The festive season is sparking a significant surge in the Indian real estate market, particularly in tier 2 cities and holiday destinations. Homebuyers and existing property owners, enticed by the prospects of ownership and upgrades, are reshaping the market dynamics. Emerging destinations like Panchkula, Meerut, Karnal, and Panipat are becoming hotspots, experiencing a remarkable uptick in demand for residential properties.
In 2010, DLF, a major real estate developer, strategically entered Panchkula with The Valley, a luxury residential project. The company achieved substantial sales of independent floors, totaling Rs 1,150 crores in the fiscal year 2022-23. Aakash Ohri, Joint Managing Director and Chief Business Officer of DLF Ltd, notes the transformative shift in Panchkula’s real estate market. Rising property values are enticing more homebuyers and investors, fueling demand for homes in this thriving region.
Trident Hills, Panchkula, adds to the narrative with the recent launch of Windsong Residences, premium independent floors within their integrated township. The company plans to invest Rs 700 crores for the construction of 412 units, highlighting their commitment to meeting the growing demand. Parvinder Singh, Chief Executive Officer of Trident Realty, emphasizes the immense promise for Tier-2 cities. Panchkula’s strategic location, connectivity, quality of life, and economic opportunities are driving a surge in demand for independent floors, reflecting a discernible shift towards a more personalized and secure living experience.
The impact of the festive season extends beyond Panchkula, reaching Meerut, Modinagar, and other areas along the recently inaugurated priority section of the Delhi-Ghaziabad-Meerut RRTS corridor. The alignment of these areas with the corridor has spurred a rise in demand and influenced property prices. Santosh Agarwal, CFO and Executive Director of Alphacorp, notes the trend of investing in Tier II Cities like Karnal and Meerut during this festive season. These cities offer a balanced cost of living, work-life harmony, and residential buying within budget constraints, making them attractive investment destinations compared to metro cities.
The confluence of increased realty prices over the past decade and infrastructure development has inspired confidence among Indian real estate developers and state governments to focus more on cities with high potential. The sudden focus, prompted by the pandemic and the vision of central and state governments to develop smart cities, has opened up significant scope for the realty sector in Tier II Cities.
The surge in demand is not confined to residential properties alone; holiday destinations are also witnessing a notable uptick. Aditya Kushwaha, CEO & Director of Axis Ecorp, anticipates at least a 30 percent increase in sales from Axis Blues, Axis Yog Villas, and Axis Lake City Avenue in Goa compared to last year. This aligns with the pan-India trend, with residential property sales increasing by around 6%, reaching 103,000 units, as reported by Ankit Kansal, Managing Director of 360 Realtors. The festive season, coupled with increased discretionary spending, has developers offering a variety of incentives and freebies to entice customers and boost revenue.