With a large number of projects launched by organized players like Rajdarbar Group in Tier 2 cities, the opportunities galore for investors to bolster their investment portfolio
At a time when the institutional investment in Indian real estate is estimated to grow by 14.6 per cent to Rs 396 billion (as per Colliers International India), the organized players in Tier 2 and Tier 3 cities are brimming with confidence. One of the important factors behind this change in stance is the reverse migration and the rising interest of realtors and investors in rural and small-town real estate.
One of the leading and integrated realty developers in the country, Rajdarbar Group is backing smaller cities to override the volatile real estate markets in the big cities by undergoing a massive transformation to witness a higher growth trajectory. Radhika Garg, a part of the Board of Directors at Rajdarbar Group, is upbeat about the prospects of Tier 2 and Tier 3 cities with global investors keenly observing the recent developments in the real estate sector.
The demand for buying and renting properties in smaller cities has been rising due to the growth prospect and unperturbed potential of such regions. The restricted scope of big cities in the wake of uncertain situations has further tilted the pendulum in the favor of Tier 2 cities. Moreover, the recent developments in the year 2020 have changed the mindset of those living in the urban areas due to the higher sickness levels, difficulties in accessing basic necessities and limited space. According to a report by Redfin, there was a massive change in the page views of homes in rural and small towns due to the ongoing pandemic in the year 2020.
Apart from this, the increased absorption of workforce in the real estate sector in rural areas is a testament to the shift in focus. Rural road constructions, incorporation of massive business establishments and increased employment opportunities are heating up the demand in smaller cities. Many reports have also estimated the demand for real estate properties to drop as much as 50 per cent in the big cities with changing real estate fundamentals.
As a result, cities like Agra, Meerut, Karnal, Hisar, Amritsar, etc, are experiencing great traction across the country. With a large number of projects launched by organized players like Rajdarbar Group in Tier 2 cities, the opportunities galore for investors to bolster their investment portfolio. The trend is expected to speed up, as the process of Covid-19 unlocking gathers pace, along with the massive rollout of vaccines across the world.