As India witnesses reverse migration from the Gulf into the country and within from the metros to smaller cities, some real estate players feel that the situation could boost the demand of housing in tier-II and III cities:
“Acceleration in Demand Seems Certain”
With reverse migration, the rise in demand for homes in the post-Covid scenario is likely to be seen in integrated townships due to the controlled living environment they offer to its residents. “The reasonable land prices, scarcity of organised living options, and migration of working professionals are some of the reasons that could reignite demand in cities such as Lucknow, Chandigarh, Ludhiana, and Indore. With home loan interest rates at their historic low and government subsidy to home buyers, the acceleration in demand seems certain,” Mohit Goel, CEO, Omaxe Ltd says.
“Affordable Housing most Attractive”
Pradeep Aggarwal, founder & chairman at Signature Global; and chairman at ASSOCHAM National Council on Real estate, Housing & Urban Development, views that the increasing reverse migration to tier-II and III cities due to the lockdown and dwindling job prospects in the metros will present affordable housing as the most attractive option for living. “The buyers can think about buying these properties and not just renting it due to its affordable price range coupled with a series of amenities offered in them. The NRIs returning to India will also be staying in these houses until international travel becomes safer.
“Will Call for Organised Housing”
In the coming years, market consolidation is expected with the increased preference for branded developers. Organised housing will become an essential need that can promise wellness and holistic growth for people residing in it. “The scenario of reverse migration to tier-II and III cities will be creating demand for these structured units due to the need of people wanting to stay close to their hometowns, and the uncertain job prospects for NRIs who have returned to India. The cities like Karnal, Amritsar, Yamunanagar, Indore, and Meerut would be some of the main beneficiaries of the pattern. The trend will be setting up the process for driving investors to tier-II and III markets that are looking to explore options that promise them stable and long-term returns,” Kushagr Ansal, director, Ansal Housing says.
“NRI Investment in sight”
There is now no doubt that reverse migration from the metros will disrupt the population scale of tier-II and III towns. This will spur demand for A-grade residential, office, retail, entertainment and mixed-use asset classes in these cities. Uddhav Poddar, MD, Bhumika Group: “Such A-grade projects would also attract NRI investment into these cities catering to the NRIs who have returned to their homes due to the uncertain global market conditions. The tier-II towns in states of UP, Rajasthan, Bihar, Jharkhand, and Odisha would be some of the main beneficiaries of the pattern.”