The domestic real estate is bracing itself for a very new post-Covid-19 world. One significant trend may be reverse migration spurring housing demand in tier-II and III cities, according to the latest report by real estate consultancy firm Anarock Property Consultants.
According to Anarock’s report titled ‘India Real Estate: A Different World Post COVID-19‘, currently, the top seven cities account for almost 70% of the country’s residential market, with the remaining 30% accounted for in tier-II and III cities. This ratio may well change in times to come.
The cities like Lucknow, Indore, Chandigarh, Kochi, Coimbatore, Jaipur and Ahmedabad would be the main beneficiaries of the reverse migration of professionals who have lost their jobs in the metros or are likely to. These returnees will benefit from the cost of living and superior infrastructure that many tier-II and III, the report reveals.
“The reverse migration is already very visible among migrant labourers, and this trend can further percolate to skilled professionals who have been or may be off-rostered. The smaller towns and cities would consequently see a spurt in housing demand. The primary demand may skew towards rental housing – purchase demand would initially come from local investors keen to meet the rental demand. Many NRIs will also return to India amidst dwindling job prospects, particularly in the US and European nations which account for nearly 70% global cases. For them, the top seven cities would be the best options but many will consider smaller cities where they can be close to their families. Finding suitable employment for reverse-migrating Indians in smaller cities may prove to be challenging,” Anuj Puri, chairman, Anarock Property Consultants says.