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- Commercial boom leading to development of Tier II cities
Commercial boom leading to development of Tier II cities
Yes, Commercial real estate can be considered as a pillar of India's economic and real estate boom. Though they are mutually interdependent on each other.
As Indian real estate is experiencing an overall growth in all sectors like IT,ITEs BPO, Manufacturing, Healthcare, Hospitality amongst others; this has created a shortage of space in the commercial real estate sector. It is estimated that the demand for space by the IT/ITES sector alone is expected to be 150 million sq.ft by 2010.
The demand for commercial land in metro cities like Delhi, Mumbai and Chennai is huge and prices for the same have shot up to huge proportions. These cities are expanding in a huge manner to accommodate the ever demanding requirement for land. Thereby, expanding to nearby cities now designated the Tier II cities.CommentQuote0Flag
- Tier II cities has more potential?
Tier II cities has more potential?
Do you mean to say that Tier II cities like Hyderabad, Pune, etc have more potential for commercial real estate investments?
For example, a report says that Bangalore which is considered as the IT capital of India, is already short of land and is expanding to create something called Greater Bangalore.
Do the Tier II cities also offer opportunities for commercial retail space investments as in the metros?CommentQuote0Flag
- Tier II cities the next commercial retail destination
Tier II cities the next commercial retail destination
Your inquisitiveness is quite justified Kevin. But the booming economy has been a boon for the tier II and Tier III cities. Reports say that 35% of new retail space will come up in the next 2 years in Tier II and Tier III towns.
Check this piece of news. This says it all......Tier II cities or the so called small towns in the recent times are becoming increasingly popular among the investors as the modern retail format fever spreads across the country.
According to the international property consultancy firm Knight Frank, 35% of the new retail space being developed in the country is in about 50 Tier II and Tier III towns with an expected to have 41.4 million square feet of modern retail space in next two years.
Besides, in the small towns the involvement of consumer at malls is far greater than at the big towns.Also with the increase in the number of people with high disposable income group and lack of diversified avenues of entertainment at small towns, malls become the biggest entertainment and hangout place.
The NCR with Tier II and III cities like Gurgaon, Noida and Ghaziabad would alone be garnering 22% of the new retail space coming up in the next two years, while Mumbai would follow with 15%, the Knight Frank report said.
Modern retail in India is still at a nascent stage as it is only 3% of the total 1 million core retail market of the country.So far the revolution has been restricted to the seven major cities of the country - the metros. Knight Frank in its report says that Tier I cities will also get 65% of the new retail space coming up in next two years.
Out of the total 361 mall projects that are under construction currently,
# 227 are in the top 7 cities,
# while the rest 134 are distributed over various Tier II and Tier III towns.CommentQuote0Flag
- Pune Tier II City is a hot IT Destination
The primary reason for Tier II cities of India to be destinations for IT/ITES operations is quite simple. Tier II cities offer cheaper infrastructure and cheaper manpower as compared to Tier I cities. Further IT companies have reached Critical Mass in Tier I cities and feel that a fresh manpower base needs to be created in a different location.
Example- Pune is a classic case of Tier IIA city, this is possible due to its proximity to Mumbai also Pune has a student base of 110,000 students graduating every year.
- What's targeting Pune real estate?
What's targeting Pune real estate?
Its great news from Pune. :)
I've always heard about Pune as the 'cultural capital' of Maharashtra but its nice to know about its real estate potential too.
But I'd like to know what influences investors to buy and invest property in Pune. Are there enough opportunities to lure people into Pune?CommentQuote0Flag
- Commercial real estate in Pune
Maurya is right. :)
Pune is fast developing into an investors paradise. A few years back when i was staying there as a student, the scenario was not so.....
Pune has a student base of 110,000 students graduating every year
As Maurya quotes it was more popular as 'the oxford of the east'. But I too have heard that the commercial real estate sector is at its boom now....
Is it more of retail or office space.... I wonderCommentQuote0Flag