Real estate investors in India are looking beyond the big metro cities like Delhi and Mumbai, turning their eyes to smaller Tier 2 and Tier 3 towns. These emerging spots are buzzing with growth thanks to fast-paced infrastructure projects, making them hot picks for homes and offices.
Better roads, expanding metro lines, and more people moving to cities are fueling this shift. Government schemes are also playing a big role in drawing in buyers and builders. As Bhupindra Singh, COO of RISE Infraventures, points out, folks from Tier 1 cities are chasing higher returns—think double-digit gains—in these up-and-coming areas. “Investors have a bigger appetite for risk now, spotting huge potential in non-metro real estate markets,” he says. That said, metros will still lead the pack in total investments.
RISE Infraventures just jumped into the leasing business, focusing on ready-to-rent properties. Singh believes Tier 2 cities will see even more action in the years ahead, driven by ongoing infrastructure boosts. “These areas are gaining serious traction, and the numbers are climbing fast,” he adds. While they won’t overtake metros anytime soon, the investor rush is real.
It’s a two-way street, though. People from Tier 2 and Tier 3 cities are actually investing in Tier 1 spots for steady income, even if the returns aren’t as flashy. “It’s all about what you need—Tier 1 investors want bold growth, while others seek safe, reliable options,” Singh explains.
Adding to the excitement, investor-friendly policies, low interest rates, and upbeat vibes are set to keep the Indian real estate sector soaring for the next 10-15 years. RISE plans to guide ultra-high-net-worth individuals (UHNIs) and family offices toward pre-leased assets that generate quick cash flow.
The market’s on fire right now, with strong demand for offices and homes fueled by India’s stable economy. This boom isn’t just in Tier 1 and Tier 2 cities—it’s spreading nationwide, thanks to better connectivity like new highways and metro expansions.
The Finance Ministry predicts housing demand will hit 93 million units by 2036, a massive opportunity for the sector. Over the last 15 years since 2010, institutional investments have poured in nearly USD 80 billion, according to a Colliers-CREDAI report. Foreign money still rules at 57% of inflows, but domestic players have stepped up big time after the pandemic, shaking up the investment game across property types.
India’s real estate scene has come a long way—from a scattered, unregulated mess in the 1990s to a clear, trusted powerhouse today. Its slice of the country’s GDP has grown from under 5% before 2010 to 6-8% now, adding about USD 0.3 trillion to the economy in 2025 alone. With trends like these, the future looks bright for real estate investments in India.
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