BackFlat prices in Visakhapatnam, Coimbatore, Surat see higher rise vs metro cities: SBI Report
Housing prices have increased significantly in smaller cities and suburbs than in major cities over the last year, said SBI Research in its Special Report on Emerging Trends in Residential Housing
PremiumThe housing prices have increased more in smaller towns and cities than in metros, according to SBI Research: Special Report on Emerging Trends in Residential Housing. It stated that many tier-2 cities including Visakhapatnam, Guwahati, Raipur, Surat, Vadodara, Jaipur, Lucknow, Dehradun and tier-3 city Coimbatore have witnessed higher growth in housing prices.
SBI Report added that increasing trend of work from home and freelance jobs led to higher demand of homes in smaller cities and towns.
What are tier 1, 2, 3 and 4 cities
-Metropolitan regions of Bangalore, Chennai, Delhi(NCR), Hyderabad, Kolkata, Mumbai, Ahmedabad, Pune are considered as tier 1.
-State capitals and evolving areas are categorized as tier 2.
-Rest of the districts are categorized as tier 3 and 4 based on their urban population. If urban population of the district is between 26-50% it is classified as tier 3 and rest as tier 4 (basically rural districts).
What has led to this shift? Is Covid-induced pandemic, the reason behind this shift?
“Covid changed our lives in many ways. One such trend that has been an outcome of the pandemic is work from home. A lmost all the companies (private and public) resorted to work from home policy during the first wave in 2019 and some are still working on the same mode, or have moved to hybrid model as a post-pandemic strategy," SBI Report said.
The increased job opportunities coupled with the lower cost of living had already led many to start shifting their bases away from over-crowded metropolitan cities. Several top-tier developers had already launched international quality lifestyle residential projects to cater to the changing demand patterns. The government’s infrastructure focused schemes like AMRUT and Smart City projects is also helping in developing world class infrastructure in these cities, the report added.
SBI Report: Housing Prices increased more in smaller cities than in metros
-Housing prices have increased significantly in smaller cities and suburbs than in major cities over the last year.
-Many tier-2 cities including Vishakhapatnam, Guwahati, Raipur, Surat, Vadodara, Jaipur, Lucknow, Dehradun and tier-3 city Coimbatore have witnessed higher growth in housing prices
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