India’s realty narrative is no longer just about major metros like Mumbai or Delhi. Tier 2 and 3 cities in 2025 are now coming to the forefront while also bringing new real estate investment opportunities to investors. Flourishing infrastructure and rising migration have Integrow Asset Management at the forefront of these budding markets.
Growth Exceeding Metros
Tier 2 cities are expanding at a whopping 6.5% year on year, compared to Tier 1 cities’ growth rate of 4.2%. This is due to economic diversification, be it IT centers in Jaipur or manufacturing sectors in Coimbatore. For an investor, this translates to more growth opportunities at a lower price, and the markets become irresistible.
Affordable Entry Points
Tier 2 city property rates are 40-60% lower than metros but have the same growth opportunities. Therefore, they are within reach, enabling investors to use less capital but diversify portfolios without straining their pockets, supporting better portfolio management. It is a golden chance to create wealth through investment in property in undercapitalized areas. This is a compelling real property investment window.
Infrastructure Push
The focus of the government on infrastructure is a game-changer. The infrastructure expenditure in Tier 2 and Tier 3 cities rose by ₹1.2 lakh crore in 2024-25, financing roads, railways, and smart city projects. This increase in connectivity drives up property rates, with Tier 2 office space absorption rising 45% in 2024 alone.
Migration Trends
The COVID-19 pandemic has made affordable living in Tier 2 cities a significant consideration for 25% of the population. At present, Lucknow, Surat, and Nagpur have strong populations in demand for new housing and commercial spaces. The movement of homebuyers to Tier 2 cities is creating an active market that can yield financial returns as part of long-term wealth management strategies for the astute investor.
Integrow’s Strategic Approach
We’re investing strategically in these markets at Integrow, using our knowledge to select high-potential projects under our disciplined investment management approach. Growth linked to infrastructure is our theme, and it provides long-term alpha, rooted in robust fund management processes in these alternative investments markets, putting our investors at the leading edge in 2025 via carefully selected alternative investment funds.
Tier 3 and Tier 2 cities are the way forward for Indian realty, fueled by growth, affordability, and migration. Integrow Asset Management is capitalizing on these trends to create value. Are you prepared to venture beyond city borders? Now is the time to dive into these new markets.
