New Delhi: When the slowdown is affecting the real estate market in major cities like Delhi and Mumbai, the small tier-II and tier-III cities are citing enmorous growth in the residential transations. The picture in these cities show a different real estate market.
Earnings of India’s mortage lender, HDFC Bank and Asian Paints for the second quater shows the trend. The HDFC bank seen a rose of 29 pc in the personal loan section compared to last year, espically due to the demand in the small towns. Asian Paints also saw 37 pc jump in its net profit,due to the growth in tier-II and tier-III cities. The banks lending is more to the middle-income people, more in outskrits of big cities.
The decorative paints business in India cropped up very well and the compaines registered double-digit volume growth.
According to a survey at 9,823 units Greater Noida saw a 2.3 times jump in absorption in second quarter, compared with 4,136 units in the same period last year. But during the same period launches of new project were double compared to this year.
Absorption in major cities like Mumbai fell 33 pc in teh first half, whereas Bangaloer saw a rise of 23 pc with a record number of launches.
The entire Delhi-NCR region is showing plunging trend in supply, while demand is moving up.
The developers fell metros are seeing less traction due to high prices in the market. Houses in tier-II and tier-III are very much affordable with large number of facilities. The tier-II and tier-III cities are totally dependent on agri products and industry. The economic slowdown hasn’t affected much to these smaller cities.