Tier - II & Tier - III cities in India to witness realty boom
Mumbai, September 25, 2006: Thus far, it has been the metros that have seen major growth in the realty sector with investors focusing on these cities to capitalize on the consistent spurt in property prices. This may soon extend to Tier - II and Tier - III cities if predictions in a recent report by Ernst and Young come true. The report forecasts heavy investments across asset classes in these smaller cities in the next two to three years, while the investments in metros will continue to be strong.
The report predicts that regional realty developers would continue their aggressive investments across the country, while local developers would start aggressively pursuing other locations like Ahmedabad, Pune, Nagpur, Kochi, Vizag, Jaipur etc.
International investments into the Indian realty sector is likely to lead to significant rise in the value of developed properties.
While the real estate market would continue to grow stronger, the introduction of real estate mutual funds would significantly improve transparency and liquidity in the sector according to the findings of the report.
It is also expected that many reputed corporate groups in the country would move into the realty sector soon and this may led to strategic alliances with global developers bringing in huge investments in the Indian realty sector.
By INRnews Correspondent
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