The soaring property prices in metropolitan areas have made it nearly impossible for the average middle-class individual to own a home. Purchasing property in cities such as Delhi, Noida, and Mumbai has become exorbitantly expensive. As a result, investors and buyers are turning their attention to tier-2 cities where property demand has surged over the last few years. Cities like Lucknow, Jaipur, Chandigarh, Pune, and Prayagraj are emerging as new hotspots for property investments. But what draws people to these cities? Here's what experts have to say.
According to property expert Pradeep Mishra, tier-2 cities have offered up to 100% returns for investors in recent years. Since 2010-11, property prices in these locations have increased by up to two and a half times. It's not just land; prices for flats in high-rise buildings have also seen a swift rise. Furthermore, the demand for rental properties in these cities is significantly high, providing investors with dual benefits of capital gains and rental income.
Lower Property Rates
Pradeep states that tier-2 cities have significant developmental potential. Numerous projects are driving rapid infrastructure growth, connecting these cities via expressways and air routes, thereby easing accessibility. Meanwhile, property prices in metro cities and their suburbs have skyrocketed, making investment a challenging endeavor.
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In tier-2 cities, properties remain affordable. A two-bedroom can be acquired for 50 to 60 lakh rupees, and a three-bedroom costs between 70 to 80 lakh. In contrast, cities like Delhi, Gurgaon, Mumbai, and Chennai have witnessed drastic price hikes over the past years. Even for a two-bedroom flat, end-users or investors must budget over a hundred lakh rupees. Consequently, many are considering these cities, as they offer affordable property options that align with the budget of homebuyers.
Rise in Job Opportunities
Moreover, employment opportunities in tier-2 cities have increased in recent years. Religious sites have drawn more tourists, and industrial and service sector growth has boosted job prospects. Numerous companies are setting up manufacturing units in these cities, driven by state-offered incentives. Affordable prices, excellent returns, infrastructure development, and rising job opportunities make tier-2 cities ideal for property investment.
