Tier-2 Cities will rule property market in future: If you also think that buying a house is now a game only for big cities, then this report will change your perspective. India’s real estate sector is going to become the backbone of the country’s economy in the coming two decades. According to the latest report of Colliers-CII, India’s real estate market can reach 5 to 10 trillion dollars by 2047. At present this figure is around 0.3 trillion dollars. The report suggests that by 2047 this sector can contribute 14 to 20 percent to India’s GDP. This means that in the coming times, real estate will become the biggest means of not only building houses but also building the country and its benefits will not be limited only to metro cities like Delhi or Mumbai, but will be seen in cities like Lucknow, Jaipur, Dehradun, Chandigarh and Indore.
Expressways and infrastructure will become the real heroes of real estate growth.
Harleen Kaur, Deputy Secretary, Union Ministry of Road Transport and Highways, says that expressways and industrial corridors in India are not just a network of roads, but they are corridors of development. Due to this, the center of economic activity of the country is moving from metro cities to tier-2 and tier-3 cities. In the coming times, only those cities will progress fastest, which will be ready in terms of connectivity and industrial infrastructure.
Real estate developers believe that India’s growth engine will no longer be limited to Delhi, Mumbai or Bengaluru. Due to expressways, airports, industrial belts and new smart cities, investors are now eyeing cities like Lucknow, Jaipur, Dehradun, Indore, Chandigarh.
Sanjay Sharma, Director, SKA Group, said that the real estate sector in India is no longer just a game of metro cities. Due to better infrastructure, government reforms and increasing income, the demand for housing is increasing across the country. In the coming years, the real engines of growth will be those cities where connectivity is strong and people’s lifestyle is changing rapidly. This is a golden period for real estate.
Sikka Group Chairman Harvinder Singh Sikka said that government policies and infrastructure investment have given new life to the real estate sector. The growth we are seeing today is not just a story of rising prices, but of improving standards of living. By 2047, many small cities of India will provide global level facilities, where people will live, work and invest.
Kushagra Ansal of Ansal Housing said that real estate is no longer just a property business, it has become a sector that decides the economic direction of the country. In the coming time, demand will increase in all segments like housing, commercial and industrial. Luxury housing will also expand rapidly in tier-2 and tier-3 cities. One Group Director Udit Jain says that India is moving towards becoming the world’s third largest economy by 2047, and real estate will play a major role in this journey. Better connectivity, green housing and technology based projects will be the real identity of this change.
Employment and investment possibilities will increase in small cities
The report shows that in the coming times, small cities will become new centers of employment and industry. Expressways and industrial corridors have connected these cities to big markets, which will provide tremendous benefits not only to real estate but also to sectors like manufacturing, logistics and retail.
The report says that along with real estate sectors like residential, office, retail, industrial and warehousing, there will also be growth in emerging segments like housing for senior citizens, co-living and data centres. Most of these trends are being supported by government reforms, rapid urbanization, demographic changes, infrastructure investments and technological innovations. All these factors together are creating a multiplier effect, which is not only increasing employment but also attracting institutional investment in real estate and opening new avenues of growth across the country.
Biggest impact on residential sector
The biggest impact of rapid urbanization and changing needs of people will be seen on the residential sector. At the same time, commercial and industrial sectors will directly benefit from better infrastructure-based connectivity and digitalization.
