With property rates reaching record highs in Tier I cities of Delhi, Mumbai and Bangalore, the emerging cities in the Tier II and Tier III segment have been identified as the new growth centers for real estate markets in India.

Of late, these cities have caught the attention of real estate developers and a number of projects in both the segments of commercial and residential are underway.

Subsequently, the retail industry at these cities is also developing fast with improving business environment and rising income levels. As per the industry reports, more than 35 per cent of the total space required by the retail sector will come up in these growing markets, in the years ahead.

Tier II cities—Hyderabad, Chennai, Pune and Kolkata—are the ones that have already set themselves on the trajectory of rocketing real estate development, and are witnessing unprecedented activities, in terms of size and volume of deals.

Besides, Tier III cities—Chandigarh, Lucknow, Ludhiana, Jaipur, Ahmedabad, Guwahati, Surat, Nagpur, Goa, Mysore, Coimbatore, Visakapatnam, Kochi, Vijayawada, Mangalore, Trivandrum and Baroda—is where a large room for growth exists.

After all, the emerging markets are known for their high-growth potential and these cities too have all the reasons for making a sound real estate investment decision.

Advantage of cost is the biggest factor that makes these cities a preferred destination for business and real estate activities.

At times when capital values at metros go as high as Rs 35,000 per sq ft, prices in these cities are seemingly moderate between Rs 200 and Rs 12,000 per sq ft.

Similarly, the cost of operating business is also lesser than that of big cities. Rental values are proportionate with the capital prices. Manpower is cheap owing to the low cost of living in these cities.

Perhaps, that’s why, almost every IT and IT enabled Services (ITeS) company is enthusiastically setting up its centers in these towns. Nevertheless, these places are already on the radar of retail giants and other corporate conglomerates.

Sufficient availability: Options. These markets delight you by offering numerous alternatives for buying real estate. With a number of construction projects under progress, there is sufficient availability of options, be it commercial obffice space or residential house or apartment.

In Tier III cities, you get a 2,000 plus sq ft of luxury duplex bungalow or a villa at a cost between Rs 15 lakh and Rs 30 lakh, whereas in bigger cities, a small-size flat would cost you anywhere above Rs 15-20 lakh.

Congestion-free environment: Against the polluting environment, traffic jams, shortage of power and water, and choking civic systems at metropolitans, Tier II and III cities offer a pleasant professional and personal life.

Social Network: People in smaller cities remain under social-connections with each other. A large number of professionals also now prefer to return to their hometowns to spend rest of their lives with their closed ones.

As evident in cities of Punjab and southern part of the country, the Non Resident Indians (NRIs) are also coming back in large numbers.

Brain Gain: Combination of aforesaid factors has been translating into a soaring housing sector. On the other hand, influx of knowledge professionals in these cities is accumulating far reaching benefits to the local economies.

Given the ongoing trends, the real estate markets at emerging cities promise a bright future. Government policies are favorable and the allied infrastructure projects for capacity-expansion in power, physical and digital connectivity, and other civic amenities are going on at considerable pace. And, thus great times are ahead…