Tier II/III Development: Unlocking Growth & Value

In an interaction with Adlin Pertishya Jebaraj, correspondent of Homes India Magazine, Rajesh Damani, Managing Director & Founder, Jamshri Realty Ltd, highlights how Tier II and III cities are fast emerging as India’s most promising real estate growth centers, driven by infrastructure, lifestyle aspirations, and community-led living.

Rajesh Damani is a seasoned business leader with over thirty years of experience within the Textiles and Metals industries. He offers a new commercial, retail, hospitality, and sports complex that is changing the urban landscape of Solapur. Rajesh continues to champion community-led, sustainable regional development, inductive industry evolution, and support the next generation of Solapur.

How do you see the current market trend in Tier II and Tier III cities evolving as key growth centers in India’s real estate and housing ecosystem?

In my view, Tier II and Tier III cities are moving from the periphery to the centre of India’s real estate story. Infrastructure investment, better digital connectivity, and growing local industries are creating stable employment bases. Families that once felt compelled to migrate to metros are now choosing their roots over displacement. This shift is fundamental, not fleeting.

We see rising demand for organised retail, quality wellness options, and a planned housing system within the same campus. People want shorter commutes, more green cover, and spaces where children and elders can thrive together. For us, mixed-use ecosystems are the natural response. They allow retail, wellness, education, and housing to coexist in a way that honours both economic aspiration and environmental responsibility.

There is also a quiet yet powerful spiritual dimension to this ecosystem. Smaller cities still value community life, festivals, and daily rituals. When we design integrated townships in such locations, we are curating commercially thriving social environments where human relationships, nature, and wellness can support one another.

What are the major urban planning or land acquisition issues that developers must navigate while entering smaller city markets?

Land aggregation can be a challenge in emerging cities like Solapur. Land parcels are often fragmented across families and entities. Clear title, layered inheritances, and informal understandings within families must be resolved with sensitivity, not aggression. In my experience, transparency and long-term partnership usually work better than opportunistic deals.

Alignment with the city’s ecological and cultural memory is equally important. Old trees, water bodies, temple streets, and traditional markets carry emotional weight. If we respect these while planning the mixed-use ecosystems, approvals and community support both become easier. Ultimately, the goal is to show that responsible development can improve livelihoods, protect the environment, and preserve the dignity of the town’s heritage.

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Can modular construction, green building technologies, or AI-based design tools help to bridge cost and quality gaps in Tier II/III housing projects?

I believe newer tools can be powerful enablers. Modular construction can shorten timelines, improve quality control, and reduce on-site wastage. This is very relevant in smaller cities where skilled labour may be limited, and cost overruns can damage project viability.

Green building technologies, from passive design to efficient materials and on-site renewables, directly reduce life cycle costs for homebuyers. Costs of living and climate patterns are changing rapidly, making this a practical necessity as well as a moral responsibility.

AI-based design tools can help us optimize layouts, daylight, ventilation, and even traffic movement within mixed-use campuses. Yet the soul of the project must still come from human experience, interaction, and insight. For instance, our effort at Jamshri is to use technology to create healthier, more spiritual, and environmentally conscious communities, where residents feel that their home contributes positively to both the planet and their inner life.

How has the profile of homebuyers in Tier II/III cities changed—especially in terms of preferences, purchasing power, and aspirations?

The homebuyer in smaller cities today is far more informed and aspirational than a decade ago. They travel, follow global trends on their phones, and compare offerings across markets. They expect modern design, reliable amenities, clear documentation, and professional maintenance, while still valuing trust and personal relationships.

We see young professionals and business families asking for well-planned two- and three-bedroom homes within integrated townships that include retail, sports, clubs, and green open spaces. They are willing to pay a premium price for safety, walkability, and a child-friendly environment. At the same time, they remain rooted in family and tradition. Proximity to places of worship, community spaces, and venues for festivals still matters deeply.

Purchasing power has improved, often supported by dual incomes and better access to housing finance. Yet buyers are cautious about overstretching. This is why the mixed-use ecosystem approach focuses on long-term value, energy efficiency, and a sense of emotional belonging, rather than just glossy marketing.

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How do you see the next wave of urban growth unfolding—will Tier II/III cities become the new engines of India’s housing boom?

I am convinced that the next meaningful wave of urban growth will be led by Tier II and Tier III cities. Metros are already struggling with congestion, stress, and environmental strain. Smaller cities still offer the possibility of balance. With the right planning, they can absorb growth without sacrificing quality of life. This redistribution will also make IT/BFSI firms more competitive within the context of today’s volatile industry outlook.

For developers like us, this is both an opportunity and a responsibility. The mixed-use ecosystem vision aims to bring together housing, retail, wellness, education, and green infrastructure on a single canvas. Solar energy, thoughtful landscapes, and water-sensitive design are as important as floor plans and brand signage.

We also draw from India’s spiritual traditions, which emphasize harmony between human activity and nature. A township should encourage morning walks under trees, shared celebrations, quiet corners for reflection, and spaces where children can grow close to the soil. If we can deliver this consistently in emerging towns, these cities will indeed become the true engines of India’s housing boom and its social renewal.