Reverse migration may raise housing demand in tier-II, III cities

The reverse migration happening across the country from the metro cities is likely to increase housing demand in tier-II and tier-III cities, initially in the rental housing segment, according to an Anarock report.

Currently, the top seven cities account for almost 70 percent of India’s residential market, with the remaining 30 percent accounted for in tier-II and III cities. This ratio may well change in times to come, it said.

“Indian real estate is bracing itself for a very new post COVID-19 world. One significant trend may be reverse migration spurring housing demand in tier-II and III cities,” said the report titled ‘India Real Estate: A Different World Post COVID-19’.

Anuj Puri, Chairman of Anarock Property Consultants said, ” Reverse migration is already very visible among migrant laborers, and this trend can further percolate to skilled professionals who have been or may be off rostered. Smaller towns and cities would consequently see a spurt in housing demand.”

He said that primary demand may be towards rental housing and purchase demand would initially come from local investors keen to meet the rental demand.