Tier 2 Cities Outperforming Metros in Property Appreciation - Know Why

The Indian real estate sector is witnessing a notable transformation due to the increase in Tier 2 cities property appreciation. According to a recent report made by Magicbricks, the average capital appreciation in Tier 2 cities has shot up to 17.6 percent, which is higher than Delhi’s 15.7 percent and the national average of 11.1 percent. This sudden change has made real estate in Tier 2 cities a go-to option for investors and property purchasers, where a return on investment is yielded. 

For those who are wondering what tier two cities. Tier 2 cities are those cities that are growing speedily, yet smaller in comparison to metro cities about infrastructure, economy, and population. Lucknow, Indore, Jabalpur, and Coimbatore are considered tier two cities. Even though these cities are smaller than metro regions, the present real estate market has witnessed the tier 2 cities outperforming metros due to their cost efficiency and future opportunities. 

S K Narvar, Group Chairman, Trident Realty, says, “From the past few years, developers, investors, and buyers have been increasingly drawn to Tier 2 and Tier 3 cities for their better quality of life and beautiful environment. These cities are emerging as real estate hotspots, offering immense growth potential and housing options.”