National Housing Bank’s latest Residex housing price index indicates that Tier-II and Tier-III cities have noticed the highest rise in realty rates, which makes it a perfect time for price concerned buyers to invest in these smaller cities.
The highest QoQ boost in realty rates was observed in Bhubaneshwar with a 11.7 per cent increase followed by Visakhapatnam at 10.9 per cent. Mumbai ranked eighth with a rise of 3.7 per cent, while other metros of Bengaluru, Chennai and Delhi did not make it in the Top 10 of the index. Chennai and Bengaluru saw a slight increase of 1.5 per cent and 1 per cent respectively. Delhi and Kolkata, on the other hand, saw a decline in their housing rates.
One factor for the growth of small cities is saturation of economic growth and a contraction of construction opportunities in metros. Smaller cities on the other hand are observing fast-paced infrastructure development, which is not going unnoticed by big developers and players, further enhancing appreciation. Poddar Housing is also reportedly looking at expansion in four Tier-II and Tier-III cities by 2018.