Mumbai, Sept 24: Several cities with population of 0.5 million to one million will emerge as the most promising market for residential and retail developments in the next three to five years, a report by global research and consultancy firm Ernst and Young said.

Pointing out that the trend has already started to some extent, the report said rising property prices in metros, dearth of relevantly skilled cost effective manpower, comparatively high cost of living, high operational costs would drive the technology sound companies towards tier-II and tier-III cities.

"We expect huge investments across asset classes in most of the tier-ii and tier-III cities over the next two to three years," it said, however, adding that the ongoing rapid real estate development in larger cities would continue to happen.

Following the trend, it said, bigger regional developers would aggressively expand and diversify their operations across the country and city-focused developers would venture out into other locations, namely Nagpur, Vizag, Chandigarh, Coimbatore, Kochi, Pune, Ahmadabad, Jaipur, Indore and Mysore.

E&Y expects several large and established business groups in India would expand exponentially over the next 2-3 years and would emerge as market leaders due to their inherent advantages, such as high brand recognition, goodwill, sound financial backing and project management experiences.
 

 

Source : The Economic Times