Tier 2 cities may become the future destination of premium housing in India
February 26, 2021 12:57 PM
Today’s discerning customers aspire for premium residential spaces which are built in line with global standards, coupled with latest facilities to satiate the demands of contemporary and opulent lifestyle.
Homebuyers now prefer spacious apartments in emerging locations than investing in smaller homes in expensive locations.
The Finance Minister’s decision in the Union Budget 2021 to provide impetus for infrastructural development has opened endless vistas of growth in the premium housing segment of India’s tier-2 cities. As silhouettes of the coronavirus pandemic are still lingering on, the extended work-from-home culture is driving working professionals to explore new investment avenues in their native regions.
Today’s discerning customers aspire for premium residential spaces which are built in line with global standards, coupled with latest facilities to satiate the demands of contemporary and opulent lifestyle. Making no compromise with luxury and comfort, the end-users are now willing to go an extra mile for world-class facilities in residential spaces. As more professionals are now deciding to stay back in their hometowns, the demand for premium spaces in tier-2 cities is witnessing a boom as compared to tier-1 cities, which have already exhausted all the growth potentials, including available and affordable land spaces.
Additionally, investments in warehousing spaces, by domestic and foreign players like IKEA, Amazon, Flipkart, Big Basket etc, have also given a fillip to Tier 2 cities. Typically, they need last-mile connectivity and storage to fulfil ever increasing demand for online purchasing. The requirement of dry and refrigerated warehouses pan-India has shown a growth momentum in the last few years and majority of it is driven by Tier 2 cities as the cost of setting up such a venture is easier due to lower cost of land.
Furthermore, the work-from-home culture has enabled enterprises to reinvent their approach towards work culture in a post-pandemic world, further encouraging them to set up modern workplaces at emerging locations. To cater to the changing aspirations of homebuyers, trusted developers are constantly working to knit all the features and resources together to offer metro-like living in Tier-2 cities. Popular metropolises are densely populated and have higher living expenses, and city planners opine that economic activities and infrastructural development in lesser populated cities like Meerut, Karnal, Amritsar, Jaipur, among others, could enhance standard of living and make them future destinations of premium housing in India.
Growth in premium housing in Tier-2 cities
Homebuyers now prefer spacious apartments in emerging locations than investing in smaller homes in expensive locations. Major development works in Tier-2 cities like IT hubs, manufacturing units, road and metro infra, among others, have played a significant role in supporting the growth of the premium residential market in these regions. Furthermore, property prices here are always lesser than Tier-1 cities and they also come with attractive offerings like open spaces, community living, staying closer to family, clean environment, among others. Improved transportation facilities, availability of basic infrastructures like schools, hospitals, banks, and shopping centres, have further catapulted the demand from prospective homebuyers who are looking for investment opportunities with higher returns.
Connectivity will play a key role in coming days
Most Indian state capitals and popular cities now have airports, industries, improved healthcare facilities, education and research institutes which largely impact buyers’ preferences. Furthermore, the government in the budget has given impetus to better connectivity by introducing advanced technologies in metro rail services like MetroLite and MetroNeo in Tier-2 cities and peripheral areas of Tier-1 cities. These advancements will provide the same experience, convenience and safety to commuters, ensuring their seamless movement at lesser costs.
What homebuyers prefer in premium housing?
The customers willing to invest in premium residential spaces in Tier-2 cities look for branded residences and designer flats without compromising on the luxury aspects. Modern security systems, automated doors, fire detectors, contactless devices, gymnasiums, spas, playing area, golf courses, swimming pool, elevators are on their lists. Most of them also desire for a dedicated space for their pet animals so that their quality of living with their loved ones remains unaffected. Modern conscious customers opt for sustainable luxury features which include locally sourced materials, LED lighting, kitchen gardens, green roofs and walls, solar panels, geothermal heating and cooling, among others.
The coronavirus pandemic is not over yet and businesses are still relocating and repositioning themselves in Tier-2 cities. In addition, better job opportunities, ease of doing business, low pollution levels, lesser traffic, infrastructure development and improved connectivity will enhance the scope of premium residential market in these regions in the coming future.