The year 2016 did not turn out to be very promising in terms of growth in the Indian real estate market, apart from the good news of new party taking control over the government which promised to take action for the revival of the real estate market and construction industry. The plans have been made for creating smart cities and modification of the FDI laws for greater participation of foreign players is already in place.
The plans have been made for creating smart cities and modification of the FDI laws for greater participation of foreign players is already in place.
During the major part of the year 2016, the market had been stagnant to a large extent. The promises and plans of the new government will definitely yield a better result in the coming years. The stagnant and overly priced market has led the companies and people to invest in small towns and tier II cities.
The trend has already begun with big IT companies shifting their office from Mumbai to Pune and suburbs of Bangalore and Chennai. Smaller towns and cities will be the main region of development given the government’s plan to set up 100 smart cities on the line on foreign countries.
Metropolitan cities are lacking in land availability and the price of the land is very high to be considered as a good business proposition.
There is an increasing demand for commercial real estate space due to growth in IT and ITES, manufacturing, financial services and consumer goods industry. So the companies are increasingly looking to smaller cities. The Smaller town offers lower land price, labor cost, and operating expense. The physical infrastructure us gradually developing along with public amenities, health care facilities and security.
Even the cost of living has gone very costly for people living in metro cities while the level of basic amenities is constantly degrading. Small cities offer cheaper living and better quality of life.
They are also being considered by the NRIs as their favored destination for permanent settlement.To know more visit www.propknack.com