Residential property launch prices across India’s top 10 Tier II cities have witnessed a massive jump, shows a recently released industry report, highlighting the evolving trend of growing prominence of such cities in the real estate market.
According to data analytics firm PropEquity, residential property launch prices across India’s top 10 Tier II cities have witnessed a rise up to 94% in new launch projects in the last five fiscal years ending 2023-24 due to growing consumer confidence, a buoyant job market and robust infrastructure development.
Commenting on the figures, Vijay Harsh Jha, founder and CEO, VS Realtors (I) Pvt Ltd, stated, “As a result of massive infrastructure development and connectivity across India, tier 2 markets and peripheries of metro/tier 1 cities have witnessed strong demand for residential spaces.
“Not just price of new launch projects but also prices in secondary market have seen a steep rise in the last few years. Going forward, several cities will witness availability of high-paying jobs which in turn may force job-seekers to move back to their hometown.”
Yashank Wason, Managing Director, Royal Green Realty stated that this trend is a function of the rising demand of Tier -2 cities by homebuyers, and reflects an evolving trend of Tier-2 cities growing in prominence in the real estate market.
“With hyper-congestion and dwindling quality housing supply in Tier-1 cities, the next generation of homebuyers are increasingly looking towards Tier-2 cities that align with a modern urban lifestyle. Bahadurgarh is a quintessential example of improved connectivity and infrastructure development paving the way for residential property price appreciation.
“Firstly, Bahadurgarh’s strategic location on the western periphery of Delhi provides seamless connectivity to the national capital and other major cities via National Highway 10 and the Delhi Metro’s Green Line. Secondly, Bahadurgarh benefits from significant infrastructural upgrades, including improved road networks, metro connectivity.
“The upcoming Urban Extension Road (UER2), which is expected to significantly reduce travel time from Bahadurgarh to the Indira Gandhi International (IGI) Airport cutting it from two hours to just 20 minutes, is a prime example of this. Additionally, the Kundli-Manesar-Palwal (KMP) Expressway, which will further enhance Bahadurgarh’s connectivity and appeal.
“With the development of these connectivity infrastructure projects, it is highly anticipated that the property prices in Bahadurgarh will see a significant appreciation in the near perceivable future.”