Over the years, the real estate sector has seen a boost not only in terms of increase in construction but the rate of occupancy as well. With increasing diffusion of the population to metro cities, like Nagpur, Pune, Indore etc., demand for residential projects as well as corporate towers have increased. According to an article by Indian Brand Equity Foundation, in India, the real estate sector is the second largest source of employment generation, after agriculture and its growth affects the growth of the country as well.
One of the major reasons for the diffusion of the population is the rapid growth of the IT sector, and the tremendous increase we can witness in the requirement of IT professionals. IT hubs of the country are focused on a few upcoming cities of India. For instance, Nagpur is a tier 2 city which has seen a massive expansion of the IT industry, which has led to accelerated urbanization in recent times. The rapid urbanisation has further propagated to increase in various residential projects in Nagpur.
Players like Tata-Capitol Heights are investing heavily in the development of various residential and commercial projects to meet the current growth rate of the real estate industry in Nagpur. One of the recent projects by Tata-Capitol is ‘Capitol Heights’, which is simply defined as the place where luxury nestles. It houses all the major amenities in the campus itself and has hospitals, schools etc., in the very close vicinity.
Another driver that may play an important role in the growth of real estate sector is the demographics of a country. The data collected under demographics describes the composition of a population such as race, gender, income, and population growth. There are numerous ways in which these demographics affect the real estate market for both investors and buyers. Demographics of a place directly affect the interest rates which in turn helps buyers in buying a home with a mortgage. These statistics play an integral part in affecting the real estate sector and help in formulating a strategy for double income buyers, or buyers looking to buy a second home or a vacation home.
According to research, in India, the urbanization growth rate has assumed a pace of 2.07%, which has, lead to 34% of Indian population now living in Urban India (Source: Wikipedia). At such a rate, the real estate sector is expected to see immense growth in the next two decades as more and more tier 1 and tier 2 cities are moving towards urbanization, which has opened the floodgates for urbanization in tier 3 cities as well. Nagpur being a tier-2 city is expected to see tremendous changes in the coming decade due to more opportunities coming up in the region. The rise of IT and other industries in the region will benefit the residential projects in Nagpur immensely.
The real estate in India is expected to reach a market size of US$ 1 trillion by 2030, and the growth graph in the real estate sector today is somewhat similar to the scenario of two decades back when the real estate had benefited hugely due to the changes in the country and acceptance of globalisation. So, this would be the perfect time for the buyers to invest in the luxurious property that they’ve always wanted. The tier 2 cities like Nagpur, Amravati, or Pune are the best possible cities to make an investment or plan your future house.