Real estate flourishes only in cities which generate higher numbers of job opportunities. In these areas real estate price trends remain more dynamic. Other factors remain unable to bring any favor to the real estate price trends.
Real estate price trends change according to the construction costs and inflation. However the dramatic shifts of prices is more visible in cities which produce higher number of job opportunities.
South Indian cities like Bangalore and Chennai, other cities like Hyderabad and Pune appear to be ahead of other bigger cities in creating job opportunities. With this improved and leading position in creating job opportunities, these cities witness better real estate growth in comparison to Delhi and Mumbai.
Jones Lang LaSalle India’s CEO Om Ahuja reported that if the situation goes on like this these cities will overtake Mumbai and Delhi. He also pointed to the growth of Gurgaon as well.
Previously Mumbai and Delhi had a higher flow of population from the rural areas. But now the situation got changed. People from rural areas now flow to the above stated cities including Gurgaon.
Bangalore, Chennai, Hyderabad and Pune are noted for IT development. These cities will benefit out of the expansion plans of IT companies. Wipro has recently announced the soon launch of their new facility and headquarters in Bangalore. The new launch is expected to be of approximately 2.5 million sq. ft. The new launch will enlarge the existing Wipro campus where presently 31,000 people are employed.
The available sources reveal that the real estate growth in these cities will be different. These cities will have dynamic growth. There is also a paradigm shift in the price trends as well.
JLL India’s Om Ahuja opined that by the end of 2013 the supply of properties below Rs.3000 / sq. ft. will be down to 8%. The supply rate in the end of 2009 was 43% for the same. On the other hand the supply of properties with the price range of Rs.5,000 to10,000 per sq. ft. show signs of an upward move. The trend is driven by affordability. Yet it is to be noted that real estate investors still opt for properties worth Rs.4000 per sq. ft. in fast growing cities as the best options.