Tier‑2 & Tier‑3 cities emerge as real‑estate hotspots: NRIs, first‑time investors drawn by affordability & growth

Over the last decade, Tier‑2 and Tier‑3 cities have risen high on the real‑estate investment radar. This shift — driven by their affordability, modern infrastructure development, and strong growth potential — has turned real estate there into a much sought‑after asset, not only for Indians, but also for NRIs and first‑time investors. Cities like Mohali, Lucknow, Dehradun, and Indore are leading this transition.

Not just affordability, the potential for appreciation is proving equally persuasive.

"The rise of tier 2 & 3 cities is nothing without the scale of infrastructure development. The network of new expressways like the upcoming Chandigarh-Ambala Greenfield Corridor, promising to ease congestion across Chandigarh, Zirakpur, Panchkula, Mohali, and Kharar, airports in tier 2 & 3 cities, and the creation of industrial corridors such as the one in Zirakpur have also catalysed real estate development,” said Udit Jain, director, ONE Group, in a press release.

Government initiatives such as the Smart Cities Mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have also given further impetus. These are working to recreate 100 cities as more planned and technologically enabled urban centres.

Another silent revolution supporting these markets is the diversification in India’s employment geography. IT parks, logistics hubs, and industrial zones are no longer confined to the metros. This expansion of job opportunities sustains steady housing demand, ensuring property investment is not purely speculative but supported by real economic activity.