The Indian real estate market is expected to touch US$180 billion by 2020. The housing sector is expected to contribute around 11 percent to India’s total GDP by 2020. In the years FY2008-2020, the market size of this sector is expected to increase at a Compound Annual Growth Rate (CAGR) of 11.2 percent. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
The real estate market is witnessing significant growth in tier-II and tier-III cities, which is also more than that in the metro cities. One of the most sought after tier-II cities, which is likely to earn the bonus points in the real estate sector in Chandigarh.
Chandigarh is not only known as the common capital city for two major states Punjab and Haryana but also as a gateway to all of north India. Chandigarh connects Jammu and Kashmir, Punjab, Himachal Pradesh, Haryana, Uttarakhand and Delhi.
Here are the major factors, which drive the real estate business in Chandigarh:
1. Land of opportunities: Metro-cities have always attracted the small town population for being the source of job opportunities and good educational scopes since time immemorial. But now that metro cities have become overcrowded, space crunch has become a significant problem.
Thus, the focus has shifted to tier-II and tier-Iii cities like Chandigarh and others. Being the connecting center of five main states, Chandigarh is attracting a lot of population from these places in a promise to offer better job opportunities and business opportunities.
2. Evolving local population: Anuj Kejriwal, MD & CEO – ANAROCK Retail says, “Several factors are working in favor of tier II & III cities. While the metros face mounting challenges in the form of overall saturation due to lack of space, increasing rentals and escalating infrastructure woes, the smaller cities have been witnessing multiple infrastructure upgrades even as technological enhancements help create more awareness about brands, products and markets there.
In fact, the contemporary Indian shopper in tier-II&III cities is more demanding and aware and has higher disposable income than ever before. A large segment of tier-II and tier-III city customers are globe-trotters and this has necessitated a revolutionary change in the way the retail sector must adapt to tap into their demand.”
3. Co-working spaces: Since the city is growing, a lot of domestic as well as foreign brands are targeting to grow in tier-II cities like Chandigarh, and especially for being in a prime location, different offices and IT buildings are also growing.
When there are multiple brands and companies in a city, co-working spaces also grow and therefore, the demand for these co-working spaces has also seen a steep rise in Chandigarh.
Tier-II markets, rising with the budding entrepreneurial spirit and growing economies, are also giving the segment further impetus to facilitate the growth of co-working across the country, with reports suggesting that Tier-II markets are projected to grow to 8.5mn seats by 2020.
4. Franchising hubs: Since the city is developing and is one of the potential markets to grow, a lot of schools franchises, malls franchises and other franchise players are eyeing to this city to have a piece of this business pie.
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Those who want to start their own business or take up franchisees can join in the FRO 2019, happening in Chandigarh on 19-20 January, to know more about the franchise business, financial advice, and business advice from the experts. Meet the investors personally and participate to change the small world of business.
