Most of the Tier II & III cities have been driven by employment generation through manufacturing or services sectors.
As it is said that India is a country under construction, Tier – II & III cities are contributing more to it. Smaller towns and cities have seen better home loan offtake, beating the share of the metro by a significant margin, said a report by JLL Research. The report has revealed that there are 45 districts representing Tier- II & III cities that have registered higher growth than the national average. While the pace of home loan growth is at 19 per cent for the rest of the nation in the last six years, the growth rate of districts which comprise the top 7 metro cities is at 12 per cent in the same duration.
“Most of these cities have been driven by employment generation through manufacturing or services sectors like ceramic tiles, diamond processing, tourism, textiles, leather industry, agro-processing, automobiles, engineering goods, etc,” Jitesh Karlekar, Director-Capital Markets Research, JLL Consultants, told Financial Express Online.
The improved connectivity, infrastructure growth, better education, and health care facilities leading to improvement in living standards have also helped the real estate developers in these cities to adopt the latest trends and provide homes at competitive rates, he added. Cheap labour and land cost have also fueled the growth of home loans in such cities.
Meanwhile, government’s policy initiatives like Smart city mission, Industrial corridors, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Metro Rail projects, Prime Minister Awas Yojana (Urban) and Make in India, have also contributed to improving the interest of homebuyers in the Tier – II & III cities. The impact of these projects is expected to be long term and will make these cities more attractive destinations for various industries as well as residential real estate, said the JLL report.