER 2 CITIES

7/23/2019 2016 TO WITNESS THE UPRISING OF TIER 2 CITIES

http://slidepdf.com/reader/full/2016-to-witness-the-uprising-of-tier-2-cities 2/2

them, which in near future will fuel the property prices), states %r. Sushant %uttre:a, (%",

(osmic *roup.

LONG TERM RETURNS

(arrying a low price tag with promise of capital appreciation, Tier cities are ready to offer better returns for their customers. 3ong term investment and second home buying will be the

initial reasons of growth momentum for emerging Tier cities. !&egions that are available at

lowered prices today with well laid future infrastructure plans are sure to offer greater returns

to the investors in future. +ith A%&'T offering 655 cities to be revamped, Tier cities will

 become more prominent once infra upgradation ta#es place in the regions. 1roperties bought

today will cost less along with rapid and sudden price appreciation, which will ta#e place

gradually in the next 76 years and yield massive returns, that are pro:ected to be as much as

65 percent), affirms %r. &ahul (hamola, %", One 3eaf *roup.

WHAT’S NEXT

As Tier $ cities reach saturation point, Tier cities will become the next big fish for the

developers and potential buyers. !The future case study of every Tier city of today will be

much li#e Tier $ cities, where the infrastructure came up followed by housing demand that

 provo#ed developers to enter and put a foot in those regions. +ith the government actively

 promoting urbanisation, this will pave way for developers to enter in Tier cities and offer

residencies and office spaces. The growth and return prospects are great in Tier cities with

huge scope of development), says %r. Sudeep Agrawal, %", Shri *roup.

It has now become crucial for Tier regions to come up as there will be no point developingin regions where there is almost no demand left and prices are s#yroc#eting. %a:or Tier

regions in India such as ;ochi, <ashi#, -i=ag, -adodara, Trivandrum, >aipur, %angalore,

Indore, *oa, (oimbatore and others are witnessing wonderful infrastructural and civic

upgradation, and thus are perfect destinations for realty developers and buyers to loo# out for.

!The graph and direction of growth has become pretty clear for Tier regions of India to

ma#e their presence felt in the sector. It is now :ust a matter of time when the infra execution

starts ta#ing place. %any Tier poc#ets are settling well with residential and commercial

 pro:ects mushrooming with quality construction and modern amenities in place. "ue to well7

 planned infrastructure, the connectivity to these pro:ects is already very good and is sure to become better. As the catchment area gets broader, these Tier regions will be able to cater to

 better demand and offer greater supply, especially in 5$?), concludes %r. &a#esh @adav,

(hairman, Antri#sh India.