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
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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
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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.