With better growth rate and existing lower property prices, tier 2 cities have become more profitable destinations for property investments. Due to many reasons property investments in such cities are more profitable and preferred now.
The tier 2 cities of India now offer better returns to the investors and so the property investors of India prefer tier 2 cities to metropolitan cities. The property investments in such cities are showing an upward move while the same is showing a downward growth in the major cities.
There is no doubt the developing areas offer comparatively higher returns to the investors. Those cities which are noted for better and faster growth are always highly demanded by the investors.
The investors looking for higher returns always look at these smaller cities in place of bigger cities such as Delhi or Mumbai. These bigger cities are not capable of delivering better returns to the property investors. On the other hand the smaller tier 2 cities offer better returns and so are more preferred by them.
There is a normal term that property prices are determined by the job generation capacity of the city. Yet in figures of number of jobs also these cities are developing. They too create better job opportunities. The cities like Gurgaon or Pune grew as they also provided vast job opportunities to the people who migrated to these cities from rural areas.
As the population increases the demand for housing units also increase. As a result the builders are prompted to increase the supply. Population growth necessitates improved commercial infrastructure and better commercial spaces. So there is a good possibility for the business to grow and flourish in these cities.
The cities like Bangalore and Chennai grew along with the IT expansion. Pointing to the Expansion policy of Wipro, JLL India’s CEO Om Ahuja said that the IT expansion is really a boost for these cities to grow.
The existing lower property prices in these cities assure the investors that they can reap a bountiful of returns. So in short the existing lower property prices act as a boost for the investors to shift their property investments scheme to the tier 2 cities.