Development of tier 2 cities & its impact on property prices in metro cities
Logically if a smaller city offers most infrastructure & amenities matching the metros , then there should be a massive shift of the middle income group to these places from most metros, however the most significant reason why people migrate to metros from small towns & cities, put up with less than acceptable living conditions is the employment & business opportunities.
Assuming the tier 2 cities also start generating similar opportunities, it most definitely will take a minimum of 10+ years.
This could be amajor deterrent for a drop in property prices in metros.
The other reason why development of tier 2 cities may not impact property rates in metros, is lack of developable spaces at acceptable prices. This is the major reason for development of tier 2 cities.
Protip: it would be very sensible for the retired people to move there ,provided these cities have good healthcare, safe and secure environment for its citizens, places of worship and parks etc.
In my experience of over 40 years of estate broking , i have seen cities such as vashi , thane to name two , come up beautifully, but have their blooming into wonderful cities impacted property prices in mumbai, the answer is definitely a big no.
Take a informed and sensible decision before investing in real estate. Remember the golden rule buy a premium property, in a decent location rather than a substandard property in a undesirable location.
See you soon with a fresh topic.
