MUMBAI: A multitude of factors driving the development of Tier II and Tier III cities in India is helping them attract multinationals to set up global capability centres , HDFC chairman Deepak Parekh has said, citing availability of talent and lower living costs as major factors behind the trend.
“Apart from the IT industry, Tier II and III cities are becoming attractive destinations for GCCs. India commands over 50% of the world’s market share for GCCs,” Parekh said while addressing developers at an event in Mumbai on Saturday.
A Deloitte report has revealed that over 50% of India’s employable pool in Tier II cities is employable compared to 30% in Tier I cities.
On real estate, Deepak Parekh encouraged the development of affordable housing projects at the right location and price, emphasising that while they may have lower margins, the velocity of sales and cash flows is much higher.
“Recent estimates forecast that the Indian real estate market is likely to touch $1 trillion by 2030. It still has a housing shortage estimated at over 29 million units,” he said.
He added that the withdrawal of the credit-linked subsidy scheme and concessional stamp duties in certain states, coinciding with the uncertainty on interest rates, had dampened housing demand, especially for low-income housing segments. “I also believe the definitions of economically weaker sections and low-income groups or even the loan and property amounts used to qualify for priority sector housing loans need to be periodically revised to reflect changing market realities,” said Parekh.
“Apart from the IT industry, Tier II and III cities are becoming attractive destinations for GCCs. India commands over 50% of the world’s market share for GCCs,” Parekh said while addressing developers at an event in Mumbai on Saturday.
A Deloitte report has revealed that over 50% of India’s employable pool in Tier II cities is employable compared to 30% in Tier I cities.
On real estate, Deepak Parekh encouraged the development of affordable housing projects at the right location and price, emphasising that while they may have lower margins, the velocity of sales and cash flows is much higher.
“Recent estimates forecast that the Indian real estate market is likely to touch $1 trillion by 2030. It still has a housing shortage estimated at over 29 million units,” he said.
He added that the withdrawal of the credit-linked subsidy scheme and concessional stamp duties in certain states, coinciding with the uncertainty on interest rates, had dampened housing demand, especially for low-income housing segments. “I also believe the definitions of economically weaker sections and low-income groups or even the loan and property amounts used to qualify for priority sector housing loans need to be periodically revised to reflect changing market realities,” said Parekh.
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