Tier II cities continue to attract homebuyers – Here’s why. Authored Article By Financial Express
As property prices in emerging locations are low as compared to bustling metropolises, the demand is constantly on a rise.
The residential real
estate sector has become the most preferred investment choice of buyers
and investors. Carrying huge benefits and opportunities such as
stability, future security, assured returns etc, it is now attracting
homebuyers who are planning for a secured future and hassle-free living.
The sector has gone through myriad changes, and pandemic-led trends
such as reverse migration, hybrid work culture, remote learning and
desire for large open spaces and greenery have propelled housing demand
in Tier II cities. Additionally, affordability, infrastructure
development, better loan rates, connectivity and rising business
opportunities are also pushing the homebuyers towards these emerging
locations which are emerging as real estate investment hubs.
A factor that is majorly at play in the growth of real estate in Tier II cities is large-scale infrastructure development. The governments’ focus on developing special economic zones, industrial corridors, expansion of metro, rail and road network, airports and commercial clusters have highly influenced and enhanced the real estate value of emerging areas.Also, after the pandemic, the companies are evaluating the scope of setting up manufacturing units, IT hubs, satellite offices and others to match the present-day work cultures. Due to this, a significant section of working professionals is moving or has already moved to these Tier II cities, and the demand for townships, gated communities, housing by trusted developers is on a meteoric rise.
The government has largely supported real estate since the onset of the pandemic. Favourable policy support and schemes such as low home loan rates, reduction of stamp duty, easy financing options, unchanged repo rate, and rising disposable incomes have led to a surge in housing demand. Homebuyers have been greatly benefited from these measures and they are heavily investing in residential real estate. ANAROCK’s consumer sentiment survey revealed that out of all participants who would prefer to buy in any of the Tier II cities, 61% are end-users while the remaining are buying for investment purposes.
One major point which makes these locations lucrative for homebuyers is affordability. Today’s discerning customers search for branded and modern products in the residential real estate market. As property prices in emerging locations are low as compared to bustling metropolises, the demand is constantly on a rise. Also, the presence of well-developed social infrastructure such as shopping centers, schools, hospitals, cinema halls, community centers is further aiding growth. Moreover, a better scope of appreciation and rising job opportunities are also attracting the homebuyers.
Today, the preferences of customers 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. They have realized the importance of staying close to their families and for this, they are investing in homes in Tier II cities. Additionally, for working professionals in metropolises, these homes serve as a great retirement investment opportunity and they are stepping ahead to invest in these locations as post-retirement abodes, preferably in their hometowns.
The opportunities for real estate development in Tier II cities are huge. Today, these locations enjoy upgraded transport facilities, metro network, business and job opportunities. Going forward, investment in real estate assets in emerging locations will be highly rewarding for investors in these highly balanced markets for a stable future.