Job opportunity is key factor for the improvement of property demand in any particular area or city. Cities with good number of industries / businesses that can provide career openings and improvements to individuals definitely influence the demand of homes in the area. Home buyers flock such areas to invest in properties for their self use and appreciation.
Staffs belonging to particular firm normally look for homes that are very close to their work, as this will save their travelling time and money. Prices of residences that have offices in surrounding areas, location is still developing promises attractive returns to the home buyers. Investors who are looking for good rental income also would like to have their property portfolio rich by purchasing apartments or plots in upcoming areas and by renting the same for some handsome returns. The builders who have sensed the growth of different areas, plans in advance and pick land parcel in areas that have job demand to construct their new residential and commercial properties.
Property developers go through multiple checks and research before deciding to come up with a project in new areas. The prime factor they consider is the demand in particular area. Case wise if they study, budget homes will be most sought in the area where there is more number of industries or BPO and semi luxury homes shall be required for area that has software companies around.
The locations that have highly paid employees will be suitable for developers to come up with luxury home projects. Sometimes it happens that the builder take a particular area for granted to develop their luxury segment and this might miss fire on them. In general job market of it companies are more indecisive when compared to the manufacturing industries. Also job demand from industries is driven by the type of good supplied. So it is better to think about coming up with residential projects where there are more manufacturing companies. Here the salary may not be great but will be steady and growing.
People who have info tech jobs especially from us based companies where there is a lot of outsourcing is going on are having unpredictable time ahead. The current un-certainty in us visa rules is having effect on the individual jobs of software companies in India.
It should be noted that because of above factor not all IT/ITES jobs are getting affected equally, but the builders and developers ought to understand which level of housing demand is sustainable and the changes the location might witness in long run. Not only must the developers, investors also measure the market that is getting driven by info-tech companies. Earlier India's it centric city Bangalore saw a impeccable growth, now the it companies are considering moving their work forces to cost effective places like Pune.