By: Rohtas Goel, CMD, Omaxe
Track2Realty Exclusive: It is true that the property investment pattern of young professionals is changing as they are no longer demand drivers of metro property and want to invest in tier-II and III cities.
This is a positive trend considering the swiftness with which these cities will become advanced and modern. It also ensures a holistic growth of the property market across the country as it is no more confined to a few select metro cities. India is, no doubt, poised for urbanisation across the length and breadth of the country.
However, the sky rocketing property prices in metros is primarily a reason why people have been looking towards these cities, where affordability is one big plus point.
Besides, since corporate etc too have been moving into these cities, more employment opportunities are being created and there are more end-users than investors.
Also, traditional homes have begun to give way to group housing projects with facilities akin to metros like swimming pool, gated community, spa, gym and so on. Migration from villages into these cities has also propelled demand in tier II and III cities.
Young professionals are also investing more in commercial realty, of late for better returns. Young professionals look for higher returns in any investment they make and this generation has gone far ahead of what traditional investment offered.
It is because of this shifting trend that investment in property has picked up again after a brief lull during 2008-10. We have no data to substantiate their interest in commercial over residential.
This is a myth that reputed developers getting into tier-II and III cities will sky rocket prices in these cities. They are moving into these cities majorly because developers realise the spending capacity of these cities. No developer wants to create inventory.
All desire to have a full-fledged township where there are enough habitation and infrastructure facilities. Besides, land prices are comparatively cheaper and that is a major reason why actual cost of the property is not too high, yet.
The developers who realised the potential of emerging cities are already there for the last 4-5 years and at this point of time, most developers are giving possession of their projects; in places like Sonepat, Rohtak, Palwal, Indore etc. New players are entering these territories now.
…..to be continued
