The demand for real estate, particularly residential properties, and to a certain extent, industrial corridor in smaller cities and non-metros is expected to rise. This is a result of the Smart Cities Mission and development of industrial corridors and expressways. Also, government initiatives including AMRUT (Atal Mission for Rejuvenation and Urban Transformation) are likely to improve the live-ability of Tier-II and Tier-III cities.
While development of industrial corridors are leading to urbanisation growth in Tier-I and Tier-II cities, 89 per cent of the proposed Rs 48,000 crore – as part of the smart cities plan – invested in the first 20 cities are being earmarked towards urban development, housing, transformation, water and energy.
Eleven cities including Bhubaneswar, Chandigarh, Coimbatore, Indore, Jaipur and Kochi are considered as high growth cities with several national developers preparing to set their footprint here. These chosen cities exhibit a strong potential in terms of economic activity, current and proposed infrastructure developments and expected government and private investments. This growth is also opening a new window of opportunities for global companies to look beyond Tier-I cities.
As Getamber Anand, President, CREDAI, has reportedly said, “There is a need for developing alternate urban economic centres in India as the Tier-I cities may soon be exhausted in terms of infrastructure to be able to support the expected or desired growth of India.” Similarly, Anshul Jain, Managing Director (India), Cushman & Wakefield, has said, “These non-metros are poised to become the next growth centres owing to their inherent strengths, government initiatives and attraction of foreign and private investments, albeit over five to seven years.”