These Tier-2 & Tier-3 Cities are Leaving Delhi, Mumbai Behind in Property Boom

At a time when congestion and inflation in big cities make life more challenging, smaller cities are offering hope. Few small cities have even surpassed Gurgaon-Noida in terms of property prices. Whether it’s a flat, plot or villa, these cities are now providing strong competition to the top metro cities. A trend of residents shifting in small cities is also emerging fast.

Not only are residential and commercial properties on the rise, but a luxury lifestyle has also begun to flourish these cities. Real estate developers are increasingly interested in launching new projects there.

Hotspot For Real Estate

Mid-tier cities such as Faridabad, Lucknow, Vrindavan, Ludhiana, Chandigarh, Indore, Dehradun, Haldwani, Ajmer, and Jaipur are becoming hotspots in the real estate market. According to reports, India’s tier-2 and tier-3 cities have developed rapidly over the past 10 years, and since the Covid-19 pandemic, this progress has outpaced Delhi-NCR.

The cost of operations in these cities is low, and there is an abundance of skilled people. IT parks, industrial areas, and special economic zones are rapidly growing, highlighting the increasing contribution of these smaller cities to the economy. Government schemes such as the Smart City Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have also strengthened the infrastructure.

Facilities Like Big Cities

These smaller cities now even offer the facilities as large metro cities. Be it malls, shopping complexes, sports and entertainment places, best schools and hospitals or anything else, residents get all. Along with this, connectivity with major cities and highways is also improving. With lower pollution levels, people are expecting to lead better and healthy lives in these location.

Mohit Goyal, MD of Omaxe Limited, says, “Tier-2 and tier-3 cities are now turning into urban centers, which is also bringing changes in the real estate sector. Property prices in Ludhiana, Chandigarh, Lucknow, Vrindavan, Indore and many other places have increased manifold. As a developer, we ourselves are now turning more on tier-2 and tier-3 cities rather than metro cities.”

Fulfilling the dream of a low-cost, peaceful life

Kushag Ansal, Director of Ansal Housing states, “Due to the increasing demand for land and houses in small cities, developers are investing on a large scale. As a result, new malls, office spaces and residential colonies are being developed, changing the entire urban landscape of these cities.”

Vansh Kataria, CEO of Tirsya Estate, notes that as big cities becoming expensive, tier-2 and tier-3 cities are emerging as better alternatives. “These cities offer a high quality of life without spending much.” Meanwhile, Piyush Kansal, Executive Director of Royal Estate Group points out that, “Good returns are being generated from low investments in cities like Chandigarh, Mohali, and Ludhiana.”