One visit to any of the tier II and III towns and the first thing that will catch your attention is the amount of real estate construction happening. A number of these, once upon a time smaller cities are now bustling with activity on all fronts. With increasing investments from companies, particularly from the manufacturing and IT/ITeS sector, the gap between metros and tier II cities has been gradually shrinking. Improved infrastructure, lower cost of living and growing focus of the government has been a key driver towards their growth. Increasing job opportunities and growth potential in cities like Pune, Ahmedabad, Jaipur, Chandigarh, Nashik, Coimbatore, just to name a few, has translated into growing income levels and increasing demand for real estate.
This growing demand for real estate has been well channeled and tapped by developers owing to affordability and availability of land. New concepts and themes have mushroomed, offering buyers a host of innovative options to choose from.
Senior living – the new buzz word!
While the concept of senior living is quite popular in a number of countries, India has recently seen this concept slowly picking up pace. Projects dedicated to senior living are priced a bit higher than the average market rate. These homes offer special amenities such as safety and security, assisted living possibilities, health facilities close-by, community kitchens and a number of amenities within the project itself. Smaller cities or outskirts of major cities can offer low density living instead of vertically growing structures and thus these projects have found prominence here. Some cities, especially those down South, have the added advantage of a temperate climate and have seen a growth in senior living housing compared to North India which has harsh temperatures. These projects are marketed on different models (broadly – outright purchase, pure rent and upfront deposit with periodic rent) based on the regional demand, project viability and sale plans.
The concept is considerably new in India and still at a nascent stage. It will see the entry of new players and will go through a series of changes before it matures as a product category. However, till then, these projects which are generally targeted towards the financially well-off, will provide an attractive option to the upwardly mobile Indian for their elders, thus aiding in increasing the popularity of tier II and III cities.
About the author
Divya Seth Maggu, Associate Director, Valuations & Advisory Serviceshas expertise in real estate valuation and advisory across asset classes. She specialises in best-use studies, feasibility studies, location advisory, property consolidation, financial modeling & market surveys. She has led and participated in a variety of real estate assignments across West, Central & South India. She is a Chartered Alternative Investment Analyst (CAIA, USA) as well as a Registered Valuer (RICS, UK).