Investing in real estate? Here’s why non-metro cities are your golden ticket!
Real estate markets in non-metros or Tier-2 cities continue to grow by leaps and bounds, in the process outperforming many metros in terms of investment and demand growth. This massive rise in real estate investment in non-metros can be attributed to various factors.
A recent analysis by Cushman and Wakefield, together with the Confederation of Real Estate Developers’ Associations of India (CREDAI), reveals that approximately 35% of India’s population currently resides in urban areas, with projections suggesting this will increase to 50% by 2050.
This population growth is exerting significant pressure on Tier-1 cities, where space is becoming increasingly scarce. Consequently, there is a heightened focus on developing alternative urban areas that are likely to become new economic and real estate hubs. These areas are identified as Tier-2 cities. According to CREDAI, by 2050, India’s urbanization rate is expected to surpass 50%, which could lead a significant migration of population towards Tier-2 cities.
Also Read: Real estate poised for a big leap: How this will contribute to India’s growth
Mananki Parulekar, Co-Founder, Claravest Technologies, has shared her insights on factors that are driving real estate investment growth in Tier-2 cities.
Supporting the growth of Tier-2 cities is the rise of integrated townships, which offer a blend of residential and commercial spaces, according to Parulekar. “For instance, places like Panvel in Navi Mumbai are developing rapidly, with townships such as Hiranandani and Godrej, further spurred by developments like the Navi Mumbai International Airport and Atal Setu Bridge (MTHL).”
Other cities like Jaipur, Bhubaneswar, Nagpur, Surat and Kochi are also experiencing accelerated
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