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The overall recovery in the real estate sector in 2023, after the downturn in business during the COVID-19 pandemic has simply been phenomenal, with the residential real estate market witnessing an increase of 36% compared to 2022.
The real estate sector is booming like never before in Tier 2 and Tier 3 cities, with growth opportunities at an all-time high in these urban centres. Some factors that have fuelled this growth include robust infrastructure development, major companies eyeing cost-effective operational bases, better connectivity through new roads and rail networks, development of industrial corridors, and reverse migration caused by hybrid work arrangements, leading to the emergence of an ecosystem enabling businesses to thrive in Tier 2 and Tier 3 cities. With these factors, India is ready to utilise the potential that these cities have to offer. With the interplay of enhanced government focus towards these cities, coupled with an increased advanced technology framework, India is set to witness the transformation journey of small towns and cities.
By 2047, India will be home to 1.6 billion people with 50-60% population living in urban cities. With such growth prospects, modified ways of working, and improved infrastructure and connectivity framework between cities, several denizens of Tier 2 and Tier 3 cities are increasingly displaying interest in purchasing properties in upcoming integrated townships and group housing communities, thus indicating a strategic shift in how these cities are now perceived.
