By: Rohtas Goel, CMD, Omaxe
Track2Realty Exclusive: Property market in India is no more metro centric as major national players have already made an entry into tier II and III cities across India. An extended period of high interest rate have dissuaded buyers in metros to move towards more affordable housing in tier II and III cities, as these cities have the potential to fetch higher rentals as well.
The premium on houses in these cities also, of late, has been good. Besides, in cities closer to metros, for example Bahadurgarh, where there were not enough housing, but immense industrialisation, people used to commute from rented accommodation in Delhi. But now, things have changed. Bahadurgarh has emerged as one of the most attractive real estate destinations with people prefer to commute from their self owned homes.
Apartment culture is new in many of these cities and plotted development has historically been the trend. That trend is changing as our experience shows how different cities have and are responding to varied mode of housing.
Like for example, Punjab responds more to plotted development and Ludhiana specifically to high-end luxury projects. On the other hand, there is a demand for group housing in Lucknow and Delhi, floors in Bahadurgarh and group Housing in Rudrapur. Our projects have been designed and conceived keeping in mind the demand scenario, taste and spending capabilities.
What actually is amazing, and not many people believed earlier, is that these cities are already brand conscious. Our entry into these cities was not offered with resistance. Being a national player, the onus was on us to maintain the kind of quality and customer satisfaction we have been known for and over the years, we have delivered on these.
Though I feel the catalytic reasons for reputed developers’ entry into tier II and III cities have been low cost of land, increase in spending capacity, faster execution of projects and ultimately the demand for a better lifestyle. However, the emerging trend of nuclear families have necessitated more dwelling units and the desire to work near one’s home due to more employment avenues are also reasons strong enough.
What makes the property market of tier II and III cities unique is the fact that these are more end user than investor driven and hence less demand & supply mismatch. This is a major reason why there is huge demand for projects. This also helps in fast increase in habitation in these regions, thereby speedy progress in infrastructure development.
…..to be continued
