There was a time when people flocked to cities like Delhi-NCR and Mumbai for a better lifestyle. Today, the pursuit of investment and an improved lifestyle sees people turning away from the hustle and sky-high prices of metros, and moving towards tier-2 cities.
Emerging cities have become epicenters of premium home construction, offering not only lucrative returns but also a superior quality of life compared to metropolitan environments.
At the cost of a 'budget' property in metro cities, investors can purchase premium or luxury properties in tier-2 cities such as Lucknow, Kanpur, Surat, and Jaipur. In these places, 2-BHK flats range between ₹50 to ₹60 lakhs and 3-BHK from ₹70 to ₹80 lakhs, whereas metro city prices soar significantly higher. Furthermore, these cities record a swift annual increase in property prices, with places like Lucknow showing higher growth rates than Delhi, according to MagicBricks.
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Possibility of High Returns:
Due to low initial costs and rapid property value appreciation, tier-2 cities provide higher return potential with less risk for long-term investment. Even moderate value increases result in significant percentage gains, making them an ideal choice for investors.
Rapid Infrastructure Development:
Initiatives by central and state governments, such as Smart City Mission and new expressways, airports, and metro projects, have transformed the infrastructure landscape of tier-2 cities. Cities like Surat, Kanpur, and Lucknow are fast developing as economic hubs, enhancing connectivity, and promoting industrial and commercial growth.
With the rise of IT hubs and new businesses, employment opportunities in these cities have surged, increasing local purchasing power and drawing in labor from other regions. This boost is fueling demand for residential and commercial real estate dramatically.
When it comes to lifestyle, tier-2 cities present a more compelling option over metros, especially with the rise of remote work culture. The pace and density of life in tier-2 cities are less hectic and more serene than in larger metropolitan areas, offering a higher quality of life. Less traffic, reduced pollution, and community-centered environments contribute to a stress-free living experience.
Cost-Effective Living and Financial Independence:
According to Home First Finance, living in tier-2 cities can be 30 to 35 percent cheaper than metros. Lower EMIs and decreased travel and daily expenses mean homeowners in tier-2 cities enjoy greater financial happiness and are better able to save, whereas many in metros cope with heavy EMIs and pricey maintenance.
Availability of Premium Housing:
With lower land costs, developers are now able to offer large and luxurious apartments with modern amenities at affordable prices in tier-2 cities. The budget that buys you a 2-BHK apartment in a metro can afford you a 3 or even 4-BHK premium home in a tier-2 city.
