Scenario of the Real Estate Market of Small Towns

The real estate market these days is facing a downturn, thanks to the global economic slump. There has been a seep fall in the demand for houses in all the major parts of India. But during the boom, one could see real estate developers coming up with all kinds of residential and commercial projects in big as well as small cities and towns.
In fact, there have been a number of developers who started focusing mainly in areas where there was no realty development at all. So, these areas are witnessing growth even during the slowdown. From a builder point of view, it is lucrative to invest in these cities because they offer a lot of potential of development and give the builder freedom to explore and develop. From a buyer point of view, it is a good bet to invest in a property in small towns and cities because the property is available at comparatively lesser prices than big cities and when the town / city witnesses growth, there is an obvious increase in the prices.
Besides that, these cities are away from the hustle-bustle of the normal big city life. They provide calm and serene environment which is difficult to find in big cities like Delhi, Mumbai, Kolkata, Chennai etc.
In fact, a lot of people prefer moving to small towns after there retirement to enjoy a peaceful living.
Here’s a brief look at real estate development in tier – I and tier – II cities:-
Haridwar, an attractive temple town situated along the Ganges, has two malls coming up, each of two lakh sq ft in size.
Similarly in Nashik real estate developers are trying their level best to meet the increasing demand by setting up 40 lakh sq ft of commercial and residential space by 2009.
Mangalore, a small city in Karnataka, is witnessing tremendous growth with the proposed Coastal Special Economic Zone coming up. Beginning of international flights has further propelled real estate prospects of the city.
According to a survey conducted by the global property consultant, Knight Frank, the property market has now reached smaller towns and cities in the country like Rishikesh-Haridwar, Nashik, Mangalore, Bhopal, Dehradun, Jalandhar, Amritsar, Bhopal, Rudrapur, Raipur and Trivandrum. These budding growth centres are the ones where rapid urbanisation and improved economic conditions have given a reason for real estate development.
While Trivandrum and Mangalore have some degree of IT infiltration owing to the overflow of demand for IT / ITES space originating from neighbouring established markets, the other cities still do not have much organised office space. But as per the report, the hottest real estate segment that seems to be thriving in all the ten cities is the residential property sector.
Rishikesh and Haridwar in Uttarakhand are usually associated with ashrams. While Rishikesh has become a centre of amusement parks and different kinds of adventure sports, Haridwar is emerging as an important industrial destination in the region. As per the Knight Frank report, the real estate market in Rishikesh has been attracting huge interest from investors belonging to the neighbouring states of Punjab, Haryana and Delhi, as well as from NRI buyers. Healthy environment and second home options have fueled the demand for the residential sector here. While speculation in the market had driven up the residential prices in these areas as well, strict approval norms by the state government and the current market situation have brought stability in the market.
Apartments close to the famous Laxman Jhula are available somewhere around Rs 3,000 to Rs 3,500 a sq ft. The outskirts of Nashik are going through rapid real estate development. Looking at the escalating land prices in Mumbai and Pune, investors and developers are coming up with new projects in Nashik because of its reasonable price range. The city will soon witness about 2.1 million sq ft of residential supply and another 1.9 million sq ft of office space.
Prime locations of Nashik like College Road and Gangapur are available at Rs 2,500 to Rs 3,000 per sq ft. In Jalandhar, Punjab, the growth of the residential real estate market is mainly driven by NRI investment and as a result there is high foreign cash inflow here. As per the report, close to about 20 residential projects by local and national realtors are in the pipeline.

Sukhpreet Kaur writes on behalf of 99acres.com, which is an internet portal dedicated to meet every aspect of the consumers needs in the real estate industry. It is a forum where buyers, sellers and brokers can exchange information. At 99 acres, you can advertise a property in India , search for a property, browse through commercial property and residential property.