2024: Real-estate Boom in Tier-2 & Tier-3 Cities
In recent years, the Indian real estate market has undergone a remarkable transformation, particularly in the luxury housing segment. Factors such as rising incomes, growing aspirations for upscale living, and the premiumization trend have fueled a surge in demand for luxury properties. This boom is further propelled by the shortage of luxury apartments in prime locations and the preference for modern amenities and exclusivity.
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Increasing demand for Luxury Real Estate in Non Metro cities
In the latest luxury housing segment, this boom is vividly illustrated by the success of numerous luxury projects near the capital. Consisting of more premium homes, the projects sold out in just days, with a quarter purchased by non-resident Indians (NRIs). This highlights the increasing role of NRIs in the luxury housing market, with their contribution accounting for nearly a fourth of total residential sales at large developers.
Meanwhile, in Tier-2 cities like Chandigarhs Tricity, Lucknow, Nagpur, and Surat, a different narrative unfolds. These cities are experiencing significant growth across diverse industries, presenting lucrative opportunities for real estate investors and developers.
Prateek Mittal, Executive Director of Sushma Group, emphasizes the importance of understanding the dynamics of these emerging markets: “Cities like Chandigarhs Tricity, Ludhiana, Lucknow, Nagpur, and Zirakpur are emerging as hotspots for real estate investment, driven by diverse industries. The increased income and desire for a lavish lifestyle is inspiring more inclination towards Holiday homes and premium residential properties. Our focus has always been to create premium quality products that cater to the growing aspirations of the buyers.”
Investors are eyeing properties beyond metro cities for their potential returns. However, its crucial to mitigate risks through meticulous due diligence. Motiaz emphasizes transparency in projects to ensure investor confidence.
Mukul Bansal, Managing Director of Motia Group, stresses the importance of due diligence in mitigating risks associated with investments outside metro cities: “As urban landscapes evolve, Tier-2 and Tier-3 cities emerge as the new frontier for luxury real estate, offering unparalleled opportunities for growth and investment. We emphasize transparency and legal compliance at the same time top notch quality in all our projects to ensure investor confidence.”
Royale Estate Group, emphasizes market researchs pivotal role in tapping into Tier-2 cities growth potential, to meet urbanization demands, ensuring alignment with market dynamics.
Piyush Kansal, Executive Director of Royale Estate Group, highlights the role of market research in identifying promising opportunities: “The growth trajectory of Tier-2 cities presents lucrative opportunities for real estate developers. Were leveraging insights from industry reports by JLL, Anarock, and Knight Frank to identify promising markets and tailor our projects to meet the evolving demands of urbanization.“
Highlighting sustainable developments role in building vibrant communities amid Tier-2 cities industrial and urban growth. Gillco Group pioneers sustainable practices for luxurious properties.
Tejpreet Singh, Managing Director of Gillco Group, underscores the importance of sustainable development in creating vibrant communities: “As Tier-2 cities witness rapid industrialization and urbanization, theres a surge in demand for luxurious residential and commercial properties. At Gillco Group, were pioneering sustainable development practices to create vibrant communities that align with the long-term vision of these burgeoning cities.“
In this landscape of evolving market dynamics, the luxury real estate sector in India is not only witnessing unprecedented growth but also a shift towards Tier-2 cities, where the fusion of luxury living and sustainable development is shaping the future of urban living.
