Tier-2 cities in the country are becoming real estate hubs. Especially after COVID, many companies are looking towards these cities to set up regional satellite offices that are closer and more convenient for their employees. Cities like Ahmedabad, Indore, Jaipur, Kochi, Bhubaneswar, Chandigarh, and Lucknow are included in this trend.
There are five main reasons driving the transformation of these cities into real estate hubs:
1) Improved infrastructure and connectivity: Tier-2 cities have seen significant development in infrastructure and connectivity, making them more attractive.
2) Affordable land and housing: The availability of land at lower prices and accessible housing and office rentals are major factors. According to real estate industry reports, rents in Tier-2 cities are nearly half compared to those in major cities.
3) Availability of skilled workforce: There is a pool of skilled employees available in these areas. Post-COVID, many employees prefer to stay close to their families, prompting companies to adopt work-from-home and hybrid models, leading to the establishment of regional offices in Tier-2 cities.
4) Potential for profitable investments: Investments in Tier-2 cities are expected to yield good returns due to developing infrastructure and the availability of affordable housing.
5) Emerging hotspots: Cities like Ayodhya, Indore, and Kochi, among 13 others, are emerging as real estate hotspots due to these factors.
These trends indicate a significant shift in the real estate landscape, with Tier-2 cities becoming increasingly prominent.
