Explaining the phenomenon, Sanjay Verma, joint MD of Cushman and Wakefield said, "All major markets - metros and Class A cities - across India are witnessing extremely high rates and a high degree of suburbanization. Following a lag in infrastructure development, currently most suburban areas are witnessing greater infusion of capital for upgrading infrastructure. Better road connectivity, public transport networks and dedicated business promotion zones are being set up by the respective state government. This has increased the attractiveness of living in such suburbs.

"Social infrastructure, in terms of schools, medical facilities, colleges, etc., is also fast catching up to cater to the now increasingly profitable suburban audiences. A similar growth trend is visible now in tier II cities like Ludhiana, Chandigarh, Jaipur, Hyderabad, Kochi, etc. Business led demand for commercial office space has fuelled demand for residential and retail properties."

All evidence points to the fact that the present growth trend will continue in 2005. "Majority of growth in these cities is driven by end user demand. It comes predominantly from the salaried class who are looking to own housing and upgrade their living standards. With time these cities are emerging as magnets of further growth and employment in their respective states. In times to come, most cities across India are expected to mirror similar capital appreciation and yield rates. Hence to that extent there will be minor corrections or spikes in each market," said Verma.

Interest rates, which had shown signs of firming up, have again started softening. The floating interest rate on home loan has come back again to 7.25 per cent. In August-November, it had gone up to 7.75 per cent from around 7 per cent. Bankers say that these rates will continue to remain soft in the coming years.

Therefore, all the ingredients for continued growth in the property market are there. 2005 is all set to change the face of suburban Delhi and other metros and A-grade cities.