44% of 3,294 Acres Acquired in 2024 by Real Estate Developers in Tier-2 and Tier-3 Cities

New Delhi, March 24, 2025: India’s real estate sector is witnessing a major shift as developers turning their attention to Tier 2 and Tier 3 cities, signaling a new era of growth and opportunity. In 2024, these emerging urban centers accounted for an impressive 44% of the 3,294 acres of land acquired by developers, underscoring their rising prominence in the country’s property market. This trend reflects a strategic move by developers to cater to the growing demand for housing beyond traditional metropolitan hubs.

A recent report by CREDAI-Liases Foras revealed that housing sales across 60 cities reached an impressive 681,138 units in 2024, marking a robust 20% year-on-year growth. Notably, the luxury and ultra-luxury segments dominated the market, contributing to 71% of total sales value. This surge in high-end property transactions highlights a shift in buyer preferences toward premium living spaces, driven by rising incomes and aspirations.

Ashish Agarwal, Director, AU Real Estate – Tier 2 and Tier 3 cities are the future of real estate growth in India. As developers, we’re witnessing a remarkable shift in demand—people are looking beyond metro cities for affordable yet quality living spaces. These emerging urban centers offer immense potential, driven by increasing urbanization and improved infrastructure. It’s exciting to see how these cities are reshaping the market, creating opportunities not just for buyers but for developers to innovate and grow. The charm of these cities lies in their balance between affordability and lifestyle, making them the next big thing in real estate.

Delhi NCR remains at the forefront of this transformation, particularly in the luxury real estate sector. The region has seen remarkable growth in high-value property sales, with a significant portion of homes priced at ₹10 crore or more. Affluent buyers and Non-Resident Indians (NRIs) are fueling this demand, attracted by Delhi NCR’s evolving infrastructure and its reputation as a prime destination for luxury living.

Mr. S.K Narvar, Group Chairman, Trident Realty – From the past few years, developers, investors, and buyers have been increasingly drawn to Tier 2 and Tier 3 cities for their better quality of life and beautiful environment. These cities are emerging as real estate hotspots, offering immense growth potential and housing options. We’ve embraced this trend by developing Trident Hills in Panchkula, a township that reflects the promise of these vibrant urban centers. The shift towards these cities is not just about investment; it’s about creating communities that blend modern living with natural charm, making them the future of India’s real estate landscape.”

Infrastructure development has been pivotal in shaping this narrative. Mega projects such as Jewar International Airport and the RapidX Transit System have significantly enhanced connectivity within NCR and beyond, attracting both residential and commercial investments. The upcoming FNG Expressway is expected to further boost property values by seamlessly linking key urban centers within the region. These developments are not only improving accessibility but also creating new economic opportunities, solidifying Delhi NCR’s position as a real estate hotspot.

Mr. Yashank Wason, Managing Director, Royal Green Realty said, “This is a function of the rising demand of Tier -2 cities by homebuyers, and reflects an evolving trend of Tier-2 cities growing in prominence in the real estate market. With hyper-congestion and dwindling quality housing supply in Tier-1 cities, the next generation of homebuyers are increasingly looking towards Tier-2 cities that align with a modern urban lifestyle. Bahadurgarh and Indore are quintessential example of improved connectivity and infrastructure development paving the way for residential property price appreciation.

Meanwhile, Tier 2 and Tier 3 cities are emerging as vital players in India’s real estate landscape. With affordable housing options and increasing urbanization, these cities are becoming attractive destinations for first-time buyers and investors alike.

The synergy between infrastructure growth and real estate development is redefining the country’s property market. While Delhi NCR leads with its luxury offerings, Tier 2 and Tier 3 cities are carving their niche as essential contributors to India’s real estate future.

Corporate Comm India (CCI Newswire)