Tier 2 cities are becoming a hotspot for stimulating funds and growth in the Indian real estate sector as well as the economy. With the government’s supportive initiatives for rapid urban planning and development of such cities and NRI’s fueling the cities with investment, the tier 2 cities and tier 3 cities are surging towards modern development. Despite being reputed and modernized, metro cities are being underscored by these Tier 2 cities in India and internationally as well. The ease of living and sustainability make those cities viable for residing. The proper work-life balance with a peaceful lifestyle adds up to the advantage of these cities.
Favouring factors – When it comes to living in a metro city’s high-paced life, traffic hurdles and the hustling crowds always come first in the picture. The commuting period in Tier 1 cities levels up the stressful hours of work-life for working professionals. There is no way to expect mental peace in these continuously bustling cities. Thus, working professionals are diverting their attention towards the developing cities which have assured foreseen growth. Tier 2 cities, which are on the verge of development, comprise basic infrastructure, decent amenities, public utilities and transit connectivity to all major junctions. The transit network is balanced in such cities. No major traffic glitches which save commuting time and control pollution levels in the region.
Infrastructure – Tier 2 cities are equipped with ample infrastructural facilities. The central and state governments are also taking initiatives to develop an industrial base, commercial and educational institutions in these cities. They are planning to set up major IT hubs and business centres in the cities to ease the burden of Tier 1 cities. Proper infrastructure and resources available at lower cost make these cities preferable among working professionals as well as first time home buyers.
Government initiatives – The government is already focused on tier 2 cities for start-ups and exploring new investment options there. The Union Commerce Minister had even called for global venture capital to entice funds for the same, as a part of the government’s ‘Startup India Innovation Week’. Around 45% of India’s recognized startups are emerging from Tier 2 & 3 cities. The respective state governments are setting up commercial and industrial bases, business centres and vital markets in Tier 2 cities, foreseeing a long-run growth and scope from these regions. These cities are believed to have a huge potential for capital infusion through various aspects. Further, the government had made certain reforms for ease of doing business and to boost commercial and residential spaces in these cities.
NRI Investment – Among other factors, NRIs are fuelling the funds in the real estate of Tier 2 cities. Owing to the pandemic tenure and the work from home trend, NRIs are diverting towards their hometowns as a safer haven. With reputed builders and developers introducing their lavish projects and exploring the markets, this has urged NRIs to experiment in these cities with their investments. As these cities are emerging real estate markets, they find them as a safer and more affordable option with assured future growth and rental yields as well. These cities are developing rapidly thus, NRIs are looking forward to these cities on a long-term basis as a suitable retirement as well.
Sustainable Environment – As mentioned earlier, these cities have a low population as compared to modernised metro cities. These cities are breathable with an abundance of space and green patches. Though they have industrial bases, the pollution level is less as compared to mega-cities like Mumbai, Kolkata and Delhi. The liveability in Tier 2 cities is much better than in the Tier ones. Clean air, clean water, decongested roads, fewer crowds and limited noise pollution make them more liveable among people. People who have long been residing in metro cities are now looking towards these developing cities as a suitable option for sustainable living. Communal bonding is way better. Tier cities have good connectivity with major cities and proper access to necessary social facilities such as medical care, education, recreational etc. Lucrative job opportunities are emerging in these cities, as business and finance stalwarts have been setting up their bases here. It provides ease of living for people and a sense of mental peace.
