Monday, September 25, 2006

Chandigarh-not just a small town anymore

The Economic Times writes about smaller towns fueling the real estate growth in India. Like so many other fields, smaller cities and towns in India are catching up to the metro's and some even outpacing them. There was a time that professionals would never even consider moving to a smaller town due to lack of jobs, slow or non existant career growth, little to do in your spare time and so on. Thankfully the scenario has completely changed for some cities like Chandigarh (my home town!) and will soon be changing if plenty of others. The Chandigarh IT Park has been the catalyst that has altered the city, and what outsiders thought of it, and lead to changes in several areas.

Here's an excerpt from the article:
Several cities with population of 0.5-1m will emerge as the most promising market for residential and retail developments in the next 3-5 years, a report by global research and consultancy firm Ernst and Young said.

Pointing out that the trend has already started to some extent, the report said rising property prices in metros, dearth of skilled cost-effective manpower, comparatively high cost of living and high operational costs would drive the technologically sound companies towards Tier-II and Tier-III cities. “We expect huge investments across asset classes in most of the Tier-II and Tier-III cities over the next 2-3 years,” it said, adding that the ongoing rapid real estate development in larger cities would continue to happen.
Read the full article here.

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