The cities which generate higher number of jobs are always sought after hotly. Such areas normally have higher prices and this proves that property prices are determined by the job-generation capacity of the city.
Property price of a city is highly influenced by the city’s job-generation capacity. The city which offers higher number of jobs is hotter and property prices are higher in such cities. However the other factors seem weaker in influencing the property prices of the area.
Property prices change according to the changing trends in construction costs and inflation. Yet there is no drastic change in prices as long as the property is located in a highly job-generating area.
Real estate sector grows where there are better job opportunities. With better and higher job opportunities cities like Bangalore and Chennai, both are South Indian IT hubs, other cities such as Pune and Hyderabad achieves greater pace of development.
Om Ahuja, CEO Jones Lang LaSalle India, reported that if the current situation of these cities shows that they will overtake other bigger cities like goes on like Mumbai and Delhi. The growth of Gurgaon was appraised by him.
Earlier Mumbai and Delhi attracted majority of the rural population with better job opportunities. At present the rural population is attracted to the smaller cities like Pune and Hyderabad where they are able to find sufficient number of jobs.
The cities like Bangalore, Hyderabad, Chennai and Pune are turning as IT hubs. These cities will grow along the IT sector. It means that when IT develops the city too develops. For example the development of Bangalore which took place along the IT development. Giving more chance to develop Wipro has recently announced its new expansion plan in Bangalore.
Wipro will expand its Bangalore Headquarters. At present 31,000 people find employment here in the Wipro Campus and with the expansion more number of people will be able to find employment. Mr. Ahuja said that property prices are also will be determined by this employment generation.
