The real estate industry in India has grown dramatically in Tier 2 and 3 cities, owing to infrastructure development and enhanced connectivity. The increased demand for affordable housing, fuelled by rising real estate prices in major cities, has prompted real estate developers to expand their presence in these areas.
Tier 2 and 3 cities are seeing considerable increases in real estate development owing to infrastructure upgrades, large firms looking for inexpensive space, and improved connections via new roads, trains, and quick rail travel.
Omaxe Ltd. President Avneet Soni emphasizes the increasing demand for integrated residential areas such as townships and group housing in major cities. These developments include a wide range of amenities, including considerable green space, a club, and a swimming pool.
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What the Authorities Have to Say About the Townships?
According to Avneet Soni, President of Omaxe Ltd., the COVID-19 pandemic has emphasized the significance of community living, showcasing the appeal of integrated residential spaces with ample open areas, in-house facilities, and enhanced security. These factors have contributed to the widespread popularity of such developments among a diverse range of individuals.
Major Initiatives by the Central Government
The formation of the Urban Infrastructure Development Fund (UIDF), announced in the Union Budget 2023-24, demonstrates the Indian government’s priority on infrastructure development in Tier 2 and Tier 3 cities. The National Housing Bank manages the UIDF, which aims to assist governmental agencies in developing urban infrastructure in these cities.
This programme not only provides considerable opportunities for the real estate market, but it also increases the possibility for growth in these locations. According to Radheecka Rakesh Garg, Director of Rajdarbar Realty, the government’s dedication to promoting infrastructure development would contribute to transforming Tier 2 and 3 cities into booming real estate destinations.
Inside Deeds About the Initiative
The ongoing improvement in infrastructure is a crucial component influencing the attraction of these cities. The government’s emphasis on constructing road networks, trains, and other transit modes has considerably improved connectivity both within and outside of major cities. Infrastructure advancements have expedited the transportation of products and services and enhanced accessibility for businesses and individuals.
Furthermore, the rise of industries in Tier 2 and Tier 3 cities has driven their economic growth. Companies progressively establish industrial units, service centres, and offices in these locations as they strive to diversify their operations and penetrate new markets. This invasion of industries has a knock-on impact, creating job possibilities and encouraging economic activity.
Tier 2 and Tier 3 cities in industrial corridors have considerable potential for economic growth and real estate development, according to Tejpreet Singh Gill, MD of Gillco Group. These cities are appealing investment destinations and support the development of new start-ups because they have enhanced infrastructure, expanding industries, affordable locations, and more job prospects. As a result, Tier 2 and Tier 3 cities are becoming the next areas of growth, offering exciting opportunities for the Indian real estate industry.
The Urban Infrastructure Development Fund (UIDF), endorsed by Prateek Mittal, Executive Director of Sushma Group, emphasises the Indian government’s priority on infrastructure development in Tier 2 and Tier 3 cities. Due to the focus on urban infrastructure, people’s choice for an integrated lifestyle, and the amenities offered by townships, investments will be encouraged, leading to a rise in the market for real estate.
End Thoughts
These elements have made townships more popular among investors and homeowners in Tier 2 and 3 cities. Townships are becoming the next areas of real estate expansion due to the government’s commitment to enhancing infrastructure and providing a wide range of facilities inside gated communities.
