subject: Factors That Are Making Tier Ii And Iii Cities Enjoy The Real Estate Boom [print this page] In time of depreciating value of rupee the interest of NRI buyers towards investment in Indian real estate is clearly evident. Recent finding shows that almost 90 percent UAE residents are investing in properties at India and 26 percent NRIs are purchasing the properties as additional investments. This keen interest is a good sign for Indian economy and so government and private real estate developers are taking no chance missing out the opportunity.
Along with the tier I cities they are also recognizing the tremendous growth opportunities for the real estate in tier II and III cities. Crisil research report published for July 2011 expects 10 such cities namely Bhopal, Coimbatore, Jaipur, Lucknow, vadodara, Nagpur, Surat, Vishakhapatnam, and real estate Indore with an estimation of sale of new residential apartments worth Rs.176 billion. Though jaipur and Surat has been the market leaders but cities as Indore, Bhopal, and vadodara are also seeing the light.
Especially when we talk about NRI investments then properties worth more than 1 crore are more zooming in. Reasons behind the interest in India are:
India does not offer citizenship so buying home here is a both an investment opportunity plus a personal benefit of having a home here.
India also has simple norms of NRI investment under foreign exchange.
Metros provide good returns on value of property. Also tier II and III cities as properties in Indore and Surat are providing chances of fast appreciation in view of developments taking place.
Talking in view of tier II and II cities being the hot spot of real estate growth lets see those factors that makes the common buyer buying a property here.
Employment opportunities playing the first big factor. Industry giants of various sectors are coming towards these cities giving huge potential of growth in job sector.
Affordable living and purchasing prices are the next factors.
Development of infrastructures as schools, colleges, air, train and road connectivity.
High returns on property on long runs are the promising factor here.
Proximity to big cities like for Pune its Mumbai, for Indore its Mumbai, for Surat its Ahmadabad, for Coimbatore its Chennai, is also a plus factor.
Industrial and service sector developments.
Overcrowded metro population and traffic congestion is not the case with tier II or III cities.
With more space and land available builders are offering luxury living apartments at pretty reasonable offers in comparison to metro structures.
Above all steady growth and reasonable pricing makes these cities a fine option for real estate investors in India.
