Property Price IIncrease: A big change is now being seen in the real estate market of the country. Amid rising prices in metro cities, investors and homebuyers are increasingly turning to tier-2 and tier-3 cities.
According to the latest report of proptech company Square Yards, due to better infrastructure and development of industrial corridors, the prices of land and plots in these cities may increase by 25 percent to 100 percent in the coming 2 to 4 years. Let us know about the report…
Demand is increasing rapidly in these cities
According to the report, the demand for land and plots has increased rapidly in the last few years in cities like Indore, Jaipur, Bhopal, Nagpur, Chandigarh, Mohali, Lucknow, Raipur, Ludhiana, Patna, Ranchi, Jalandhar and Udaipur.
Trend of increasing prices of flats and plots
In the last few years, there has been a continuous rise in real estate prices in many cities. However, the prices of plots have increased faster than those of flats. For example, flat prices in Indore have increased by about 72 percent. Whereas the prices of plots have increased by 85 to 100 percent.
In Jaipur too, flat prices have increased by 65 percent, but plot prices have seen an increase of 75 to 90 percent. At the same time, flat prices in Chandigarh have increased by about 44 percent. This trend shows that investors are now taking more interest in vacant plots and their prices are continuing to rise.
Rise in land prices due to infrastructure development
According to the report, a rise in land prices is being seen around big infrastructure projects like metro, expressway, airport and industrial corridor. The main reason behind this is the rapid infrastructure development.
New expressways, ring roads, metro networks, logistics parks and airport projects across the country are improving the connectivity of small cities. Due to which the demand for investment in these areas is increasing and land prices are continuously going up.
What do developers associated with Tier-2 and Tier-3 cities say?
Nitin Srivastava, Director and CEO of Greenlands Global Private Limited, said that there are huge opportunities for developers in Tier-2 and Tier-3 cities as well. The availability of land in these cities is high and prices are still quite affordable compared to metro cities.
This is why many developers are now focusing on plotted developments, townships and mid-segment housing projects.
Udit Jain, Managing Director, One Group, said that in the last few years, the real estate market in Tier-2 and Tier-3 cities has shown very strong growth. The connectivity of these cities has improved rapidly due to better infrastructure, development of new expressways, airports and industrial corridors. This has had a direct impact on the demand for property.
Investment increasing outside big cities
Ansal Housing Director Kushagra Ansal said that the biggest reason for the real estate boom in small cities is the increase in economic activities. New industrial clusters, manufacturing hubs and logistics parks are being developed in many states. Due to which employment opportunities are increasing. As employment increases, demand for residential property will also increase.
Sikka Group Chairman Harvinder Singh Sikka said, Tier-2 and Tier-3 cities are no longer limited to only local buyers. Now people living in big cities are also showing interest in these markets for investment purposes.
Many investors are buying plots in areas where infrastructure projects are likely to be developed in the future.
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