Real estate investors in India are increasingly moving towards tier 2 cities to make investments because of lower land costs, unexploited growth prospects and government backing for infrastructure creation. The real estate industry in India is going through some major transformations. The country is seeing real estate investors shifting their investment preferences more towards tier 2 cities. Let us focus on the factors that are influencing these shifts in the investment preferences of investors.
Traditionally tier 1 cities like Mumbai, Bangalore and Delhi have always been the first preference of real estate investors. However, things are now changing with availability of land and better prices in tier 2 cities. The affordability that tier 2 cities offer is a key factor. Moreover the land availability in tier 2 cities presents a significant growth potential. These cities are expanding their boundaries, developing new residential land and offering modern infrastructure at a fraction of the cost of tier 1 cities.
Several government initiatives have also been pivotal in boosting the real estate in tier 2 cities. The “Smart Cities Mission” and the “Atal Mission for Rejuvenation and Urban Transformation”(AMRUT) have been driving urban development in these regions, ensuring better infrastructure, public transportation and amenities.
One of the key attractions for real estate in tier 2 cities is the improved quality of life they offer. Developer investments in cities like Panchkula, Panipat, Ludhiana, Mohali, Rudrapur, and Sonipat are driven by improved infrastructure and connectivity besides affordability and aspirational middle-class buyers seeking to own homes. With less congestion, better air quality and lower crime rates, these cities are more appealing to families and professionals. Many tier 2 cities are also focusing on developing more and more green spaces, recreational areas and sustainable infrastructure, further enhancing their livability quotient. Mohali is one fine present day example of a tier 2 city with green spaces, educational institutes, healthcare facilities and entertainment hubs.
As tier 2 cities continue to grow and develop, their real estate markets are sure to become the next big thing in India. Investors and developers are increasingly recognizing the potential of these cities every year. Tier 2 cities are transforming into vibrant hubs of growth, offering a win-win scenario for everyone involved in the real estate ecosystem.
For anyone looking to invest in real estate or find a new home, these emerging cities present an exciting opportunity to be a part of India’s next phase of urban development.