The Internet has become essential in 2020 as several professional and personal activities were carried out using it. As work from home emerged as the new trend, the internet became a great medium for people to connect as many shifted back to their hometowns. Many also realized the importance of having a home for their post the outbreak of the pandemic. This has led to the spiking demand for homes in tier-II cities.
The outbreak of the Corona Virus has led to companies realizing the importance of work from home and this has led to a majority of the workforce shifting to tier-II cities. The main reason for this shift is that tier-II cities offer a lower cost of living and better work and personal life management in comparison to the tier I cities. The houses are also available at an affordable rate.
The sudden shift in demand has also made the government and builders realize the importance of developing these neglected markets. With the increasing demand for residential and commercial properties in tier-II real estate markets, a leading real estate platform revealed that landowners and homeowners have started to opt for online service to buy and sell off their properties in 2020.
This article will discuss in detail the growing demand for properties in the Tier II markets and the digitalization of the sales process in these cities post the outbreak of a pandemic.
Digitalization of the sales activities
The increasing demand for properties in the Tier II markets and the lockdown restricted physical sightseeing were some of the reasons which led to the transition of a property sale from offline to online mode. It has been recorded in a recent study that the landowners in around 500 cities and towns across India, prefer digital solutions to sell off their properties.
Still, wondering which Indian cities fall under the category of tier II realty market? Lucknow, Jaipur, Coimbatore, Vadodara, Indore, Nagpur, Bhubaneshwar, Visakhapatnam, Patna, and Bhopal are some of the markets that fall under the category of tier-II cities in India. Gomtinagar, Indiranagar, Mansarovar, Saravanampatti, Patia, Super Corridor, Manish Nagar, Vasna Bhayli Road, Madurwada, Saguna More and Hoshangabad, have been identified as the hotspots for realty investments in these tier-II cities.
Reports have also shown that the duration taken by these landowners to sell their property online varies. 57% of the sellers usually promote their property for almost 0-3 months while 27% promote for 3-6 months and about 16% of the sellers promote for more than 6 months. The main reason for the delay in closing the deal is that sellers now shortlist a minimum of six buyers before closing.
Reasons to invest and not invest in Tier-II cities
Here are some points you should know while you are taking an investment decision in tier II cities.
Decent infrastructure and connectivity
Poor international air connectivity
Less pollution in comparison to tier I cities.
Few or limited economic activity
Less traffic-related issues
Absence of Multinational Companies
affordable cost of living
Fewer job opportunities than the tier I cities.
Enhanced quality of life
Lower cost of purchasing a property
Future of realty market in Tier-II cities
The builders have realized tier II cities as a major area to develop and work on as people prefer larger homes, closeness to family, lower pollution in comparison to tier I cities, enhanced living standards, etc. Most of the tier-II cities also come with good connectivity and infrastructure. Metro stations, excellent public transport facilities, and access to basic facilities like schools, hospitals, banks, and shopping markets are some of the other factors which contribute towards the growing demand for the realty market in tier two cities in the year 2021.
As the end of the pandemic cannot be predicted, several companies around India opt to work from home until the cases subside. This has led to people choosing properties with affordable pricing ranges and this has been another factor that has fueled the demand for properties in tier-II cities.
As already stated, the Internet has been essential after the pandemic as it has been the main tool in carrying out commercial activities not just in India but all around the world. The lockdown also imposed several disadvantages on the realty market such as delay in delivering the project and restriction on physical site inspections. The builders and landowners have developed tools enabling the site inspection using online mode to curb such issues. Many also chose interest as a medium to promote their property and communicate with potential customers.
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Frequently Asked Questions on Increasing Online Property Sales in tier-ii Cities:
Some of the best site to sell property online includes Magicbricks, 99acres, Housing, India property, Makaan and Assetmonk.
Some of the ways to invest in property online are by investing in REITs, REIT ETFs and mutual funds, Real estate notes, real estate crowdfunding, etc.
Select the online platform you want to put your rental property on. Then fill up all the necessary details. You may upload pictures showing various facilities and amenities on the property. After filling up all these necessary details of your property a property review process will be initiated by the quality team of the site you choose to put your property and then your property can go live.
Some of the ideal ways to make money in real estate without buying a property include investing in Real Estate Investment Trusts (REITs), Real Estate Mutual Funds, Real Estate ETFs, Wholesaling Houses, using an Online Real Estate Investment Platform and through Real Estate Partnerships.