Residential and Rental Demand in Tier-2 Cities is on an Upswing

Riding high on the government’s reformative policies boosting real estate and infrastructure, many domestic and global companies are expanding their operations into Tier 2 cities. This together with the rising economy and aspirational lifestyle of people, particularly youth, is fuelling the growth of residential and commercial real estate in these thriving smaller urban centers.

Capitalizing on this opportunity, many real estate companies in Tier 2 Cities like Tricity (Chandigarh-Mohali-Panchkula) are in high growth mode. Here in this exclusive interview with Torbit Realty, LC Mittal, Director, Tri-city-based Motia Group talks about new trends of luxury housing, mixed-use developments, sustainability  and technology adoption, spurring realty growth. Excerpts

 Vinod Behl

 How do you describe the Tri-city real estate scenario with respect to demand and pricing and what are the driving factors?

Residential and rental demand in Tier-2 cities, such as Tri-city, has witnessed a substantial upswing in recent years. This surge in growth can be primarily attributed to the presence of both Indian and global multinational corporations (MNCs) that have expanded their operations into these Tier-2 cities. The proliferation of flexible work models has further fuelled this trend, with many companies opting to establish a strong presence in smaller urban centers. Additionally, government initiatives like AMRUT and the Smart Cities Mission have played a pivotal role in making Tier-2 cities economically more viable. These developments, coupled with the allure of a peaceful lifestyle and the availability of premium living spaces, have spurred the proliferation of residential and commercial establishments in these cities.

What new trends do you see in the Tri-city property market?

Several new trends have been emerging in many real estate markets including a focus on mixed-use developments that combine residential, commercial, and recreational spaces to enhance convenience, the increasing use of digital tools for virtual property tours and transactions, and a growing interest in sustainability and energy-efficient features in properties.

How’s affordable housing performing vis-a-vis luxury housing?

The performance of both affordable and luxury housing is influenced by local economic factors, demographics, and market dynamics, making it essential to analyze each market individualy. In some regions, affordable housing tends to have more consistent demand, as it caters to a broader segment of the population. Luxury housing, on the other hand, may be more susceptible to economic fluctuations and may see more significant price swings. Demand for luxury housing can soften during economic downturns, while affordable housing remains relatively stable. However, during economic upswings, luxury housing may outperform due to increased demand from high-net-worth individuals.

Today mixed use developments are gaining momentum. What’s the scenario in Tri-city ?

Mixed-use complexes are gaining popularity as individuals seek ease and versatility in their places of residence and employment. This tendency is substantially in step with the rising need for integrated projects in the Tri-Cities. The tri-city area, notably near the airport and the PR7 Airport Road, has seen an increase in mixed-use developments.

This increase is being driven by people’s desire to live in the neighborhood of their place of employment or business. Developers throughout the Tri-City area have responded quickly to such demands by offering a mix of commercial and residential structures.

Motia Group continues to embrace this shift by offering a varied choice of alternatives inside its residential plotting developments, featuring commercial lots and built-up stores. This proactive strategy coincides with the changing tastes of people  and demonstrates our dedication to provide integrated housing and employment options that meet our clients’ modern lifestyle demands.

How has been the post-covid journey of your group and what makes you stand apart as a brand? 

Due to the uncertainties and delays in development during the pandemic, we noticed that individuals now choose ready-to-move houses. To meet this demand, Motia Group has strategically concentrated on supplying ready-to-move commercial real estate, possession-ready residential lots as well as residential apartments. Post-Covid, we completed 3-4 projects, meeting our commitment for quality and timely completion projects, demonstrating our dedication to prompt completion and quality. We’re able to recognise and adapt to our clients’ changing requirements. As such, we have not only survived but also grew, by matching our products with current trends in the market, guaranteeing that our clients  effortlessly get ready to move -in residences. This customer-centric approach, along with our track record of keeping  our commitments, distinguishes us in the real estate sector.

Both buyers and occupiers are today increasingly aware about the need for sustainable and energy-efficient projects. How are you adopting environmentally friendly practices in your projects?

We are increasingly adopting environmental-friendly practices in our projects to meet the growing demand for sustainable and energy-efficient properties. We are also incorporating green building standards such as LEED certification, which promotes energy efficiency, water conservation, and reduced environmental impact. Additionally, renewable energy sources like solar panels, energy-efficient appliances, and eco-friendly construction materials are becoming common features in new developments. These practices not only align with environmental goals but also attract eco-conscious buyers and occupiers, demonstrating a commitment to sustainable living and responsible development in the real estate industry.

How do you see the prospects of real estate in Tier 2 and Tier 3 cities?

The prospects of real estate in Tier 2 and Tier 3 cities in many emerging economies remain promising. These cities are often experiencing rapid urbanization, population growth, and increased economic activity. As infrastructure and connectivity improve, there’s a rising demand for residential, commercial, and industrial properties. Investors and developers are showing increased interest due to the potential for lower land costs compared to Tier 1 cities and the opportunity for higher returns as these cities continue to develop and attract businesses and residents.

Today when innovative technologies play an important role in speeding up project completions besides improving the overall quality, how are you making use of new technologies and building materials to stay in competition?

To stay ahead in the game, we are leveraging innovative technologies and advanced building materials to gain a competitive edge. These include Building Information Modeling (BIM) for precise project planning, drones for efficient site monitoring, and augmented reality (AR) and virtual reality (VR) for design visualization and training. Additionally, off-site prefabrication and modular construction reduce construction timelines and improve quality, while sustainable and eco-friendly building materials not only meet environmental standards but also appeal to eco-conscious clients. Embracing these technologies and materials enhances efficiency, reduces costs, and ultimately allows construction companies to deliver projects faster and with higher quality, helping them remain competitive in a rapidly evolving industry.

What are your growth/expansion plans?

Motia Group is currently working on various ongoing projects. These include  Motia Estate, a residential plotting township, adjacent to Aerocity I-Block, Zirakpur, Motia Aerogreens I & II, a residential plotting adjacent to the Aerocity I-Block and Zirakpur Motia Harmony City, a residential plotting, Sector 126, Kharar, Mohali.

Motia Group has aggressive development and growth goals for the future. We have business plans to launch more projects in both Punjab and Haryana over the next six to eight months. These projects will include industrial plots as well as residential townships. The industrial plots will aid the local economy by encouraging industrial expansion, whereas the residential townships will meet the housing demands of the region’s rising population. This strategic expansion demonstrates Motia Group’s dedication to quality as well as its contribution in transforming the real estate industry.