Over the last two decades, real estate sector of India has seen tremendous development. Apart from the highly developed metro cities, the suburbs have now become keys of India’s realty growth. Locations that were not even taken notice of a few years back, have now become primary destinations for property investment. So what is driving the country’s real estate market to the suburbs? Why do these off-radar cities now rank on the top of investors’ priority lists?
The main reason behind it is the unbalance between demand and supply of real estate in metro cities. Everyone wants to shift to the cities that offer innumerable growth opportunities. In search for a better lifestyle, thousands of people migrate to metro cities like Delhi, Mumbai, Bangalore and Chennai. The burgeoning population has put pressure on the city’s’ property market. The best residential locations of the cities have already been occupied and the new home-buyers will have to choose from the few locations left in the city, also at a higher price.
So, the developers have to cater to the needs of young professionals who are looking for homes near work locations at affordable rates. This is where the suburbs come into play. Ample availability of developable land, rapid growth of supportive infrastructure and lower land prices set up the best scenario for real estate development. Once the premium locations of the city get saturated with properties, the market extends to the areas adjoining them. Thus these suburbs become an extension of the existing developed locations.
Another reason is boom in the IT and ITeS Sectors. Velachery in Chennai and Whitefield in Bangalore are the two existing examples of how IT sector completely transforms the face of suburban localities. These were ignored deserted locales but as the IT giants chose these to set up their empire, they became the most sought-after locations. Other commercial developments also call for a rise in residential property demands.
Connectivity is also an important factor. The locations that are close to the airport are the first to witness real estate development. As the locality grows, the government also supports it with roads, highways and flyovers. As the metro started connecting to the outskirts of Delhi, the areas started seeing commercial development. And now the same outskirts have become commercial hubs like Noida, Greater Noida, Gurgaon and Faridabad. Real Estate Property in Faridabad and Greater Noida are on all times high.
Real estate is targeted at the investors as well as end users. To cater to the needs of end-users, developers come up with township projects in the suburbs and projects that offer all modern amenities. Suburbs of metro cities are also a paradise for the investors. They make huge returns on their investment when the completed projects are eventually supported by all civic amenities and proper connectivity. If you have already invested in a suburban locality, hold on to it and wait for the right time to make profits out of it.
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