Chennai: Housing demand, which hitherto has remained dominant in the top eight cities of India, is gaining momentum in Tier II and Tier III or ‘shadow cities’ with the trend becoming more prominent post the nationwide lockdown, according to a latest study.
As per “Time for Internal Globalisation – Small Cities Setting the Tone for Revival” by Housing.com, there is a surge in virtual residential demand from ‘shadow cities’.
The recently launched Virtual Residential Demand Index states that the demand from small cities had been increasing steadily but saw a significant spike in August 2020.
Overshadowing the metros, the index jumped to 210 points for these places, compared to 150 for the metros post the nation entering into Unlock Phase 4.0.
Reverse migration of the corporate workforce and increased flexibility due to remote working is one of the key drivers cited for this surge in virtual residential demand.
The report noted that, though development in ‘shadow cities’ has moved at a snail’s pace, the current pandemic driven crisis, has brought structural changes, which has notably accelerated the process of deeper market penetration in tier two and three cities across sectors.
Driven by the thrust of increasing digitisation, and an aspirational consumer cohort in these cities now are exhibiting a readiness for big brands across the categories of fashion, luxury cars, jewellery and real estate among many others.
The disruption in the economy and job uncertainty caused by the coronavirus pandemic led to a significant ‘reverse migration’ of the population — both informal migrant population and employees in the formal service sector who have either lost their jobs or are working remotely.