Jones Lang LaSalle Meghraj said that tier-II cities of India will continue to be the hot spot for real estate investors. According to Jones Lang LaSalle Meghraj, cities such as Chandigarh, Guwahati, Nashik, Indore, Dehradun, Vadodara and Vizag would be the hottest real estate destinations for 2008. The consulting major has recently declared an investment of more than $1 billion in the Indian property market.

US-based Jones Lang LaSalle, the world’s leading integrated global real estate services and money management firm, recently merged with Mumbai-based property consultant Trammel Crow Meghraj. The saturation of metros and other tier-II cities is one of the factors for the drift. However, in addition to this, the proliferation of IT companies despite the poor performance of IT stocks in the latter half of 2007 would be the other impacting factor.

The company’s chairman and country head, Anuj Puri said that the primary drivers in Indian real estate market do not rely on central business locations. Since it makes more sense for foreign-based companies to offload back-office functions and even serious research processes to India than to undertake these in situ, IT/ITeS companies can operate from anywhere in India, as long as the availability of skilled man power and necessary resources is easy.

MNC’s will definitey want to take full advantage from the cheaper real estate prices and set up shops in tier-II and III towns, pushing up the retail, residential and infrastructure sectors wherever they go.

Emerging areas offer excellent investment opportunities because of the low entry level prices as compared to the saturated markets where getting space is very difficult.

That is why places like Vizag that with cheaper lands when compared to mainstream city, Hyderabad, low cost manpower, low competition, better infrastructure coupled with high purchase power, one of the most sought after cities. The most selected areas in Vizag for residential investment are Dwarakanagar, Seethamadhara, Gajuwaka, Rushikonda, Anakapalli, Bheemili and Paarwada for commercial development and Madhurawada, Pendurthy, Parawada, Bheemunipatnam and the areas towards the Anakapalli Corridor.

Following a similar trend is Vadodara with prime residential areas in Alkapuri, Race Course Road, Old Padra Road, Jetalpur, Akota and Fatehganj. The Uttaranchal government is making a 60-acre IT Park in its capital Dehradun which is also driving the real estate markets skywards. Places like Chakrata Road, Mussoorie Bypass and Sahastradhara Road are the best locations for small to medium investors.

In Indore, low-entry costs in places like Vijay Nagar, Bypass, A B Road, Rau, Gulmohur Colony and Green Park Colony offer great investment opportunities. While Nashik with its proximity to Mumbai and connectivity makes suburbs of Anandwalli (Gangapur Road), Indiranagar, Untwadi, Aadgaon (off Mumbai-Agra Road) and along Pathardi Link Road a good catch. An upsurge in the retail market in Guwahati has made the Khanapara, Zoo-Narengi Road, Basistha and Beltola as the new residential hot spots.

Chandigarh scores very high on property market, people, physical infrastructure, social infrastructure and business environment. Coupled with rapid development on its outskirts, the city has seen very encouraging real estate and retail trends. Other than the city itself Panchkula, Mohali, Dera Bassi and Zirakpur offer interesting investment option.