Realty firms in small cities may be sidelined as top listed companies plan major foray
New Delhi: The big guns in real estate have now trained their eyes of smaller cities. The large and listed players plan to enter tier 2 and 3 cities with plans to launch as much as 92 million square feet of housing projects in the coming 1-2 years on the back of work-from-home regime, attractive real estate prices and infrastructural development.
According to an ANAROCK study, Bengaluru-based Sobha Ltd and Puravankara Ltd will expand in a major way into Hosur, Kochi, Coimbatore, Thrissur, GIFT City and Thiruvananthapuram.
The listed developers that have been considered for this study are Kolte Patil, Brigade Enterprises, Mahindra Lifespace, Godrej Properties, Sobha Ltd, Prestige Estates, Puravankara Ltd and Sobha Ltd.
Data has been sourced from the presentations of the top listed realty firms and it suggests that 70-75 percent of the 92 million square feet space may be launched in the current fiscal itself.
The launch plans of 92 million squat feet suggest that listed realty firms will dominate the new housing supply.
“COVID-19 has driven a lot of latent demand into tier 2 and 3 cities. This demand is driven by the improved economic growth, infrastructural developments, lower cost of living and more attractive real estate prices in these cities. However, it is the new work from home dynamic which has worked most strongly in their favour as they continue to attract migrant professionals riding on the WFH option,” said Anuj Puri, Chairman, ANAROCK Property Consultants.
About 70-75 percent of the new supply expected in this fiscal will mean the top listed players will double their footprint as compared to the last financial year when these companies launched about 31.4 million square feet housing space.