Tier-II cities in india has lot of potential for investment

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Getting over the big cities for investors in real estate players is not easy but if a recent report released by CRISIL research, country’s largest independent rating agency, is to be believed, the sheer size of realty market of these ten tier-2 cities, Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow, Nagpur, Surat, Vadodara and Visakhapatnam is at whopping Rs 18,000 crore.

The real estate sector and financial institutions alike are now eyeing tier-2 cities for diversification since these offer huge growth potential and robust economic growth. Biggies like DLF, Unitech, Indiabulls Real Estate (IBREL), Parsvnath, Puravankara, Tata Realty, Reliance Urban Infra, Emaar MGF, Sobha Developers to name a few who are flocking these cities and launching projects with an average price band of Rs 2000-2700 per sft.

In contrast, these tier-2 cities are less susceptible to market shocks and interest rate hikes as only 30% population in these smaller cities are availing loans to buy real estate vis-à-vis almost 70% in tier-1 cities.

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