How Infrastructure is Putting Tier-2 Cities on the Investment Map
Infrastructure Development is transforming Indias Tier-2 Cities into Major Investment Hubs
This transformation is unfolding with particular intensity in India's Tier-2 cities. Long overshadowed by their metropolitan counterparts, cities like Dehradun, Chandigarh, Mohali, and Lucknow are now coming into their own. As per a CREDAI-Liases Foras research report on the real estate sector of 60 Indian cities, as many as 44% of the 3,294 acres of land acquired by real estate developers in 2024 were concentrated in the emerging hubs of India's Tier-2 and Tier-3 cities.
Dehradun, once known for its hill retreat, is now growing as an ideal real estate hub. Homebuyers here are not just investing in property; they are securing a lifestyle enriched by serene landscapes, clean air, and a growing economic ecosystem. The city is seeing a transformative wave of infrastructure development, with the Delhi-Dehradun Expressway standing out as a prime example. The six-lane expressway will significantly reduce travel time between Delhi and Dehradun to just 2.5 hours, making Dehradun a more accessible and attractive location for homebuyers, investors, and businesses. Parallelly, the Dehradun Smart City Mission is upgrading urban infrastructure with modern roads, IT-enabled services, and sustainable public spaces. These developments have triggered a surge in demand for plotted developments, premium apartments, and vacation-style second homes.
Manit Sethi, Director, Excentia Infra, says, 'Dehradun's real estate market is undergoing a comprehensive revolution. With the Delhi-Dehradun expressway nearing completion and smart city initiatives gaining traction, the city is no longer just a weekend escape. We've seen a sharp rise in demand from NCR buyers who want better air, scenic views, and a future-ready address. The city's infrastructure momentum is paving the way for premium projects, offering lifestyle, connectivity, and appreciation potential, all in one. Hence, we believe that as the city gains traction due to its growing infrastructure, the real estate market will continue to grow exponentially.'
According to the latest data from Magic Bricks, the average capital appreciation in tier 2 cities has reached 17.6%, surpassing Delhis 15.7% gain. These cities are witnessing a significant growth in both residential and commercial segments compared to traditional metro markets. Among the leaders, Lucknow has reported substantial year-on-year appreciation rates of 22.61%. This surge is attributed to the expanding infrastructure, growing demand, and the relative affordability of these locations compared to the national capital.
Besides, Lucknow, with its compelling blend of tradition, modernity, and strong infrastructure growth, is seeing a remarkable expansion in its real estate market. Strategic infrastructure projects like the Purvanchal Expressway, Outer Ring Road, and the expanding metro network have drastically improved connectivity within the city and beyond.
Yash Miglani, Managing Director, Migsun Group, says, 'In our opinion, Lucknow is becoming an infrastructure-led investment magnet. We're seeing a dramatic shift in both scale and sentiment, driven by expressways, metro expansion, and strategic ring roads. As developers, we're responding to a market that demands more than just residential spaces – and we believe that thoughtfully designed commercial projects in Lucknow will redefine the city's business landscape in Northern India.'
Moving towards the Tricity region, Chandigarh and Mohali are fast evolving into a high-potential investment belt, driven by a robust pipeline of infrastructure upgrades. The expansion of Chandigarh International Airport has significantly boosted regional connectivity, while developments like PR-5 and PR-7 roads, and other road expansions are vastly improving intra-city access. As a result, the region will continue to stand out as a luxury real estate hub, featuring high-rise gated communities and Grade-A commercial spaces from both investors and end-users.
Piyush Kansal, Executive Director of Royale Estate Group, says, 'We foresee Chandigarh becoming a nucleus of North India's real estate momentum. With the airport expansion and key road infrastructure like PR-7, the region is seeing a strategic shift in buyer interest toward areas like New Chandigarh and Mohali. What were witnessing is a wave of aspirational buyers looking for urban sophistication without Delhi-level chaos, and the upcoming metro will only accelerate this trend. Thus, Chandigarh's planned growth, strong civic infrastructure, and rising connectivity make it a prime zone for both residential and commercial real estate investment.'
'The Indian real estate market in tier 2 cities is experiencing a structural shift driven by infrastructure-led growth. Cities like Ayodhya and Rishikesh are benefiting from better road connectivity, upgraded infrastructure, and evolving civic amenities. The aspiration level of buyers has risen; there's demand for branded developments and integrated townships. We foresee a continued and balanced interest from both locals and NRIs who are looking for quality lifestyle options with assured long-term appreciation,' says, Sakshee Katiyal, Chairperson, Home & Soul.
