5 reasons why Tier-2 cities are transforming into real estate hotspots
Post the Covid-19 pandemic, companies across sectors are setting up their regional or satellite offices closer to their employee base, in Tier-2 cities.
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Some popular cities include Ahmedabad, Indore, Jaipur, Kochi, Bhubaneswar, Chandigarh and Lucknow.
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1) A key factor is improved infrastructure connectivity.
2) Cheaper land costs, affordable homes and office rentals. According to industry reports, real estate rentals in Tier-2 cities are almost half the amount landlords charge in established markets.
3) Availability of skilled workforce: Post the Covid-19 pandemic, employees want to live closer to their families. Companies too are looking to optimise costs and leveraging the work-from-home and hybrid models to retain employees.
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4) A report by Cushman & Wakefield has said that rising income and consumption levels have made Tier-2 cities a magnet for retail investments with large Grade-A malls and prominent highstreets coming up.
Photo Credit: Representational photo/ Pexels
5) A Colliers report has pointed out that Ayodha, Indore, Kochi, and 13 other cities are emerging as real estate hotspots, driven by improved infrastructure, affordable housing, skilled talent and government initiatives.