Tier 2 Cities Emerge as New Luxury Property Hubs by 2026
Business
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News18•26-01-2026, 11:59
Tier 2 Cities Emerge as New Luxury Property Hubs by 2026
- •Tier 2 and 3 cities are redefining India's luxury property market, with sales in H1 2025 contributing 1,907 acres in land sales, significantly more than Tier 1 cities.
- •Properties above Rs 1 crore accounted for 62% of sales in H1 2025 in Tier 2 cities, up from 51% previously, with prices surging by an average of 17.6%.
- •Cities like Lucknow saw a 48% jump in sales value and 22.6% capital appreciation in Q1 2025, defying national trends.
- •Corporate decentralization, including Global Capability Centers (GCCs) doubling their leasing share in Tier 2 cities to 15% in FY25, is fueling economic growth and high-income talent pools.
- •Improved infrastructure (expressways, metros, airports) and increased NRI demand are critical factors driving the sustained growth and appeal of these emerging luxury markets.
Why It Matters: Tier 2 cities are rapidly becoming luxury property hotspots, driven by economic growth, infrastructure, and changing buyer preferences.
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