Is Indian real estate’s next growth journey in satellite cities?
A country’s growth is not when its metropolitan cities grow taller but it can truly be determined when smaller towns, villages, and second and third-tier cities see a spurt in the construction of real estate.
India is achieving a milestone as they celebrate their 75th year of Independence. The highlight of our country’s growth is this – the stellar rise of India’s towns and villages which is being strengthened by robust infrastructure. Also, utmost utilisation of the real estate market is taking place because of the rising demand from citizens.
India is among the fastest-growing major economies in the world and the real estate sector is the second largest employment generator, and third largest sector in terms of FDI flow and also spurs the overall economic growth. The real estate market is poised to touch Rs 65,000 crore by 2024 and by 2025, this sector is expected to contribute to 13 percent of the country’s GDP. The real estate sector is clearly demonstrating a growth trajectory and is in fact galloping into its next journey. Over the months, the real estate sector is constantly evolving with innovative solutions across residential, commercial, and retail projects.
The Covid-19 pandemic changed the dynamics of the way people work and stay across the nation. As normalisation is streaming back into our lives; what’s pertinent is the fact that urbanisation is not restricted to metropolitan cities anymore. Fully sustainable multi-storeyed buildings, fully-secured gated communities, well-designed commercial complexes, and malls are what people from tier-2 and tier-3 cities and towns are also aspiring to adopt. With a hybrid mode of work, there has been a migration of skilled workforce to satellite cities, which has further fuelled demand for Grade A commercial spaces in these cities as well.
The Indian real estate industry has been agile and resilient to meet the evolving requirements and an array of asset classes have been created and are emerging. This positive evolution has further been established with trends having a strong focus on flexibility and catering to specific requirements of end-users and evolving homebuyer demands. Changing demographics, lifestyles, and developing businesses is what has given rise to this segment.
Source: Financial Express (https://bit.ly/3xnf9lJ)