India, March 7, 2025: The Confederation of Real Estate Developers’ Associations of India (CREDAI) inaugurated the 6th edition of the New India Summit today at Nashik, Maharashtra underscoring the pivotal role of Tier 2 and Tier 3 cities in India’s real estate evolution. Themed “Viksit Bharat - Unlocking Potential of Emerging Cities”, the summit brought together key policymakers, industry leaders, and stakeholders to chart a roadmap for inclusive urban development. Esteemed dignitaries such as Smt. Smriti Irani, former Cabinet Minister and Young Global Leader at the World Economic Forum, graced the occasion, reinforcing the growing focus on regional urban expansion.

The event also marked the launch of an in-depth report, “Overview of Residential Real Estate Market in 60 Major Cities of India,” a collaborative study with Liases Foras, India’s leading real estate research firm, providing comprehensive insights into the shifting dynamics of the housing sector.

The report highlights a significant surge in the role of Tier 2 and 3 cities in shaping India’s real estate future, revealing that 44% of the 3,294 acres of land acquired by developers in 2024 were concentrated in these emerging hubs. This marks a strong shift in investment focus, reflecting the potential of these cities in driving long-term sectoral growth. Housing sales in 2024 reached 6,81,138 units across 60 cities, recording an impressive 23% year-on-year increase. The primary builder’s market registered a sales value of ₹7.5 trillion, reflecting a staggering 43% YoY growth, propelled by sustained demand across segments. Luxury and ultra-luxury housing emerged as key drivers, contributing 71% of the total sales value, driven by larger ticket sizes and a balanced supply-demand dynamic in premium markets. Properties priced between ₹1–2 crore saw a 52% jump in sales, with 1,32,532 apartments sold, while the ultra-luxury segment (₹2 crore+) experienced an even steeper rise of 73%, highlighting developers’ confidence in catering to high-net-worth buyers. With the real estate sector now valued at ₹22.5 trillion and contributing 7.2% to India’s GDP, it is evident that Tier 2 and 3 cities are becoming growth engines, offering both affordability and high-value transactions that redefine India’s urban narrative.

While metro cities continue to dominate luxury and premium housing sales, the rise of Tier 2 and 3 cities has introduced a more balanced market dynamic, where mid-range and affordable properties play a crucial role in driving demand. Many of these cities are evolving into academic, logistics, and industrial hubs, further fuelling housing requirements. Increased urbanization, coupled with government initiatives such as the Prime Minister’s Gati Shakti mission, is enhancing connectivity between satellite towns and major metropolitan centers, unlocking new opportunities for growth. Cities like Lucknow, Jaipur, and Bhubaneswar are witnessing steady price appreciation, reinforcing their market strength. The affordable housing sector remains a key driver, with the Priority Sector Lending (PSL) category—covering homes priced under ₹30 lakh—and the ₹30-50 lakh segment attracting both first-time homebuyers and investors. Cities such as Ahmedabad, Pune, Indore, and Coimbatore are leading the way in affordable housing development, making homeownership more accessible to a wider demographic.

Mr. Manoj Gaur, Chairman, CREDAI, added, “Tier 2 and 3 cities are the cornerstone of India’s next phase of urbanization, driving inclusive growth and economic diversification. As highlighted in the report, these cities now account for nearly half of all land acquisitions by developers, signalling a seismic shift in investment patterns. For instance, Nashik’s transformation from a pilgrimage town to a thriving urban hub exemplifies the potential of these cities in reshaping India’s housing landscape. As connectivity improves and industries decentralize, we expect to see similar growth trajectories in cities like Indore, Coimbatore, and Bhubaneswar. We are committed in partnering with stakeholders to replicate Nashik’s success story nationwide, ensuring no city is left behind in India’s march toward a $5 trillion economy.”

Mr. Boman Irani, President, CREDAI, said, “India’s real estate sector is undergoing a paradigm shift, with Tier 2 and 3 cities playing a central role in urban expansion. As these cities become economic and industrial hubs, there is an increasing demand for affordable and mid-segment housing. Developers are recognizing this shift, leading to a surge in investments and new projects. The insights from this report will help the industry navigate the evolving market and ensure sustainable growth across regions.”

The 6th edition of the New India Summit reinforced CREDAI’s dedication to shaping a sustainable and inclusive real estate ecosystem, where emerging cities take center stage in India’s development narrative. With Tier 2 and 3 cities accounting for an increasing share of real estate investments and housing demand, the New India Summit serves as our annual effort to navigate the evolving landscape of real estate in Bharat, fostering meaningful dialogue and strategic insights that drive the sector forward.