Tier-II cities set for realty juggernaut: Report
BANGALORE: Real-estate action in India is increasingly moving to tier-II cities. According to a study by real estate consultancy Jones-LangLaSalleMeghraj (JLLM), a new set of hot spots in the realty market include cities like Vizag, Vadodara, Dehradun, Indore, Nashik, Guwahati, Chandigarh among others.
According to the report, the reason for this state of flux is that the real estate boom is causing many of metros and even some of the previously popular tier-II towns to saturate at an incredible pace. It states that IT companies , who are now the primary drivers in Indian real estate market, are not dependent on central business locations.
“The crux of the whole outsourcing boom is that it makes more sense for foreign-based companies to offload back-office functions and even serious research processes to India than to undertake these in situ. However, what would necessarily be a CBDbased business function in, say, the United States, can be a non-CBD dependent function in India.
After all, both sellers and final buyers of IT-based products and services are based abroad anyway,” the report states. Which means the IT / ITeS companies can operate from anywhere in India as long as they have access to skilled manpower and other necessary resources.
“IT /ITeS companies catalyze every other sector of real estate wherever they go, so the retail, residential and infrastructure sectors soon start perking up in those localities. The fact that such companies can benefit from the advantage of cheaper real estate prices in smaller towns has led to the tier II/III city boom,” said JLLM chairman & country head Anuj Puri.
1 comment:
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