Investing in real estate has always been a safe bet. People in India majorly focus on the metro and Tier 1 cities when it comes to property buying as the excellent infrastructure of these prominent cities ensures the best quality, availability of everything, and ease of living. Hence, the value of properties bought in these cities also remains at an all-time high.
However, the big cities that have been for so long regarded as the traditional hotspots for property investment are now sharing their popularity with smaller cities. The revival of Tier 2 & 3 cities has shifted the focus of investors and buyers and brought about uniformity in the real estate sector across the country.
Development in the infrastructure of Tier 2 & 3 cities
A number of Tier 2 & 3 cities in India are at the nascent stage in terms of infrastructural development. The government initiatives such as Smart Cities Mission have resulted in the revival of these small cities by providing them various urban services and developments.
Today, investors are attracted to the Tier 2 & 3 cities and infrastructure plays a key role in it. The process to develop these cities is quite new yet a rapid one. Therefore, the land prices are still affordable and available in abundance for investors to construct projects. Buyers, on the other hand, look forward to buying properties and living in these promising regions.
The ongoing construction of the metro system and highways remain one of the most game-changing developments by the government in several small smart cities. Some of them are now excellently connected to major cities through highways. The ease of connectivity and transportation have enabled many businesses to establish and flourish. It has further improved the employment rate and boosted the housing and rental real estate market.
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The best time for investors to thrive by investing in Tier 2 & 3 cities
With the real estate sector still in its raw state in the growing Tier 2 & 3 cities, investors have immense opportunity to experiment in terms of introducing new concepts of housing and commercial structures. The opportunity is equally great for NRI investors as the government policies are favorable and transparent.
The cities that have become the hot favorite destinations for real estate include Lucknow, Jaipur, Mohali, Chandigarh, Ahmedabad, Kochi, Indore, Sonipat, and Amritsar. The land available is abundant and affordable. These cities also have the advantage of being located not so far from the highly developed larger cities. Buyers who cannot afford to buy property in a big city tend to prefer nearby regions for living where the property cost is reasonable.
The scope for investors in Tier 2 & 3 cities remains huge compared to metro and Tier 1 cities where the cost of real estate is either high or the industry has reached its saturation point. For a modest investment, smaller cities in India are the best real estate investment market.