Real Estate Prices Rise in Tier II and Tier III Cities

As property prices in metros see a shoot up, Tier I and Tier II cities have emerged as the most promising market for residential as well as retail developments. Now, these places experience a sharp increase in property prices which has gone along with increased demand. It has shot up by as much as 40% in the past two years which is believed to be the highest as compared to earlier hike descriptions.

The property boom in Tier II and Tier III cities is further fuelled by the factors like opening up of financial sector, rationalization of income tax and loan policies in addition with well-paid IT jobs. However, the rise in prices does not square with the earning capabilities and is being considered as an unhealthy sign in the long run.

The property market is not going to see a slide in price in the near future, says data showcased by various property surveys.

Tier II cities including Jaipur, Kochi, Pune, Nagpur, and Chandigarh have become common hunting ground for ITes companies, reveals a study conducted by recent Nasscom-KPMG.

Recently, in cities like Meerut and Jaipur, pre-launch projects are being sold in between Rs. 2,400 and 4,500 per square yard as compared to Ambala, where it starts at Rs 3,000 per square yard.

Nowadays, a person interested to purchase a flat in developing cities like Ahmedabad needs to spend out about four times the money it had been few years ago. The cost of a BHK flat in Ahmedabad has risen to Rs 31 lakh whereas it used to be Rs 8.5 lakh two years ago. The difference itself speaks for the changing trends.

The value of land in the areas like Nagpur, Nasik, Ludhiana, and Punjab will rise manifold in the coming days. Ahmedabad, that is, tier II city is soon going to be regarded as fast flourishing metro. As for the development in Gujarat, it is not city-centric, but spreads across the state. Therefore, there is more room for development in the state.

Source: http://www.indianrealtynews.com

Earlier, it was metro cities experiencing the property boom. Now it is tier II and tier III cities following the same trend? Will this boom slowed down from its red hot pace or Should a common man give up on owning a home?
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