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Tier II and Tier III cities hold enormous potential for realty sector

Jayesh Dave has emerged as one of the few developers that understand the geography of Tier II cities the best.

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The demand fundamentals of the Indian realty sector are now focused on all the cities that have sufficient economic activity, be it industrial, service sector-driven or incentive-driven schemes by the state governments. In this scenario, Tier II and Tier III cities have made their mark as potential realty hubs of the nation.

For Gujarat, which has seen considerable industrial progress, key cities of Surat and Vadodara readily flash across the mind when it comes to the realty boost the state’s Tier II and Tier III cities have been receiving.  These cities represent a great story, especially in terms of affordable housing for industrial workforces.

These are locations where the strength of regional players comes into play. There is at least one strong developer in every region. For instance, in Vadodara, Jayraj Builders is a powerful name. Led by the vision of its founder Jayesh Dave, Jayraj Builders has demonstrated that it understands the geography of Vadodara the best.

The success of Jayraj Builders in catapulting the real estate sector of Vadodara to new heights has inspired other developers from outside the region. According to the company’s founder and MD Jayesh Dave, Tier II and Tier III cities hold enormous potential with respect to realty sector.

“We (Jayraj Builders) entered the business with projects in Mumbai. However, we shifted our base to Vadodara upon realizing the development opportunities the Banyan City offered being a Tier II city. Once the fundamentals of an area’s demand are captured sufficiently and the markets are sanitised in terms of financial market stabilisation, Tier II and Tier III cities turn out to be better bets than Metros,” says Jayesh Dave.

The surge in property demand in cities other than the Metros is a trend not limited to Gujarat. Pantnagar and Rudrapur in Uttarakhand; Pune, Nashik and Nagpur in Maharashtra; Baddi in Himachal Pradesh; and Visakhapatnam, Coimbatore and Kochi in the South are some noteworthy examples of how residential and commercial developers are meeting success in creating unconventional realty hubs, thanks to proactive government policies and growing investor interest.

Developers are now positioning their projects close to industrial hubs, targeting a totally different price segment and making the most of it. In the next one or two years, these realtors are expected to have realigned their strategies sufficiently to leverage the potential of Tier II and Tier III cities.

Tags: Jayesh Dave Jayraj GroupJayraj BuildersJayraj GroupReal EstateSmart City
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