Therefore, the shift in investor sentiment is unmistakable. Tier-2 cities are no longer seen as secondary options but as strategic investment destinations offering high returns, better quality of life, and fast-improving infrastructure. Backed by aggressive state-level policies, urban planning reforms, and robust private sector participation, these cities are redefining the real estate growth narrative.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
37 minutes ago
- Business Standard
Mittal, Warburg Pincus eye majority stake in Haier India at steep discount
Haier's Chinese parent may offload 49% in Indian arm at ₹6,000 crore, far below its initial $2 bn ask; deal includes brand fees, staff equity, and a planned IPO within 2 years Sharleen Dsouza Dev Chatterjee Mumbai Listen to This Article Sunil Mittal's family office and US-based private equity major Warburg Pincus have submitted a bid to acquire a 49 per cent stake in Haier India at a sharply reduced valuation of ₹6,000 crore ($720 million), according to people familiar with the matter. The Chinese parent, Haier Group, had initially sought a valuation of around $2 billion (₹17,100 crore), but offers were significantly lower, said one of the persons, asking not to be named as the discussions are private. Haier is now weighing whether to proceed with the deal or wait for improved market conditions, the person added. As part of
&w=3840&q=100)
Business Standard
37 minutes ago
- Business Standard
Govt bolsters self-reliance in warfighting with indigenous weapon purchases
The government has greenlit the purchase of a large tranche of weapons and systems through a completely indigenous route. The measure is expected to bolster the armed forces' modern-warfighting capability and boost Indian industry. The Defence Acquisition Council, which is chaired by Defence Minister Rajnath Singh, has approved the acceptance of necessity — a term applied to capital acquisitions — for 10 such proposals worth some ₹1.05 trillion. The goods to be bought under the 'indigenously designed, developed and manufactured' category include armoured recovery vehicles, electronic warfare suites, an integrated common inventory-management system for the three services and surface-to-air missiles. While the Army will get most of these items, some sets of missiles will go to the Indian Air Force, according to two government sources. The new inventory-management system will link defence depots across the country. 'These procurements will provide higher mobility, effective air defence, better supply chain management and augment the operational preparedness of the armed forces,' a Ministry of Defence (MoD) media statement said on Thursday. A focus of this acquisition drive appears to be the Indian Navy's modernisation through increased self-reliance, especially as it seeks to tackle the Chinese Navy's reach in the Indian Ocean region, which is of strategic significance to India. The Navy will get more or new moored mines, mine countermeasure vessels, super rapid gun mounts and submersible autonomous vessels. The MoD statement said such procurements would help to mitigate potential risks posed to Naval and merchant vessels. The moored mines and the mine countermeasure vessels will ensure the safety of warships and merchant ships, especially during navigation around harbours or through heavy- traffic sea lanes, another government source said. The production of the moored mines, which have been developed by the Defence Research and Development Organisation, will be given to domestic companies, for instance. Although Indian ships have not witnessed any publicly known sea-mine attack -- and laying sea mines is usually a wartime activity, with international law requiring countries to declare such areas –future threat assessments have propelled the Navy to enhance its defensive and offensive capabilities. The super rapid gun mount, a primary weapon system of the Indian Navy with anti-aircraft and anti-missile capabilities, and so far, made in collaboration with an Italian company, is expected to be produced completely locally in the future. 'The idea is to have a total solution at home -- whether related to upgrades of the existing system or new installations,' the source said. The Navy is also keen to induct as many submersible autonomous vessels as possible. They are used for detection and surveillance of enemy vessels. Competitive bidding could be expected for most items on the new list of acquisitions, one of the sources said. It could take up to seven years to deliver all the goods to the three services, according to estimates, based on the stages of their development. Despite the success of Operation Sindoor, the country 'is still in catch-up mode' on drones and electronic warfare, Laxman Kumar Behera, associate professor, national security studies, Jawaharlal Nehru University, said. 'The government should fund more defence research in India's private sector,' Behera said. Some 5 per cent of of India's defence budget is spent on research, according to official data.
Time of India
38 minutes ago
- Time of India
'Yes': Indian-origin investor reveals if there is any 'actual American' in Elon Musk's party amid row over Vaibhav Taneja
Social media users said Elon Musk's America Party has so far no Americans. When Elon Musk announced he would be launching a party for Americans following his fallout with President Donald Trump, critics like Steve Bannon, a former Trump adviser, said that Elon Musk himself is not an American. The FEC filing of the party triggered a new controversy as Indian-origin Vaibhav Taneja, who is the chief financial officer of Tesla, was named as the treasurer of the new party. Social media users said none of the names associated with the America Party are American. While Elon Musk was born in South Africa, Taneja was born in India and though they are US citizens, they are not natural-born US citizens. While it became a laughing stock on social media, another Indian-origin techie and investor, who goes by the name Sidharth on X announced that he is also an official member of the American Party. "Are there any actual Americans in the "American" party?" he was asked. "yes they are just not racist towards fellow Americans," Sidharth wrote, adding that he is an American who employs more fellow Americans. Calling himself the "American dream", Sidharth said the "xenophobic" attack on Indian Americans will backfire spectacularly. "The xenophobic attacks against Indian Americans simply for existing and voicing their opinions will backfire spectacularly. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mucus in Lungs? Do This if You Feel Breathlessness Neuracare Learn More Undo Everyone involved in this malicious framing of 'The America Party' will have to deal with the severe consequences of their actions," Sidharth wrote. The Indian-origin investor observed that Indian-Americans are not even allowed dual citizenship unlike the Americans of European origin but their loyalty always gets questioned. "Over 50% of Americans of European origin hold dual citizenship, meaning their loyalty is split between the U.S. and another country. Meanwhile, Indian Americans are not even allowed dual citizenship and yet they remain some of the most loyal, law abiding, and committed Americans you'll ever meet. Let that sink in," he wrote.
