Are tier 2 cities the future of Indian real estate?  

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Rajdarbar
Organized real estate players like Rajdarbar Real Estate Group were able to identify such regions ahead of the time to reap the rewards

Organized real estate players like Rajdarbar Real Estate Group were able to identify such regions ahead of the time to reap the rewards

The real estate industry has always been one of the best investment options for the investors. It is less-risky and often proves to be a solid security, especially amidst a volatile market condition. The urban real estate markets have flourished in the last few decades, witnessing a massive growth percentage. However, the trend has started to change with a number of factors leading to holistic growth in Tier 2 and Tier 3 cities.

The government has identified a number of smaller cities across the country to be developed in the coming years. All these cities are driving investments on the back of massive project launches initiated by some of the leading developers. Rajdarbar Real Estate Group is one such realty group that has spurred the growth in Tier 2 and Tier 3 cities with a comprehensive project portfolio. Radhika Garg, a part of the Board of Directors at Rajdarbar Group, feels that the skyrocketing property prices and overburdened infrastructure in the metros, coupled with various other factors have brought about a change in the buyer’s perspective.

The focus has firmly shifted to the smaller cities, especially after the government schemes like AMRUT and Smart Cities Mission were launched. According to a report, real estate investments in Tier 2 cities have increased by approximately 20 per cent over the last year. Radhika Garg believes that Tier 2 and Tier 3 cities like Agra, Gurgaon, Meerut, etc., are not only gaining this traction due to the affordable prices, but also due to the rural road construction, incorporation of massive business establishments, increased employment, cheap cost of living, pollution-free environment, etc.

It is no secret that the organized real estate players like Rajdarbar Real Estate Group, who were able to identify such regions ahead of the time, are expected to reap the rewards from here on. The shift in buyer sentiment, which has been further boosted by the pandemic has created endless possibilities for the investors to seize the advantage in the smaller cities. “The untapped potential of Tier 2 and Tier 3 cities is being realized now and the lack of affordability in the large cities is giving way to increasingly accessible properties in the smaller cities and towns for the investors,” said Radhika Garg.

According to ANAROCK’s Consumer Sentiment Survey – H1 2019, nearly 26 per cent of the property investors preferred Tier 2 and Tier 3 cities a couple of years ago. The figure has almost doubled since the outbreak of the pandemic and the introduction of new reforms and initiatives, with urbanites finding it easier to lead a normal life and access all the services in the smaller cities. Thus, it wouldn’t be an overstatement to say that the smaller cities are likely to witness a higher growth rate, making them the future of Indian real estate.