Monday, July 15, 2024

Goa, Kochi, Lucknow, Chandigarh Tricity: New Hotspots in Real Estate

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New Hotspots in Real Estate are emerging in Goa, Kochi, Lucknow, and Chandigarh Tricity, with capital values now approaching those in Delhi-NCR and Mumbai. Goa particularly stands out with higher rental yields than top metro cities, driven by investments from high-net-worth individuals and professionals in tech and business.

Real estate markets in Tier 2 cities are rapidly closing the gap with those in Tier 1 locations when it comes to growth, according to a study by Housing.com. These cities are becoming new hotspots in real estate, attracting interest for amenity-rich premium homes priced above ₹2 crore.

Ankita Sood, Head of Research at Housing.com, says that more people are looking for amenity-rich premium homes priced above ₹2 crore in Tier 2 cities, which are emerging as new hotspots in real estate. She adds that property prices in key micro markets in these cities have surged by 10-15% in the last few years.

Goa real estate growth
Goa real estate growth.

Apart from the residential market, the retail and warehousing segments are also seeing heightened growth, the report says. Demand from national and international brands is fuelling the development of luxury retail spaces and high-street areas in these cities. For instance, India’s largest mall is at Kochi.

Reason for Growth

Rising consumer demand, growing economic potential of these cities, and reverse migration patterns, the report adds. Dhruv Agarwala, Group CEO of Housing.com, says that Tier 2 cities are emerging as growth powerhouses for the real estate sector across India.

What is real estate?

Real estate refers to property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water. It also includes residential, commercial, industrial, and land properties. Real estate is a key part of the economy, contributing to development and investment opportunities.

Chandigarh railway station for Real Estate Growth Story.
Chandigarh railway station.

What is real estate business?

Real estate business involves the buying, selling, or renting of land, buildings, or housing. This business can include real estate agents and brokers, property management, real estate development, and real estate investment. The business aims to facilitate transactions and investments in properties.

How to invest in real estate?

Investing in real estate can be done through direct property purchase, real estate investment trusts (REITs), or real estate crowdfunding platforms. Key considerations include market research, property location, financing options, and potential return on investment. Diversifying investments and consulting with experts can mitigate risks.

How to start a real estate business?

To start a real estate business, you need to obtain the necessary licenses, create a business plan, secure financing, and build a network of clients and contacts. Essential steps include choosing a niche, developing a marketing strategy, and understanding the local real estate market. Continuous learning and adapting to market changes are crucial.

Kochi real estate growth
Real Estate growth in Kochi.

How to become a real estate agent?

To become a real estate agent, you must complete the required pre-licensing education, pass the state licensing exam, and find a broker to work with. Additional skills such as negotiation, market knowledge, and customer service are essential. Continuing education and networking can help advance your career in real estate.

How to invest in real estate in India?

Investing in real estate in India involves researching the market, selecting a property, securing financing, and completing the legal formalities. Key factors to consider include location, property type, and market trends. Understanding regulations like RERA and consulting with real estate professionals can enhance investment success.

What are the 4 types of real estate?

The four types of real estate are residential, commercial, industrial, and land. Residential includes homes and apartments, commercial covers businesses and offices, industrial involves factories and warehouses, and land refers to undeveloped property. Each type offers different investment opportunities and risks.

Lucknow is rapidly catching up with Delhi and Mumbai.

What is RERA in real estate?

RERA stands for Real Estate (Regulation and Development) Act, 2016, which aims to protect home buyers and boost investments in the real estate sector by establishing a regulatory authority. It ensures transparency, reduces delays, and holds developers accountable. RERA compliance is mandatory for all residential and commercial real estate projects.

The rapid growth of real estate in Tier 2 cities like Goa, Kochi, Lucknow, and Chandigarh Tricity highlights the evolving dynamics of the Indian real estate market. These cities are becoming attractive investment destinations due to rising demand from high-net-worth individuals, tech professionals, and business investors.

As premium localities in these cities witness significant appreciation in property values and rental yields, they are closing the gap with Tier 1 cities like Delhi and Mumbai. The trend indicates a promising future for real estate development and investment in India’s smaller cities, driven by economic potential and consumer demand.

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