The upcoming tier-II cities across the country would still remain the best bet for real estate investors, according to Jones Lang LaSalle Meghraj. The real estate consulting company that recently announced an investment of more than $1 billion in the Indian property market says cities such as Chandigarh, Guwahati, Nashik, Indore, Dehradun, Vadodara and Vizag would be the hottest real estate destinations for 2008.
US-based Jones Lang LaSalle, the world’s leading integrated global real estate services and money management firm, recently merged with Mumbai-based property consultant Trammel Crow Meghraj. The saturation of metros and other tier-II cities is one of the factors for the drift. However, in addition to this, the proliferation of IT companies despite the poor performance of IT stocks in the latter half of 2007 would be the other impacting factor.
According to Jones Lang Lasalle Meghraj chairman and country head Anuj Puri, IT companies — the primary drivers in Indian real estate market, are not dependent on central business locations. Since it makes more sense for foreign-based companies to offload back-office functions and even serious research processes to
Therefore, MNCs would want to benefit from cheaper real estate prices and set up shops in tier-II and III towns, driving up the retail, residential and infrastructure sectors wherever they go.
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