India’s real estate market has grown significantly in major Tier 2 and 3 cities. This surge can be attributed to infrastructure development, including improved connectivity through new roads, railways, and rapid rail transport. The rising realty prices in major cities have also propelled the demand for affordable spaces in Tier 2 and 3 cities. To meet these demands, real estate developers are extending their footprints and transforming these cities into new frontiers of real estate development.
“Infrastructure development and the presence of large corporations and industrial houses looking for affordable spaces have fueled the growth of real estate in Tier 2 and 3 cities in India. Improved connectivity through new roads, rail, and rapid rail transport has played a significant role in this boom. These cities are witnessing a high demand for integrated residential spaces like integrated townships and group housings, which offer a comprehensive range of facilities, including large green and
“The pandemic has further highlighted the importance of community living with large open spaces with in-house facilties and security, leading to their immense popularity among a diverse audience,” he adds.
The Indian government has actively promoted infrastructural development in Tier 2 and 3 cities. In the Union Budget 2023-24, Finance Minister Nirmala Sitharaman announced the establishment of an Urban Infrastructure Development Fund (UIDF) utilizing the priority sector lending shortfall. The UIDF, managed by the National Housing Bank, aims to support public agencies in creating urban infrastructure across these cities. Such initiatives enhance the overall growth potential of these areas and present significant opportunities for the real estate market.
“The establishment of the Urban Infrastructure Development Fund (UIDF) reflects the Indian government’s commitment to promoting infrastructural development in Tier 2 and 3 cities. This initiative presents significant opportunities for the real estate market and enhances the overall growth potential of these cities. The government’s proactive approach in investing in urban infrastructure will undoubtedly contribute to the development and transformation of Tier 2 and 3 cities into thriving real estate destinations,” says Radheecka Rakesh Garg, Director, Rajdarbar Realty.
Analysts believe Tier 2 and 3 cities, often located in industrial corridors, hold immense potential for future economic growth and real estate development. As infrastructure improves and industries expand, these cities become attractive investment destinations. The availability of affordable spaces and increased job opportunities further contribute to their growth potential, making them promising real estate markets in India.
“Tier 2 and 3 cities in industrial corridors offer immense potential for economic growth and real estate development. With improving infrastructure, expanding industries, affordable spaces, and increased job opportunities, these cities have become promising investment destinations and home to many new start-ups. As a result, Tier 2 and 3 cities are emerging as the next frontier of growth and hold great prospects for the real estate market in India,” says Tejpreet Singh Gill, MD of Gillco Group.
“The Indian government’s focus on infrastructural development in Tier 2 and 3 cities, supported by the Urban Infrastructure Development Fund (UIDF), will significantly boost the real estate sector. The development of urban infrastructure coupled with people’s preference for an integrated lifestyle and in-campus amenities offered by townships will attract investments and increase the demand for real estate properties,” says Prateek Mittal, Executive Director, Sushma Group.
Copyright © 2024 HomesIndiaMagazine. All Rights Reserved.
