Recent Study Reveals Trends In City
Indore: The evolving lands capes in tier-2 cities like Indo-re are rapidly transforming into prominent academic, logistics, and industrial hubs, intensifying the demand for housing and commercial spaces. The combination of an in-flux of IT professionals and working-class individuals re-locating to the city, along with substantial infrastructure improvements and a commitment to cleanliness, catalysed a surge in residential and commercial property requirements.
A study conducted by an Indore-based proptech firm in collaboration with a global re al estate agency highlights that areas such as AB Road, Vijay Nagar, and Nipania are witnessing a dominant supply of apartments, accounting for 63 per cent of the total real estate inventory. Plots contribute 29 per cent, while row houses represent 8 per cent. The area boasts an impressive ab-sorption rate of approximately 86 per cent, indicating a thriving property market fuelled by excellent connectivity and limited availability, the
study showed. “Indore’s real estate market is thriving due to its strategic location and the facilities it offers. The city is growing across all verticals, including infrastructure, connectivity, and industrialisation, giving it an edge over other bigger ci-ties. The city has around 1,800 registered IT companies with turnovers between Rs 5-20 crore, and close to 80 per cent are on rental premises,” said Manoj Dhanotiya, Founder & CEO of MicroMitti, a proptech firm stressing the development of financially enabled products catering to the new set of buyers emerging in the city to address the affordability quotient.
“The current market dynamics indicate a competitive environment for residential properties and commercial spaces, and the demand is expected to grow further as the city continues to attract professionals seeking better living standards,” said Dhanotiya. Post-Covid, the demand for apartments and villas surged by 85 per cent, while plot-ted developments experienced price growth of around 60 per cent, the study revealed.
“This trend reflects buyers’ confidence and an increasing willingness to invest in property in Indore. The Super Corridor area, known for its significant IT/ITES developments and ongoing infrastructure enhancements, re ported a high absorption rate of over 80 per cent,” said Go-pal Goyal, an executive member and past chairman of the Confederation of Real Estate Developers Association (CRE DAI), Indore.
Another new evolving corridor with significant under construction supply is the Super Corridor due to the Metro project, the presence of IT companies like TCS & Infosys and proximity to the airport per by proression.
Developers said the infrastructure projects like the development of the 20.3 km long Economic Corridor from Indore Airport to the Pithampur Industrial Center and the Multi-Modal Logistic Hub at Pithampur are major infrastructure undertakings that further boosted sentiment among investors. The footfall on IT companies, data centres, GCCs, and global brands in the city escalated the demand for commercial spaces.
The report on the real estate market of Indore showed that the city has a total ready stock of 5.52 million square feet, comprising both office spaces and mixed-use office-retail developments. Expectations indicate that by 2028, the office stock will expand to 7.22 million square feet with a net addition of 1.7 million square feet, a clear indicator of the city’s growing appeal as a business destination.
GROWTH CATALYSTS OF INDORE
➤ Industrial centres of Pithampur, Sanwer, and Dewas serve as significant economic zones, accommodating prominent organisations in manufacturing, pharmaceuticals, healthcare, and textile sectors
> Infrastructure
expansion including the metro project, road expansions, flyovers, and air connectivity
➤ Ongoing
construction of the Indore Metro system and the planned six-lane Western Bypass
> Presence of prestigious educational institutions, including IIT and IIM.
