Mumbai: Demand for real estate, particularly residential properties, in smaller cities and non-metros is expected to rise powered by the Smart Cities Mission and development of industrial corridors and expressways, a report said.
According to the report by real estate body CREDAI and property consultant Cushman & Wakefield released Thursday, initiatives such as Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation are likely to improve the liveability of tier II and tier III cities.
On a pan-India level, housing demand in urban areas is expected to be nearly 12 million units during 2016-20, the report said.
The report also pointed out development of industrial corridors as an important factor in dispersal of urbanization to tier I and tier II locations. Smart cities programme will provide opportunities for the real estate sector as 89% of proposed Rs.48,000 crore investment in first 20 such cities would be earmarked towards urban development, housing, transformation, water and energy.
“There is a need for developing alternate urban economic centres in India as the tier I cities may soon be exhausted in terms of infrastructure to be able to support the expected or desired growth of India,” said Getamber Anand, president– Confederation of Real Estate Developers’ Associations of India (CREDAI).
The report identified 11 cities including Bhubaneswar, Chandigarh, Coimbatore, Indore, Jaipur and Kochi as potential high growth cities, which could see the entry of many national developers.
“These chosen cities exhibit a strong potential for development basis the economic activity, current and proposed infrastructure developments and expected government and private investments. They also present myriad opportunities for countries and global companies enabling them to look beyond tier 1 cities,” the report said.
Anshul Jain, managing director (India), Cushman & Wakefield said these non-metros are poised to become the next growth centres owing to their inherent strengths, government initiatives and attraction of foreign and private investments, albeit over 5-7 years.
In the metros, a few hubs likely to witness higher activity over the next few years include North Bengaluru Belt, Chennai, Gachi Bowli in Hyderabad, New Town in Kolkata, Navi Mumbai and pockets of Pune due their proximity to commercial centres and relatively affordable homes.
[Source:- Live Ment]
