As real estate prices in emerging locations are low compared to bustling metropolises, demand is constantly increasing.

The residential real estate sector has become the most preferred investment choice by buyers and investors. With huge benefits and opportunities such as stability, future security, guaranteed returns, etc., it now attracts home buyers who plan for a secure future and a carefree life. The industry has gone through numerous changes and pandemic-led trends such as reverse migration, hybrid work culture, distance learning and the desire for wide open spaces and greenery have boosted the demand for housing in Tier II cities. In addition, affordability, infrastructure development, better lending rates, connectivity and increasing business opportunities are also pushing home buyers to these emerging locations that are emerging as hubs for real estate investment.

A major factor in real estate growth in Tier II cities is large-scale infrastructure development. Governments’ focus on developing special economic zones, industrial corridors, expanding metro, rail and road networks, airports and commercial clusters has greatly impacted and increased the real estate values ​​of emerging areas. Also, post-pandemic, the companies are evaluating the scope of setting up production units, IT hubs, satellite offices and others to suit current work cultures. As a result, a significant proportion of working professionals are relocating or have already relocated to these Tier II cities, and the demand for townships, gated communities and housing from trusted developers is growing at a rapid pace.

The government has largely supported real estate since the start of the pandemic. Favorable policy support and arrangements such as low mortgage rates, stamp duty reductions, easy financing options, unchanged repo rates and rising disposable incomes have led to a surge in housing demand. Home buyers have benefited greatly from these measures and are investing heavily in homes. ANAROCK’s consumer confidence survey found that of all participants who would rather buy in one of the Tier II cities, 61% are end users, while the rest buy for investment purposes.

One key thing that makes these locations lucrative for home buyers is affordability. Today’s discerning customers seek branded and modern products in the residential real estate market. As real estate prices in emerging locations are low compared to bustling metropolises, demand is constantly increasing. The presence of a well-developed social infrastructure such as shopping centers, schools, hospitals, cinema halls and community centers also contributes to the growth. In addition, better valuation and rising employment are also attracting home buyers.

Today, customer preferences have changed and they want homes with large spaces, balconies, gyms, play areas, gardens, swimming pools, greenery and other amenities for a complete living experience. Realizing the importance of staying close to their families, they invest in homes in Tier II cities. In addition, these homes for working professionals in metropolitan cities serve as a great retirement investment opportunity and they are moving forward to invest in these locations as residences after retirement, preferably in their hometown.

The opportunities for real estate development in Tier II cities are enormous. Today, these locations enjoy improved transportation facilities, metro network, business and employment opportunities. Moving forward, real estate investment in emerging locations will be highly rewarding for investors in these highly balanced markets for a stable future.

(By Santosh Agarwal, CFO and Executive Director, Alpha Corp)


This post Tier II cities continue to attract home buyers – here’s why was original published at “https://www.financialexpress.com/money/tier-ii-cities-continue-to-attract-homebuyers-heres-why/2462653/”

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