Real estate companies cash in on small city boom

Real estate companies are looking to fulfill the demand for residential and office space in tier-II and tier-III cities. Most of them have ambitious projects in this financial year.

DLF feels with economic growth faster in the smaller cities, there will be more demand there. The realty firm feels the growth in tier-II and tier-III cities is triggered by the fact that prices are comparatively quite low in these cities. Its DLF Garden City project in Indore has been a major success, with the first phase being sold. The company is planning to launch the second phase during the current financial year.

Ansal Properties also has ongoing residential projects in Jaipur, Jodhpur, Agra, Ajmer, Kundli and Panipat, among others. In this financial year, the company plans to launch a million sq ft area in a commercial project in Lucknow, which will have office buildings and a shopping mall.

Omaxe has 40 residential and integrated township projects in tier-II and tier-III cities. These projects are primarily in Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh and Punjab. In this financial year, it plans to launch a slew of projects in cities such as Allahabad, Patiala, Chandigarh, Indore, Bhiwadi and Lucknow. The company is expecting sales value of Rs 2,000-2,500 crore from these projects in this financial year.