The Indian real estate sector is witnessing a major transformation with Tier 2 & Tier 3 cities emerging as the new growth engines. Fuelled by growing population, improved connectivity and rapid urbanization, these cities are not just attracting modern buyers and working professionals from all over the country but also several renowned developers who are eager to tap into these markets for immense capital gains. Owing to their lower cost of living, better work-life balance, quality lifestyle and affordable property rates as compared to other metropolitan cities, Tier 2 cities are positioned to lead the transformation towards the government’s ‘Viksit Bharat’ goal.
As India is expected to urbanize at a rate of more than 50 % by 2050, the focus will significantly shift to Tier 2 cities, making them the next promising destination for real estate investments. Aspirational living is now driving a notable shift towards premium and luxury properties, even in non-metro cities like Lucknow, Jaipur, Pune, Indore, Dehradun, Coimbatore, Kochi, Bhubaneswar, Visakhapatnam and others. Having said that, let’s check out the key housing trends shaping the real estate landscape in Tier 2 and Tier 3 cities:
Key Housing Trends Driving The Growth Of Realty Sector In Tier 2 & Tier 3 Cities
- Integrated Townships
Integrated townships are redefining urban living in Tier 2 and Tier 3 cities, offering individuals a self-sustained ecosystem. These townships provide a holistic living experience, with amenities such as reputable schools, hospitals, shopping malls, and parks conveniently located within the community. Integrated townships not only offer convenience and accessibility but also promote a standard living among residents. By providing self-contained communities with residential, commercial, and recreational properties, these townships cater to different needs and desires of modern homebuyers.
- Low-rise Independent Floors
These suburban areas are providing a sense of ownership and community while escaping the vertical density of high-rise buildings in metros. Therefore, Tier 2 & Tier 3 cities are increasingly becoming a popular choice for modern families and young working professionals. Low-rise independent floors appeal to homebuyers who are looking for a balance between privacy and community living.
- Plotted Developments
Plotted developments offer the freedom of customization, allowing residents to build their own dream home which suits their requirements and budget criteria. In Tier 2 cities, plots are typically available in various different sizes and configurations so that buyers can choose from a wide range of options. Whether you are looking for a quaint cottage nestled amidst lush green landscape or a fancy villa boasting modern amenities, plotted developments cater to diverse tastes and aspirations, making homeownership truly a personal experience.
- Luxurious and Spacious Properties
Reflecting the changing preferences of homebuyers and their evolving lifestyles, spacious homes equipped with top-notch furnishings and amenities are high in demand, especially in the emerging Tier 2 & Tier 3 cities. Homebuyers are no longer content with a mere small 2 BHK apartment in a bustling city like Delhi, Mumbai or Bangalore; they crave indulgence and opulence in every aspect of their homes. From expansive living areas to plush interiors and state-of-the-art fittings, luxury residential properties are redefining the needs of modern buyers.
- Future-ready high-end amenities
Gone are the days when people used to live in old and boring houses and work in a traditional office setup. In this tech-driven era, smart homes, coworking spaces, and recreational facilities are attracting individuals seeking a modern and convenient lifestyle. Hence, besides top Indian cities, Tier 2 & Tier 3 cities are also witnessing a proliferation of smart homes equipped with automation systems, energy-efficient appliances, and advanced security features. Furthermore, latest amenities such as rooftop gardens, infinity pools, and fitness centers cater to the holistic well-being of residents, ensuring a lifestyle of comfort and luxury.
- Natured Inspired Holistic Living
In an era marked by environmental consciousness, nature-inspired living has emerged as a defining trend in suburbs. Several developers are incorporating green spaces, walking trails, and sustainable practices into their projects, envisioning a healthy lifestyle. Not only this, they are also taking eco-friendly initiatives for their new residential projects to foster a symbiotic relationship with nature.
Where Should You Invest Right Now?
Given the current scenario, the Tricity of Punjab, which comprises Chandigarh, Mohali, and Panchkula, stands out as a rapidly developing region with a thriving property market. Due to availability of multiple property options, sound connectivity, and classic amenities, the Tricity region is gaining more traction as a strong investment zone. Therefore, if you are looking to invest in real estate in Tier 2 or Tier 3 cities at the moment, you can consider these hotspots as your next investment destination.