OUR STAFF REPORTER Indore Its boom time for realtors in Indore. While allotment of land to TCS on Super Corridor is expected to drive land prices up, the interest shown by six more IT companies and half- a- dozen investorsinterest in IDAs five mega projects at the recently concluded investors meet, is likely to drive the prices further up. Moreover, the growth potential and stable prices in Tier- II cities are also attracting big players.
According to a real estate report released by CRISIL recently, real estate players are making a beeline for smaller cities with an eye on future growth potential. Besides the growth, price stability is also a factor which is causing these players to move to smaller cities.
The report, titled alt145 Real( i) ty Next: Beyond Top 10 Cities of India,estimates the sales of new residential apartments around Rs 180 billion by 2012. The study details the planned supply, the expected demand and outlook for the prices in 65 sub- markets across cities such as Bhopal, Bhubaneshwar, Coimbatore, Indore, Jaipur, Lucknow, Nagpur, Surat, Vadodara and Visakhapatnam where almost 354 million square feet of supply has been planned over the next three years. The study finds that smaller cities offer better price stability and demand growth and foresees price rise in at least seven smaller cities. On the other hand, prices are likely to increase only in four out of 10 large cities i: e Ahmedabad, Bangalore, Chandigarh, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, National Capital Region of Delhi and Pune.
The study further states that the proportion of buyers taking home loans is relatively lesser in smaller cities. A gradual increase in penetration of home loans coupled with affordability and shift from independent homes to apartments could boost demand. A few large developers already have presence in Bhopal, Lucknow, Indore, Jaipur, Nagpur and Coimbatore where they are either building land bank or executing their projects.