The country's real estate market is now experiencing a major shift. Amidst rising prices in metro cities, investors and homebuyers are increasingly turning to tier-2 and tier-3 cities.

Property Price Increase : The country's real estate market is now experiencing significant changes. Amidst rising prices in metro cities, investors and homebuyers are increasingly turning to tier-2 and tier-3 cities.

According to a recent report by proptech company Square Yards, land and plot prices in these cities could increase by 25% to 100% over the next two to four years due to improved infrastructure and the development of industrial corridors. Let's learn more about the report...

Rapidly increasing demand in these cities

According to the report, the demand for land and plots has increased rapidly in the last few years in cities like Indore, Jaipur, Bhopal, Nagpur, Chandigarh, Mohali, Lucknow, Raipur, Ludhiana, Patna, Ranchi, Jalandhar and Udaipur.

Rising trend in flat and plot prices

Real estate prices have seen a steady rise in many cities over the past few years. However, plot prices have risen faster than flat prices. For example, in Indore, flat prices have increased by approximately 72 percent, while plot prices have jumped by 85 to 100 percent.

In Jaipur, flat prices have also jumped by 65 percent, while plot prices have seen a 75 to 90 percent increase. Meanwhile, in Chandigarh, flat prices have increased by approximately 44 percent. This trend indicates that investors are now showing greater interest in vacant plots, and their prices are continuing to rise.

Land prices have risen due to infrastructure development.

According to the report, land prices around major infrastructure projects such as metros, expressways, airports, and industrial corridors are seeing a surge, primarily due to the rapid infrastructure development.

New expressways, ring roads, metro networks, logistics parks, and airport projects across the country are improving connectivity in smaller cities, driving up investment demand in these areas and driving up land prices.

What do developers from tier-2 and tier-3 cities say?

Nitin Srivastava, Director and CEO of Greenlands Global Pvt. Ltd., said that Tier-2 and Tier-3 cities are also offering significant opportunities for developers. Land availability in these cities is high, and prices are still quite affordable compared to metro cities.

This is why many developers are now focusing on plotted developments, townships and mid-segment housing projects.

Udit Jain, Managing Director of One Group, said, "Over the past few years, the real estate market in Tier-2 and Tier-3 cities has shown strong growth. Improved infrastructure, the development of new expressways, airports, and industrial corridors have rapidly improved connectivity in these cities. This has directly impacted property demand."

Investment is increasing outside big cities

Kushagra Ansal, director of Ansal Housing, said the biggest reason for the boom in real estate in smaller cities is the increase in economic activity. New industrial clusters, manufacturing hubs, and logistics parks are being developed in many states, which is increasing employment opportunities. As employment increases, so will the demand for residential properties.

"Tier-2 and tier-3 cities are no longer limited to local buyers. People living in larger cities are also showing interest in these markets for investment purposes," said Harvinder Singh Sikka, chairman of the Sikka Group.

Many investors are buying plots in areas where infrastructure projects are likely to be developed in the future.