Housing.com- Tier 2 cities in India: Real estate growth in these cities
In recent years, there has been a major preference by home seekers, especially among working population, for tier 2 cities in India. The lower cost of living and affordability of housing in tier 2 cities compared to the mega cities is a major reason for this shift. However, there has been a significant rise in property values in these cities in the past one decade, backed by infrastructure development. This has inspired Indian real estate developers, as well as state governments, to focus more on these tier 2 cities in India which are high-potential and yet, neglected markets. Cities such as Jaipur, Nagpur Ahmedabad, Lucknow and Chandigarh are fast emerging as preferred real estate destinations.
For example, in a tourist state like Goa, the government has been working in partnership with Software Technology Parks of India (STPI) to create the infrastructure to facilitate software exports and promote tech entrepreneurship in the region. As tech companies become location agnostic, options like Goa could attract more investment. Many other states are working to incentivise manufacturing in their key tier 2 cities, as part of the Make in India programme. Analysts maintain that such tier 2 cities in India, which may also be part of industrial corridors, could be hotbeds for future growth of the economy and the real estate market in particular.
