Tier II and Tier III are smaller cities as compared to the metropolises. These are the cities with populations of one million and less than a million respectively. Tier II are regional hubs such as state capitals or industrial areas like Pune, Dehra Dun, Cochin. Tier III cities are minor cities like Nasik, Baroda, Madurai, etc. that are just beginning to wake up and take form.
Congestion in big cities has pushed people and industries towards smaller cities. Hence Tier II and III come into play and are the future of real estate. Tier II and Tier III cities come with a myriad benefits. Governments also play a major role in the development of these small cities. The channeling of investments by major building houses is because of affordability and availability. Properties are easily available and at affordable prices. One can buy real estate property in Dehradun, Lucknow, Baroda and Pune at rates more affordable than their metropolitan neighbours.
The government also offers incentives to builders and developers with infrastructural facilities, building management and creation of SEZs and thus developing these small cities. The Congenial Factors necessary for setting up Corporate Infrastructure are readily available. Investment companies are moving towards these smaller cities and are trying to convert them into business havens.
Infrastructure and Manpower also play an important role in the development of these cities. Due to the lack of space management and exorbitant prices, metropolitan cities are taking a backseat. Companies are more attracted to smaller cities where good infrastructure, state of the art construction and office spaces are wooing a lot of companies. The state government and the local government bodies are also keen on development and offer maximum help to investors, making things easy.
Real estate is booming in some small cities as housing is affordable. There are more open spaces; job opportunities as more companies are moving here. Infrastructure is good as these cities are competing with the bigger cities and all the facilities are available here. Cost of living is also cheaper. Investors, NRIs and end users are more interested and inclined towards the smaller cities as they prefer to live in low density areas and instead of living in vertically growing structures they prefer to live in something which is sprawling.
The future of real estate in these small cities is good because of various positive and congenial factors, like availability of property at reasonable rates, government’s positive approach, easy availability of manpower and the mindset of the new buyer/investor. The development of such cities pushes India up in international arena and has a positive effect on economic growth and development.
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