Rise of Satellite Cities: Reshaping India's Commercial Realty Landscape
India's satellite cities are witnessing a significant transformation in their commercial real estate landscape
Commercial Real EstateSatellite CitiesInfrastructure DevelopmentTalent AvailabilityCost Of LivingIndiaReal Estate PuneMay 29, 2024
The availability of a skilled talent pool at a relatively lower cost compared to major metropolitan areas is one of the most crucial factors driving the growth of commercial real estate in satellite cities. Infrastructure development, proximity to major cities, competitive rental rates, and access to quality talent are attracting large corporations to set up offices in these cities.
Navi Mumbai, for instance, is expected to see robust growth potential as a top choice for IT, banking, financial services, and insurance (BFSI), and global capability centers (GCCs), along with an emerging hub for data centers in India. The city offers a lower cost of living, hosts significant tech firms and GCCs, and provides a healthy work-life balance.
Pune, as an educational hub, supplies a vast talent pool for tech, BFSI, and manufacturing GCCs, combining lower living costs with strong infrastructure. Similar demand from IT/ITeS companies has been seen in cities such as Jaipur, Indore, Ahmedabad, Vizag, Lucknow, Bhubaneswar, Cochin, and Coimbatore, with exponential growth in the past 24 months.
The lower cost of living in satellite cities translates to lower operational costs for businesses, allowing them to offer competitive salaries while maintaining profitability. The enhanced quality of life, with less congestion and pollution, coupled with modern amenities, is attracting both employers and employees to relocate from overcrowded urban centers.
This migration is creating a vibrant commercial real estate market, characterized by increased demand for office spaces, retail outlets, and co-working environments, further solidifying the role of satellite cities in India's economic growth trajectory.
The Indian commercial real estate market has seen significant growth in recent years, driven by factors such as infrastructure development, urbanization, and government initiatives. As the market continues to evolve, satellite cities are increasingly playing a crucial role in reshaping the commercial real estate landscape.
KPMG India is a leading professional services firm that provides audit, tax, and advisory services to a wide range of clients. Mindspace REIT is a leading real estate investment trust that focuses on providing high-quality office spaces to businesses. JLL is a leading global real estate services firm that provides a range of services, including property management, leasing, and capital markets.
Frequently Asked Questions
What is driving the growth of commercial real estate in satellite cities?
The availability of a skilled talent pool at a relatively lower cost compared to major metropolitan areas infrastructure development and lower cost of living
Which cities are emerging as dynamic talent hubs?
Cities like Navi Mumbai Pune Gurugram Noida and Hyderabad are emerging as dynamic talent hubs
What is the expected growth potential for Navi Mumbai?
Navi Mumbai is expected to see robust growth potential as a top choice for IT banking financial services and insurance (BFSI) and global capability centers (GCCs) along with an emerging hub for data centers in India
What is the benefit of relocating to satellite cities for businesses?
The lower cost of living in satellite cities translates to lower operational costs for businesses allowing them to offer competitive salaries while maintaining profitability
What is the impact of satellite cities on India's economic growth trajectory?
The growth of satellite cities is solidifying their role in India's economic growth trajectory creating a vibrant commercial real estate market characterized by increased demand for office spaces retail outlets and co-working environments
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