The report, presented at the 21st NATCON in Egypt by Cushman and Wakefield, highlights India's urbanization trend, projecting around 36% urbanization in the current year and a target of 50% by 2050. The focus is shifting towards tier-2 cities like Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Nagpur, Surat, Thiruvananthapuram, and Visakhapatnam for real estate growth, as they possess the potential for development. These cities were chosen based on indicators like population, infrastructure, talent pool, income, ease of living, and housing affordability.
While Delhi NCR, Mumbai, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad remain significant real estate markets, these 10 tier-2 cities are poised to contribute significantly to India's growth. Rising urbanization is stressing tier-1 city infrastructure, prompting a shift towards cities with development potential. This shift is expected to play a crucial role in India's economic growth.
The report emphasizes the importance of tier-2 cities in India's economic development and real estate growth. Rising incomes and consumption levels are attracting retail investments to these cities, leading to the development of malls and high streets. The residential sector in these cities is also growing, with a focus on affordability.
Manoj Gaur, Chairman of Credai National, urged the real estate sector to adopt new technologies and be accountable to customers and stakeholders. The report's city selection criteria considered parameters like population, economic strength, and commercial real estate attractiveness.
Tertiary education enrollment, population size, and ease of living were given the highest weight as these factors influence corporate decisions to relocate. Infrastructure and connectivity were also crucial for commercial activity. The study used the Metro Development Index, population growth data, house prices, and GDP per capita to assess the development potential of tier-2 cities.
Cushman & Wakefield shortlisted 17 cities representing various regions of India, considering economic size, market momentum, occupier interest, and on-ground research. These cities were evaluated using parameters like market size, ease of living, infrastructure, talent pool, income, and housing affordability, providing valuable insights for corporate occupiers, retail brands, and potential migrants.
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