Growing Demand in Smaller Cities Attracts Big Real Estate Players
New Delhi: The Indian real estate market is witnessing a significant shift, with growing demand for homes in smaller cities across the country. This trend is catching the attention of major real estate developers, who are now diversifying their portfolios to tap into these emerging markets.
Estimated Residential Development
- Cities Involved: Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow, Nagpur, Surat, Vadodara, and Visakhapatnam
- Projected Residential Development: Approximately 354 million square feet over the next three years
Key Developers Already On Board
- DLF
- Unitech
- Parsvnath
- Omaxe
- Ansals
- Emaar MGF
Driving Factors for Growth
- Price Stability: These cities offer more stable pricing compared to metropolitan areas, making them attractive for both developers and buyers.
- Growth Prospects: The economic activity in these cities is picking up, leading to increased migration from smaller areas. This, in turn, fuels the demand for more sophisticated housing options.
- Shift Towards Apartment Culture: As economic conditions improve and more people move to these cities, there's a noticeable shift towards preferring apartment living over traditional housing, which will likely increase volumes for larger developers in the future.
Financial Institutions Take Notice
- Banks and financial institutions are also showing interest in these cities, aiming to bridge the financial gap and capitalize on the emerging demand for housing finance in these growing urban centers.