Indian real estate has revived positively, post the pandemic tenure. Several trends emerged as the outcomes of the adversity led by the pandemic-induced lockdown. Many aspects are presumed to be the growth stimulator for the housing market in India. Among those, the emergence of Tier 2 cities as the hotspot for investment and economic revolt is gaining prominence. Renowned developers and modern homebuyers are shifting their attention toward Tier 2 cities. These developing cities provide ample scope for investment with better returns. It assures proper demand and supply balance. Housing in tier 2 cities has various beneficiary aspects that would benefit developers and homebuyers.
Owing to the developing factor of the Tier 2 cities, they provide a great assurance about flourishing business opportunities and infrastructural upheaval. Thus, people and developers are diverting their focus toward the popular Tier 2 cities for investment, which are now becoming the hotbed of economic activities. Moreover, the government is also incentivizing these developments through its various initiatives. Recently, the central government introduced Urban Infra Development Fund in the Budget to upscale infrastructural developments. This will revamp the developing cities and attract generous investors towards them. Besides, the allocation of Rs. 10,000 crores per year for Tier 2 and Tier 3 cities will bolster the housing demand and amplify the living standards.
Tier 2 cities have become the center of attraction in the residential sector. Modern homebuyers and millennials prefer these cities over metropolitan areas such as Mumbai. They are no longer interested in the congested lifestyle with crowded streets and no privacy. Post-pandemic, people are giving importance to a healthy and sustainable lifestyle. They are inclined to a peaceful surrounding to rekindle their time with family and maintain a proper work-life balance. As compared to metro cities, Tier 2 cities come with a moderate cost of living and housing prices. There is less traffic congestion with low pollution levels. These cities usually enjoy a smooth web of transport networks that enables good connectivity. There are no cluttered streets like the developed ones. Tier 2 cities boast expansive open spaces and green landscapes that make them sustainable places to reside in.
Investment in Tier 2 cities offers and assures a lucrative profit margin. Owing to its developing status, the current cost of housing is comparatively low, which will increase further in the coming time. The infrastructural development surrounding these cities guarantees a better return on investment for homebuyers. On the contrary, Tier 1 cities usually come with buzzing and crowded streets, compact spaces, expensive rates, and no assurance of privacy. There is a lesser range of housing options to choose from in Tier 1 cities. Tier cities provide a plethora of housing options with various configurations in a better location. Moreover, the prices are affordable for even big, spacious homes.
Panvel is one of those cities which have become prominent in the realty market of the Mumbai Metropolitan Region. It has become the epicenter of several ambitious projects and key infrastructural developments. The city offers an extensive green landscape and good transit connectivity. Panvel is well-connected with major cities through various modes of transport. The city foresees enchanting commercial developments that will transform the quality of living. Tier 2 cities provide attractive investment prospects. Thus, modern homebuyers prefer these cities for investment.