With housing demand from tier-II and tier-III cities picking up, the real estate developers are gradually shifting focus to the smaller cities in North.
As per market experts, the growth story of the smaller cities is likely to continue in the coming year as well. While the realtors give credit to the upward economic swing and stability in the market for better demand in 2010, they project the sales to be better in 2011.
Ravi Saund, head business development, CHD Developers, said the improvement in real estate in tier-II cities was mainly due to increase in demand for organised realty and availability of land at affordable prices. “The resurgence in the sector can be attributed chiefly to infrastructure, which in turn, accelerated activities in residential space,” he said.
Sharing the company’s position Saund said, “We had launched a premium group housing project called Avenue 71, Gurgaon in the first quarter of FY 2010-11. We have sold around 1 million square feet of space till date. Overall sales till date for CHD City, Karnal hit 336 units; already well up on the 153 sold in the last year, with November-December numbers yet to come. We intend to launch mid-segment residential projects in Gurgaon and Noida by early 2011. Manesar and Ludhiana will be the emerging cities for 2011.”
Few developers saw the sales surge by 10-15% in 2010 and expect a stable market next year. Ashwani Prakash, executive director, Paramount group, said, “We saw our sales surging by 10-12% in this year. The cities where we will be focusing for expansion include Lucknow, Zirakpur, NCR, Agra, Chandigarh. We have new residential as well as commercial projects coming up in Noida and NCR that will catalyse an investment close to Rs 1,500 crore over the next two years.”
North seems to be the next target for various developers for new projects. Manoj Kumar, vice-president (marketing), M2K Group, said, “We are planning to expand in tier-II and tier-III cities like Lucknow, Kanpur, Jharkhand, Chandigarh, Panchkula, Ludhiana, Amritsar and Jalandhar. We are coming up with an integrated township in Daruhera over 100 acre. As per estimates, we have projects with a net worth of over Rs 2,000 crore under our purview.”