By Mr. Umang Jindal, CEO of Homeland Group
India’s premium real estate narrative had, for years, revolved around its largest cities. Mumbai, Delhi, and Bengaluru dominated debates about luxury housing. They set the standards and attracted high-end buyers. But fast forward, everything is changing.
Industry veterans of decades recognise that Tier-II cities are currently spearheading a quiet but strong revolution. This is not a brief phase or a fleeting trend; it’s a structural shift in how and where Indians want to live.
From the kingly elegance of Lucknow to the business energy of Coimbatore and the college-town vibes of Pune, small cities are no longer mere supporting actors in the urban drama of India. They are beginning to take centre stage.
A Changing Definition of Quality Living
One of the largest inducements for this change happened during the pandemic. It made people rethink how they viewed the world around them. A lot of people realized that a huge apartment in a busy metro did not necessarily mean a better life. Builders have seen a trend toward more space, fresh air, and greater community ties.
High-net-worth individuals (HNIs) and young professionals, particularly with flexible work schedules, are doing something different today. They’re relocating to cities where they can achieve balance, quality infrastructure, contemporary amenities, and a slower, healthier lifestyle. For most, the dream house is now one where one can breathe, rather than merely impress.
What’s also driving this change is the emergence of local economies. Tier-II cities are no longer merely talent suppliers to the metros. They’ve become growth hubs in their own right. Investment in IT parks, manufacturing facilities, and education hubs has generated a new class of wealthy buyers who are confident, worldly, and firmly based in their hometowns.
According to PropEquity data, markets like Ahmedabad, Vadodara, and Jaipur have registered a healthy increase in housing demand as well as new launches. Interestingly, it is not just being led by comeback NRIs or corporate honchos; it is also entrepreneurs, professionals, and second-generation business houses who aspire for a high-end address in the city where they were raised.
Infrastructure as a Growth Enabler
Infrastructure has been the other major story here. The Smart Cities Mission and the Urban Infrastructure Development Fund have transformed the physical and civic face of a number of Tier-II cities. New airports, upgraded expressways, and expanding metro lines are getting them closer, both physically and economically, to large business centers.
Industry reports confirm this trend. Cushman & Wakefield estimates that real estate’s contribution to the GDP of India can double by 2030, thanks largely to growth in smaller cities. For developers, that’s a message that these markets are not speculative, they’re stable and ripe for long-term investment.
High-end property in Tier-II cities has moved beyond the concept of simply providing more room or nicer finishes. It’s now about building a community that embodies the dreams of a new generation.
Developers have come to understand that luxury in these marketplaces has a more intimate definition; it’s about comfort, connection, and pride of ownership.
The shift to Tier-II cities is not a fleeting trend. It’s being driven by long-term changes in infrastructure, economy, and consumer lifestyle. Developers who have operated both in the metro and emerging markets are convinced that success in the coming decade would rely on knowing what every city represents, its tempo, its citizens, and its aspirations.
