How infra is putting T-2 cities on investment hotspot zone

Mumbai, June 08

Infrastructure development is rapidly transforming India’s real estate landscape, with Tier-II cities such as Indore, Sonipat and Pune emerging as the nation’s new investment hotspot. This shift is boosted by convergence of factors – most notably, large-scale infrastructure projects that are enhancing connectivity, livability and economic prospect in this region.

The recent metro extension to Sonipat has made the city more desirable as this development leads the city in the vicinity of Delhi-NCR by lessening the daily commute time.

Talking to Bizz Buzz, Rahul Singla, Director of Mapsko Group says, “Sonipat is on the brink of a real estate revolution. The city's evolving infrastructure, coupled with its strategic location near Delhi, makes it a hotbed for investors looking for substantial returns on investment.”

Often hailed as the cleanest city in India, Indore is expanding quickly thanks to a booming startup scene and significant infrastructural improvements. The demand for residential and commercial real estate is being further increased by investments in metro projects, smart city programs, and better road networks, which are attracting businesses and young professionals.

Yashank Wason, Managing Director, Royal Green Realty says, “The rise of Tier-II cities such as Indore, Sonipat, and Rohtak as real estate investment hubs can largely be attributed to their advancing infrastructure. Enhanced connectivity, smart city initiatives, and supportive government policies are attracting both homebuyers and investors seeking affordability, quality living, and long-term value appreciation. As metropolitan regions face saturation, these cities offer a compelling blend of opportunity and lifestyle, positioning them at the forefront of India’s next real estate growth wave.”

Harish Fabiani, Chairman of IndiaLand Properties

The high cost of living is driving businesses and investors to explore opportunities beyond Tier-I cities.”

There is no denying the change in market attitude. According to recent data, Tier-2 and Tier-3 cities accounted for roughly 44% of the land that developers purchased in 2024, demonstrating their increasing popularity. These cities are now seen as key locations with high returns, improved quality of life, and potential for long-term value rather than as backup choices.

Tier-2 cities are well-positioned to continue leading India's real estate growth narrative because to consistent infrastructure investment, encouraging policies, and rising aspiration. s urbanization spreads beyond traditional metros, these cities are set to define the next chapter of the country’s property market, offering a compelling blend of affordability, opportunity, and quality living

EoM.