Real Estate Growth in India to be Fueled by Smaller Cities

Posted on September 23, 2007

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According to the Indian Real Estate Report, 2007: Growth & New Destinations’, prepared jointly by FICCI and Ernst & Young.

The Indian real estate has been growing at over 30% per annum for the last five years. ?The order of growth is shifting the focus of investors and developers to relatively smaller cities and hence there is a likelihood of such emerging cities, leading the transformation of the Indian real estate sector?

Ernst and Young have classified Indian cities as tier I, II and III.

According to the report, besides eight metros, 11 tier II cities such as Surat, Chandigarh, Nagpur, Vadodara, Visakhapatnam Jaipur, Thiruvananthapuram, Kochi, Nashik, Indore and Ludhiana are going through rapid growth but are still in initial phase of the growth.

These tier II cities have been given a rating of B++. Delhi and Mumbai rank top two with A++ ratings, followed by Bangalore, Chennai, Hyderabad, Kolkatta (A+ rating) and Pune and Ahmedabad (A rating).