Realty eyes space in tier II cities

Grade-A real estate companies have been expanding their footprints from top-tier cities to tier II cities lately.

- Harsha Jethmalani

Factors like affordability, relatively higher growth potential in untapped regions, and improving infrastructure, is enticing realtors and homebuyers to tier II cities like Agra, Chandigarh, Goa, Jaipur and Nagpur.

This helps realtors lower the concentration risk since a large number of their offerings are still housed in tier I cities of Mumbai, Delhi-NCR, Bengaluru and Kolkata. But a gradual shift is already underway.

Godrej Properties Ltd, Prestige Estates Projects Ltd, Brigade Enterprises Ltd, Sobha Ltd and Puravankara Ltd are among developers who have exposure to tier II cities of Indore, Nagpur, Kochi, Calicut, Mangaluru and Ooty. It goes without saying that launches and pricing trends in tier I cities remain crucial drivers for listed realtors as these are considered hubs of financial and economic activities.