The Indian realty market is currently in its transition phase from lockdown to gradual stages of Unlock, the developers are in the process of comprehending changing buyer’s trends and property investment phenomenon.
The standstill period introduced in the past as a preventive measure could only result into a stagnant economic curve, but fortunately, the adoption of digitalization and government’s relief packages made the situation bearable to a certain extent.
COVID-19 induced lockdown due to its home confinement, strengthened the emotion of having a property under your name. It made owning a home the most valuable asset. This particular asset promises stability, long-term ROI, and most important of all safety and security to your family in difficult times like these.
This is the reason why the exodus of migration was witnessed in working professionals from metros to Tier II and Tier III cities. The urge of staying close to your family brings immense contentment, and there is absolutely nothing that can surpass it.
Reverse migration when it is considered in terms of the Tier II cities involves two categories of buyers- NRI’s and migrant professionals from metro cities. Other factors which make small cities an attractive hotspot for realty investments are the good financial returns.
Price points in these realty markets are comparatively lower than the metro cities, leading to greater advantage in income tax rebate coupled with the benefits of Pradhan Mantri Awas Yojna (PMAY) subsidy benefits.
With people moving back to their hometowns in smaller cities due to Covid-19, it is not just the demand of the housing segment that will be on the rise but, the commercial segment is also slated to grow. The demand for office and commercial space will rise to accommodate the newly settled residents. NRI investors would be more than willing to allocate their funds for these cities, where developments will grow in the coming years.
Some of the Tier II & III cities are even in the process of being turned into smart cities, under Govt’s smart city mission. This will transform the infrastructure landscape of towns and facilitate better connectivity. Making the peripherals of Tier II and Tier III cities ideal realty hotspots for futuristic projects.