Article from The Hindu
People who are employed in these companies naturally look for homes closer to their work place. If the area has just emerged as a workplace, property rates will be lower. This means that a significant number will choose to buy their homes here, and those who do not will still be looking for properties to rent. Real estate investors depend on rental demand, and tend to snap up a lot of new inventory in order to cater to it. Developers do a lot of research prior to launching residential project in areas which are seeing growth in employment opportunities. The number of jobs, nature of jobs and salary range is researched, before the developers decide if they should launch budget, mid-range or high-end projects.
A case in point is the real estate development in Pune’s Nagar Road. Viman Nagar, the first area to come into prominence on Nagar Road, is is today known as a high-end housing location, even though it initially catered only to BPO employees. Later, when the IT sector took off, software companies began spawning high-salaried jobs along Nagar Road, which led to the emergence of Kalyani Nagar. This led to considerable demand for luxury homes. Today, Viman Nagar and Kalyani Nagar have almost exhausted their potential to host new projects, and developers in Pune have focussed on adjoining growth corridors. In a growing country like India, the phenomenon of employment driving real estate will remain a constant for several decades to come.