Tricity's Growth: Why Investors are Shifting Focus to Tier-2 Hubs

The Indian tier 2 and 3 cities are emerging as the new growth hubs, attracting both homebuyers and real estate developers looking for better opportunities beyond saturated metro markets. The rising appeal of these cities stems from their affordability, improved infrastructure, and evolving urban lifestyles. With skyrocketing property prices in metropolitan areas, buyers are increasingly drawn to the spacious and cost-effective housing options available in these emerging regions.

No longer seen as secondary or fallback markets, these hubs are emerging as dynamic centers for real estate, commercial, and retail activity. What draws investors here is a compelling mix of fundamentals: properties that offer value without compromise, infrastructure that supports growth, and a lifestyle quotient that rivals larger metros.

According to Magicbricks, India’s real estate investment landscape is undergoing a shift, as Tier-2 cities are outperforming their Tier-1 counterparts in terms of capital appreciation. The report shows the average capital appreciation across Tier-2 cities stands at 17.6 percent, outpacing the national capital’s 11.10 percent.

Meanwhile, as per PropEquity, the Value of homes sold in India’s top 15 Tier-2 cities has increased by 6 percent to Rs. 40,443 crore in Q1 2025, as against Rs. 38,102 crore in the same period last year.

Building on this momentum, the Tricity region, comprising Chandigarh, Mohali, and Panchkula, stands out as a quintessential example of this new Tier-2 appeal. Each city brings a distinct strength: Chandigarh offers meticulously planned urban spaces and a legacy of civic design; Mohali is rapidly evolving into a commercial and IT hub; while Panchkula adds a serene, residential charm with seamless connectivity to its neighbors. Together, they form a cohesive ecosystem where work, leisure, and lifestyle converge; creating an environment that is both aspirational and grounded.

Also Read: Water-Secure Living: Bengaluru Real Estate's New Mission

What makes the Tricity region particularly compelling is its strategic connectivity. Just a few hours from Delhi NCR, and well-linked through national highways, railways, and the Chandigarh airport, the region offers seamless access without the congestion and cost pressures of larger metros.

Mohali’s emerging IT and commercial corridors are drawing corporates, startups, and skilled talent, turning the city into a thriving employment hub. For investors, this ease of movement and access not only enhances the appeal of residential and commercial properties but also reduces perceived risks, making Tricity a market where growth potential and practicality walk hand in hand.

According to ANAROCK’s recent Consumer Sentiment Survey, 26 percent of property investors are now favoring Tier 2 and Tier 3 cities, highlighting a shift in real estate investment trends. Factors such as a burgeoning population, swift urbanization, and enhanced infrastructure are drawing not only new residents but also developers keen to explore the vast opportunities these cities present.

Further, infrastructure has been the quiet engine powering Tricity’s rise as an investment hotspot. From well-planned roads, flyovers, and expressways that seamlessly connect Chandigarh, Mohali, and Panchkula, to the rapid development of IT parks, commercial hubs, and SEZs, the region is shaping itself into a modern urban ecosystem.

Beyond connectivity and infrastructure, Tricity’s appeal increasingly lies in the lifestyle and amenities it offers. Premium housing projects, with integrated townships, clubhouses, and community-centric designs, cater to these expectations while also promising strong long-term rental and resale value, attracting HNIs and NRIs. This lifestyle evolution is mirrored in the commercial and retail landscape: malls, co-working hubs, and branded retail spaces are springing up across Mohali and Chandigarh, drawing national and international brands. For investors, this combination of residential desirability and commercial momentum translates into tangible returns and a confident outlook for the region’s growth.

Additionally, Smart City initiatives are improving Tricity’s infrastructure with better roads, drainage, public transport, and digital connectivity, enhancing the overall quality of life. With world-class infrastructure taking shape, luxury homebuyers are increasingly drawn to these emerging hubs for their convenience and superior livability.

Adding to its investment allure, Tricity is witnessing a steady influx of young professionals, IT employees, and students, creating a dynamic and aspirational urban population. This growing talent pool fuels demand across residential, retail, and office spaces, while also shaping the city’s culture and lifestyle.

Also Read: 5 Housing Trends Shaping India's Real Estate Market

Therefore, Tricity’s evolution from a supportive satellite to a self-sustaining investment hub marks a defining chapter in India’s Tier-2 growth story. Its strength lies in the rare balance it offers—world-class connectivity, an elevated lifestyle, and yet, the accessibility and affordability that larger metros often lack. For investors, the shift toward Tricity and similar Tier-2 hubs is not a pursuit of quick returns, but a confident bet on long-term value creation—on cities that are quietly, but decisively, shaping the future of India’s urban narrative.

About the Author: Udit Jain, Executive Director at One Group Developers oversees strategic planning and project execution for residential and commercial real estate ventures. He is instrumental in driving innovation, ensuring high-quality construction, and enhancing customer experiences across the company’s portfolio. With a strong focus on sustainable development, Udit integrates modern design principles with efficient urban planning.