Capital values in premium localities of Goa, Chandigarh Tricity, and Kochi are now almost at par with key markets in Delhi-NCR and Mumbai Metropolitan Region.
Tier-2 cities like Goa boast robust rental markets with yields as high as 8%, in contrast to 2-3% in major metros.
“The real estate narrative of India is evolving rapidly, with Tier-2 cities like Kochi, Jaipur, Goa, and Chandigarh Tri-city emerging as new growth powerhouses. Our proprietary property buy index reveals Tier-2 cities surpassing the top eight metros by a staggering 88 points, underscoring their increasing prominence and service sector potential,” said Dhruv Agarwala, Group CEO of the company.
Homebuyer preferences are shifting towards high-rise apartments and lifestyle amenities like clubhouses, open spaces, and sports facilities.
“Tier-2 cities are no longer on the sidelines; they are becoming major players, attracting investments and offering attractive opportunities,” Agarwala said.Online property searches by potential buyers in the Rs 1-2 crore segment have surged 61%, while the above INR 2 crore bracket has seen a growth of 121%.“Tier-II cities today are reflecting the preferences of homebuyers that we usually see in major cities with heightened searches for amenity-rich premium homes priced above Rs 2 crore. The search for this price bracket has registered the steepest increase of 121% since the pandemic,” said Ankita Sood, Head of Research at Housing.com.
