Why India’s Tier 2 Cities Are Becoming Real Estate Hotspots

In recent years, Tier 2 cities such as Jaipur, Nagpur, Ahmedabad, Lucknow and Chandigarh have rapidly risen as preferred real estate destinations in India. This shift is driven by a lower cost of living and greater affordability of housing compared to metropolitan areas. Over the past decade, these cities have seen substantial property value appreciation due to steady infrastructure development and growing demand. Additionally, government initiatives targeting infrastructure expansion across Tier 2 and Tier 3 cities have encouraged developers and state governments to focus more on these high-potential, previously under‑served markets.

Key factors fueling this growth include enhanced connectivity, such as expressways, developing industrial hubs and increasing employment opportunities, particularly driven by the rise of start‑ups, industrial sectors, and IT firms in cities like Jaipur, Lucknow and Kochi. Key factors fueling this growth include enhanced connectivity, such as expressways, developing industrial hubs and increasing employment opportunities, particularly driven by the rise of start‑ups, industrial sectors and IT firms in cities like Jaipur, Lucknow and Kochi.