Dainik Bhaskar Real Estate Conclave 2025: Tier 2 and 3 Cities to Lead the Next Real Estate Boom

The Dainik Bhaskar Real Estate Conclave 2025, held at the Taj Hotel in Mumbai, brought together leading experts and developers from across the country to explore the future of the real estate sector. The theme of the conclave, 'The Next Wave of Real Estate Growth', aimed to provide valuable insights and success mantras to real estate developers.

With the real estate sector contributing about 7% to India's GDP, and expected to grow to 12% by 2030, the conclave focused on the significant opportunities in tier 2 and 3 cities. These cities are poised to witness the next wave of real estate growth, driven by increased capital availability and a strong emphasis on financial discipline and transparency.

Prominent experts at the conclave included Raamdeo Agrawal, Chairman and Co-founder of Motilal Oswal Financial Services; Dhaval Ajmera, MD of Ajmera Builders; Jayesh Shah, Chairman of Naman Builders; and Girish Agrawal, Promoter Director of Dainik Bhaskar Group. These experts shared their insights on various aspects of the real estate market, providing guidance to developers on how to navigate the evolving landscape.

Raamdeo Agrawal highlighted the abundance of capital opportunities available in the market. He stated, 'There are unlimited capital opportunities available for qualified real estate developers. Capital up to ₹10,000 crore can be raised quite easily. For this, it is necessary to have a clear business plan, clean financial records, and increased capacity.' This emphasis on financial transparency and a well-defined business strategy is crucial for developers seeking to tap into these opportunities.

Jayesh Shah, Chairman of Naman Builders, stressed the importance of financial discipline. He advised developers to keep the debt-equity ratio at 1:1, which he considers the safest. 'Success comes from risk management and a strong financial foundation. To succeed in Tier 2 and Tier 3 cities, emphasis should be placed on understanding the cities and the importance of joint ventures,' he said.

Dhaval Ajmera, MD of Ajmera Builders, emphasized the significance of transparency and phased development. 'There are great development opportunities in cities like Nashik and Ahmedabad. In such a scenario, new developers should start with small efforts,' he noted. This approach helps in building a strong foundation and gaining the trust of investors and buyers.

Vipul Rungta, CEO and Managing Director of HDFC Capital, highlighted the shift in the real estate sector. 'India has now become a country with an abundance of risk capital, which directly benefits developers with strong corporate governance. Real estate is no longer a simple commodity, but a special product, and this is why financing options like real estate investment trusts, structured instruments, and public debt markets have become more relevant today,' he explained.

Utpal Seth, Trust Group, emphasized the importance of improving working methods and corporate governance. 'If the credit rating is good, interest rates will be lower, reducing the cost of the project,' he said. This can significantly enhance the profitability and sustainability of real estate projects.

Rachit Kothari of Brookfield and Shravan Sharma of Blackstone discussed the potential of commercial properties and malls under REITs. 'A commercial property of 100-200 crores or a mall with an annual rent of ₹30-50 crore can come under REITs,' they noted. This provides a new avenue for developers to raise capital and diversify their investment portfolios.

Karthi Marshan, Kotak Mahindra Bank (Executive VP- Group Marketing), highlighted the importance of branding. 'Branding is a very powerful force,' he said. Strong branding can help developers stand out in a competitive market and attract more investors and buyers.

Girish Agarwal, Promoter Director of Dainik Bhaskar Group, provided an overview of the current and future state of the real estate sector. 'The Indian real estate sector currently contributes about 7% to the country's GDP. It is expected to increase to 12% by 2030, making this sector a $1 trillion industry. According to CRISIL's analysis, the luxury and premium segments of real estate are expected to grow by 30-35% in the next three years,' he stated.

The Dainik Bhaskar Real Estate Conclave 2025 provided a platform for real estate developers to gain valuable insights and strategies to succeed in the rapidly evolving market. With a focus on financial discipline, transparency, and strategic planning, developers can capitalize on the opportunities in tier 2 and 3 cities and contribute to the growth of the real estate sector in India.