The large and reasonably priced housing possibilities found in Tier 2 and Tier 3 cities are attracting more and more purchasers as a result of the escalating prices of real estate in metropolitan areas.

Homebuyers and real estate developers looking for chances outside of the crowded metro markets are drawn to India's Tier 2 and Tier 3 cities, which are quickly becoming new growth hubs. They are becoming more and more popular because of a mix of factors including cost, better infrastructure, and changing urban lifestyles. Buyers are lured more and more to the more affordable and roomy home alternatives that these new communities have to offer as real estate prices in urban regions continue to rise.

Up to 44% of the 3,294 acres of land purchased by real estate developers in 2024 were concentrated in the developing centers of India's Tier-2 and Tier-3 towns, according to a CREDAI-Liases Foras study on the real estate industry in 60 Indian cities. According to the research, house sales in 60 cities totaled 681,138 units in 2024, a 23% year-over-year rise. Driven by consistent demand across all categories, the major developers' market saw sales of Rs 7.5 trillion, representing an astounding 43% YoY growth.

Interestingly, the market was dominated by the luxury and ultra-luxury sectors, which accounted for 71% of the overall sales value. Rising wages and ambitions are driving a change in buyer preferences toward luxury living spaces, as seen by the spike in high-end real estate sales.

Additionally, sales of buildings valued between Rs 1 and Rs 2 crore increased by 52%, with 1,32,532 flats sold in 2024, while the ultra-luxury market (Rs 2 crore+) showed a sharp 73% increase. The rapid development of infrastructure in Tier-2 and Tier-3 cities is also a major factor in the rise of luxury real estate.