In recent years, India’s smaller cities have seen a major boom in their property markets. With rising costs and overcrowding in metro cities like Delhi and Mumbai, many homebuyers and investors are turning towards tier-2 and tier-3 cities, which are becoming popular for affordable yet high-quality living spaces. These cities are not just attracting homebuyers but also developers, who are increasingly focusing on these emerging markets for their new projects.
Cities Leading the Real Estate Growth
Cities like Faridabad, Lucknow, Ludhiana, Indore, Jaipur, and Dehradun are becoming prominent real estate hubs. According to industry reports, these smaller cities have witnessed rapid growth in property demand over the past decade, especially after the Covid-19 pandemic. As people seek better quality of life, these cities are fast evolving into urban centers with modern facilities.
Key reasons driving this growth include:
- Lower cost of living compared to big cities.
- Expanding industrial zones, IT parks, and special economic areas that generate employment.
- Improved infrastructure through government schemes like Smart City Mission and AMRUT, boosting urban development.
Metro-Like Amenities in Small Cities
One of the major factors making these small cities attractive is the availability of facilities that rival those of metro cities. From shopping malls, entertainment centers, and educational institutions to top-tier hospitals, these cities offer modern conveniences and services. Additionally, the lower pollution levels and better air quality make them ideal for those seeking a healthier lifestyle.
In cities like Chandigarh, Lucknow, and Indore, real estate prices are rising fast, thanks to increased demand for homes and office spaces. This surge in development has led to the construction of new residential colonies, commercial complexes, and luxury villas, attracting both homebuyers and real estate investors.
Developers Shifting Focus to Smaller Cities
Real estate developers are taking notice of this trend. Mohit Goyal, MD of Omaxe Limited, highlighted how tier-2 and tier-3 cities are transforming into urban centers, significantly affecting the real estate market. Developers are shifting their focus from traditional metro areas to these smaller cities, acknowledging the rising demand for residential and commercial spaces.
Kushag Ansal, Director of Ansal Housing, noted that as demand for land and homes increases, developers are investing heavily in these areas. This influx of investment is leading to the establishment of new malls, office spaces, and residential colonies, fundamentally changing the landscape of these cities.
