The Indian growth saga is no longer just limited to big metros, as many tier II and III cities are moving up the curve, fuelled by a surge in liveability, growth in infrastructure, and improvement of the overall business climate. The gap between larger metros and their smaller counterparts is narrowing down gradually, with smaller cities consolidating their position as regional growth engines.
Affordability of prices, attractive rental yield and reverse migratory trends during the pandemic are also fostering growth in these markets. Mentioned below are some of the new up-and-coming real estate markets in India.
Faridabad: Located equidistant from Gurugram and Delhi, the Faridabad real estate market is witnessing a windfall. Once a satellite town to Delhi, Faridabad is now becoming mainstream. Over the past decade, large-scale, as well as mid-sized enterprises, have flourished here, fuelling the demand for both housing and commercial real estate. Recently, a transit bridge was unveiled on the Yamuna, which reduces the commute time between Faridabad and Noida to about 20 minutes. This will bring Faridabad close to Jewar airport. Faridabad is also strategically linked to the Delhi-Mumbai expressway.
Lucknow: The City of Nawabs, located just seven hours from the national capital, is emerging as a bustling real estate hub in northern India. Accessible from the Lucknow Expressway, Yamuna Expressway, and the Purvanchal Expressway, it is party to a host of large-scale infrastructure development projects. It includes the eight-lane Outer Ring Road, defence corridor, airport enhancement project, the four-lane green belt, and much more. Average property prices in Lucknow range from ₹4,950 to ₹7,000/ sq.ft. with yearly price appreciation to the tune of 8-12%.
Indore: The city of Indore is closely linked to the pulse of the Indian economy. It is traditionally the bastion of textiles, packaged snacks, auto components, and agribusiness sectors. In recent years, small and large IT and technology companies have also mushroomed throughout the city. Indore’s property market will also draw strength from the fact that it has plenty of land parcels available.
Visakhapatnam: A $15.9 billion economy, 55% of the market is run by retail and tourism, while manufacturing and industries contribute 35%. Due to the ample number of PSUs, shipping, and defence establishments, Visakhapatnam always had a cosmopolitan culture, which has also resulted in a spurt in property demand. There are numerous well-established neighbourhoods here with prices in the range of ₹4,000-₹10,000 per sq.ft. There is a significant increased spotlight on Visakhapatnam, with the city becoming the capital of Andhra Pradesh.
The writer is Co-Founder & Director, Adore Group.
