Pandemic has accelerated sales of residential properties in smaller cities because some of these living spaces are available in developed and habituated townships. Demand for condos and integrated townships in Tier II cities has also seen a surge, with increased need of safer environment and amenities within gated communities.
Organisations are planning to continue work from home and policies like Atmanirbhar Bharat and Make in India will create opportunities in tier II & III cities.
Reverse migration is also likely to continue for some time so demand in these cities will increase. If you analyse residential sales from 2014 to 2019, tier I cities grew at 28%, but tier II grew faster at 51%.
Tier II and III cities have witnessed considerable rise in demand in the recent past, primarily due to accessible pricing, more space, better returns on investment and lower cost of acquisition, mostly for ready to move in units according to senior executive director, DLF Home Developers Ltd.
After Pandemic, there is a rise in trend among homebuyers to build a lifestyle away from the hustle of a metropolitan cities. People are buying well-developed plots and independent villas instead of houses in group housing societies or in high rise buildings.