As a general trend, employment opportunities in an area have a significant impact on property demand – higher the job opportunities available in an area, greater is the demand for properties in its vicinity. For example, the development of IT and ITeS parks in an area, boosts the demand for properties. Moreover, the demand for homes in such cases, is based on actual needs. Consequently, the realty market’s growth in such areas, is very stable.
Buying a home in an area with growing employment opportunities, has several benefits, explains Manju Yagnik, vice-chairperson of the Nahar Group. Besides the advantage of job prospects in its vicinity, the house can provide significant rental returns and appreciation in its value in future, she points out. “This is because the area will definitely develop across segments – be it commercial, residential, retail or hospitality. Hence, it will attract people in search of employment from across the country, who wish to find their home close to their work place,” says Yagnik.
Cities that have developed due to better employment opportunities
Experts assert that Pune is a prime example of a city that has developed, owing to its IT/ITeS and manufacturing sectors.
Upcoming areas include the Hinjewadi IT Park and the industrial belts of Chakan and Talegaon. Areas like Wakad, Tathavade and Balewadi, have also witnessed good growth.
Gurgaon has developed into a residential hub, due to its manufacturing and service industries. In all these regions, the IT/ITeS, engineering and manufacturing or banking sectors, have attracted job seekers and hence, home seekers, to these areas.
Similarly, Bengaluru has also grown on the back of its IT/ITeS sector, with Whitefield, ORR IT corridor and Electronic City, benefitting the most.
For example, the Hennur and Thanisandra micro-markets in Bengaluru witnessed growth, primarily because of the development of the Manyata Tech Park on the Outer Ring Road near Hebbal, points out AS Sivaramakrishnan, head – residential services, CBRE South Asia Pvt Ltd. “The demand, supply and prices of real estate property in the area, have risen steadily. Similarly, the residential micro-market of OMR, Chennai, has also been directly impacted by healthy employment opportunities. From a region with hardly any real estate development in the early 1990s, the locality now has the maximum demand, supply as well as price rise in its property market,” elaborates Sivaramakrishnan.
Other factors to consider
Nevertheless, experts highlight that the proximity to one’s workplace should not be the sole criterion for buying a home. Good physical and social infrastructure in the vicinity – like schools, colleges, hospitals, malls, supermarkets, restaurants, etc., are also important while buying a home in an emerging destination. Many home buyers also prefer to check for facilities within the residential complex, such as clubhouse, swimming pool, gym, children’s play area and greenery around the project. Buyers must evaluate all these aspects, before buying their home, they conclude.