The present economic and medical conditions have adversely affected the Real Estate sector throughout the country.
The long spent lockdown in the native places has made people so much connected with their roots that they have shifted their preferences from residing in top metropolitan cities to tier 2 cities. The soothing and green atmosphere made the public make this shift as compared to densely packed cities with the hustle and bustle all around.
Also, another reason for this shift is the changing work culture. Work from home has benefitted the companies and the working individuals so much so that a sudden rush has arisen in the tier 2 cities amidst the backdrop of coronavirus. The low cost of living, better work-life balance and reasonable property rates have made the decision making easier for moving to tier 2 cities.
Such shift raises a question as,
What will be the trends for Real Estate in 2023?
As the year 2021-22 suffered unique trends in the real estate sector and the economy as a whole, similarly, the reverse migration happening from metropolitan and Tier 1 cities towards Tier 2 cities have raised the property demands in the latter cities considerably.
Reverse migration is the process where the labourers and the working class return to their native places in the backdrop of unavailability of employment and shelter. The effect of reverse migration can be attributed to the following causes.
Reasons for reverse migration
- Change in work culture
Companies adopting work from home policies amidst the Coronavirus breakdown has made the people spend more time in their home. This has aroused a need for spacious and comfortable housing with all the amenities. Tier 2 and Tier 3 cities have experienced this a lot in the pandemic era.
- Centre and state infrastructure projects
Infrastructure projects such as AMRUT ( Atal Mission for Rejuvenation and Urban Transformation ) schemes and many others have encouraged social and cultural development in Tier 2 and Tier 3 cities. Such developmental activities excite the real estate developers and investors to develop more residential and commercial projects in tier 2 and 3 cities.
- Economical rates
Apart from the technical aspects, looking at the economic side of the equation, house and property rates in tier 2 cities are much more economical and affordable as compared to Tier 1 cities. A potential butter can find a house with the same dimensions at much lower rates in a Tier 2 city than Tier 1 city. This may lead to a major demand for the properties in the ongoing year.
Owing to such causes, it is believed that the demand for properties will increase in the second half of 2021 with better employment opportunities and residential structures.
Witnessing such a spike in demand, the investors are favourable about the promising returns and opportunities that this year will bring about.
This shift has alerted the Indian Real Estate Developer towards the high potential and much-ignored tier 2 real estate market.
Here’s what experts have to say regarding the Real Estate trends in 2021
Deepak Gordia, Vice Chairman and Managing Director of Dosti Realty, believes that ” The buyer’s preference for a change in location is fuelling property demand in the peripheral locations of cities today”.
Aditya Kushwaha, CEO and Director of Axis Ecorp, has stated that the Covid 19 has altered the way we live, work, learn and play. He further comments that ” The Investors believe that they can find better entry prices, flexibility, and sizable returns in such ( Tier 2 ) locations this year”.
Adhering to such promising and encouraging views by the experts, the real estate trends in the year 2021 seems to be providing positive returns through both demand and supply sides.
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