Tier 2 cities in India: Real estate growth in these cities
Amid businesses in India realising the advantages of the work-from-home (WFH) concept in the backdrop of the Coronavirus pandemic, there has been a major shift of the workforce towards tier 2 cities in India. In these tier 2 cities, the cost of living is less, the work-life balance is better and housing remains affordable, as compared to mega cities in spite of a huge jump in values in the past one decade, backed by infrastructure development. This has inspired Indian real estate developers, as well as state governments, to focus more on these tier 2 cities in India which are high-potential and yet, neglected markets.
How COVID-19 has changed buyers’ preferences?
Aditya Kushwaha, CEO and director, Axis Ecorp, points out that the COVID-19 pandemic has altered how we live, work, learn and play. The overall health, hygiene and wellness concerns during COVID-19, have significantly shifted the focus towards spacious homes, set amid verdant greenery, away from densely packed cities. Further, riding on the wave of sustainability and prospective investment, the holiday homes/secondary housing segment has emerged as a sought-after option for buyers, whose jobs and lifestyle have remained unaffected in the wake of pay cuts. People’s preferences have shifted from the tier 1 cities in India to tier 2 cities in India and other tourist destinations, he says. “Investors believe that they can find better entry prices, flexibility and sizable returns in such locations,” he explains, attributing the shift to the concept of remote working.
