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ndia's real estate market is undergoing a significant transformation, with tier II and III cities emerging as key players in shaping the sector's future. These cities are no longer overshadowed by metropolitan hubs, attracting substantial investments from developers and homebuyers alike.

    The growing appeal of these cities stems from a combination of affordability, infrastructure development, and improved connectivity, making them attractive destinations for both residential and commercial expansion. According to a CREDAI-Liases Foras joint study, 60 cities accounted for 44% of the 3,294 acres of land acquired by developers during the year gone by.

    This trend signals a change in investment focus, as developers recognize the potential of these regions in driving long-term growth. Housing sales rose 20% on-year to 681,138 units across 60 cities, with luxury and ultra-luxury housing leading the momentum. Properties priced between Rs 1-2 crore saw a 52% surge in sales, while the ultra-luxury segment experienced an even sharper rise of 73%.

    The Indian real estate sector is now valued at Rs 22.5 trillion, contributing 7.2% to the country's economy. While metro cities continue to dominate premium housing sales, the rising prominence of tier II and III cities is reshaping market dynamics. Cities such as Lucknow, Jaipur, and Bhubaneswar are witnessing steady price appreciation, reinforcing their market strength.

    The affordable housing segment remains a critical driver of growth, with cities like Ahmedabad, Pune, Indore, and Coimbatore leading the development of homes priced under Rs 30 lakh. As tier II and III cities solidify their role in India's real estate expansion, their affordability and high-value transactions are redefining the country's urban landscape, offering a balanced and sustainable growth trajectory for the sector.