Chennai: There has been a surge in virtual residential demand from ‘shadow cities’ (Tier II and III cities), it is said.
According to Mani Rangarajan, Group COO, Housing.com, Makaan.com and Proptiger.com, “The virtual residential demand index jumped to 210 points for ‘shadow cities’ compared to 150 for the metros post the nation entering into Unlock Phase 4.0. Post May 2020, there has been a noteworthy increase in interest levels for residential properties, especially from non-metro cities such as Amritsar, Chandigarh, Vadodara, Nagpur, Vijayawada and Coimbatore.”
Though in the past, development in these cities moved at a snail’s pace but post-Covid, changes are taking pace, leading to deeper penetration of real estate; the change owes a lot to the pent-up demand and the realisation of living a planned life.
Another factor that leads to the change in mentality is the increased digitisation which triggered the aspirational values of the buyers in these shadow cities. The populace in these cities is now ready for big brands, not only real estate but also in other segments such as fashion, luxury cars, jewellery, etc.
The scope for 2021 looks optimistic, especially in the scenario when reverse migration to shadow cities took place after the coronavirus pandemic. The migration, which was not restricted to migrant workers, is increasing the usage of the e-commerce platforms and also of the online search for residential properties that match the standards which these people were used to in Tier I cities.
Statistically, the interest of buyers in shadow cities increased to 27 per cent in H1 2020 as compared to 18 per cent in H1 2019.