Source: Financial Express ( https://bit.ly/4jgP9xc )

As affordability, connectivity, and luxury converge, Tier 2 cities are no longer secondary choices; they are the future of real estate in India. With skyrocketing property prices in metropolitan areas, buyers are increasingly drawn to the spacious and cost-effective housing options available in Tier 2 and 3 cities.

Tier 2 and Tier 3 cities in India are rapidly emerging as new growth hubs, attracting both homebuyers and real estate developers seeking opportunities beyond the saturated metro markets. Their rising appeal lies in a combination of affordability, improved infrastructure, and evolving urban lifestyles. As property prices continue to soar in metropolitan areas, buyers are increasingly drawn to the more spacious and cost-effective housing options these emerging cities offer.

As per a CREDAI-Liases Foras research report on the real estate sector of 60 Indian cities, as many as 44% of the 3,294 acres of land acquired by real estate developers in 2024 were concentrated in the emerging hubs of India’s Tier-2 and Tier-3 cities. The report said housing sales in 2024 reached 681,138 units across 60 cities, recording a 23% Y-o-Y increase. The primary developers’ market registered a sales value of Rs 7.5 trillion, reflecting a staggering 43% YoY growth, propelled by sustained demand across segments.

The shift of real estate toward Tier 2 and 3 cities is more than just a trend—it’s a fundamental transformation in how and where people choose to live and invest. With rapid infrastructure expansion, rising disposable incomes, and changing lifestyle preferences, these cities are emerging as the next big growth hubs. As affordability, connectivity, and luxury converge, Tier 2 cities are no longer secondary choices; they are the future of real estate in India, offering unmatched opportunities for homebuyers and investors.