If you are thinking of investing in real estate then it can be beneficial to take a decision soon. Tier-2,3 cities like Indore, Bhopal, Jaipur, Patna, Ranchi and Ludhiana can be better options. According to the report of proptech company Square Yards, the prices of plots in these cities may increase by 25% to 100% in the next 2 to 4 years. The Square Yards report said that due to government capital investment of ₹ 12.2 lakh crore in the country, new industrial corridors and employment expansion, land in small cities will become expensive at the fastest pace in the coming years. Cities like Indore, Jaipur, Bhubaneswar, Cuttack, Varanasi and Puri will lead this wave. Prices will rise fastest in the outskirts of the core city 15-40% – Within 1 km of metro corridor 30-70% – Near new airports/expressways 80-100% – High-growth peripheral plotted areas 20-60% – Industrial corridors/logistics hubs (Source: Square Yards Report 2026) 2020-25 – Tier-2 and Tier 2 Prices have doubled in 5 years in 3 cities. This is not a new beginning. Even between 2020 and 2025, the prices of both land and houses have increased rapidly in small and medium cities. In every city the growth of plot has been 10-25% more than flat. In Indore, during this period, a rise of up to 72% in flats and 85-100% in plots was seen. City flat expensive plot prices increased Indore 72% 85-100% Jaipur 65% 75-90% Bhopal 49% 60-75% Nagpur 47% 55-70% Chandigarh 44% 50-65% Raipur 40% 45-60% Ludhiana 38% 45-60% Patna 35% 40-55% Ranchi 33% 40-55% Jabalpur 28% 35-50% Udaipur 25% 35-50% Source: NHB Residex HPI, PropEquity Homes between Rs 50 lakh to Rs 1 crore are most in demand by investors – plots are the best option for long term tenure. Plots acquired near industrial clusters have the potential to give multi-bagger returns in the next 5-10 years. Employed class – Highest demand for houses priced between Rs 50 to Rs 1 crore. First time home buyers – Lower interest rates, easy facilities helpful. Revolution in real estate with 200 industrial clusters and ‘Urban Challenge Fund’, revival of more than 200 old industrial clusters in Tier-2, 3 cities, Semiconductor Mission-2.0 and expansion in electronics-chemical sector will generate employment on a large scale, which will increase the demand for house-plots in these cities. The government’s ‘Urban Challenge Fund’ of Rs 1 lakh crore will give impetus to this. Why the surge in tier-2 and 3 cities? There are limited possibilities for expansion in metro cities due to limited and expensive land. Larger plots can be purchased at lower prices in smaller cities. The biggest beneficiaries of infra investment are those areas where development is still low. 70% of blue-collar and a large number of white-collar jobs are shifting from metros to smaller cities.
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Real Estate – Property in small towns is the new gold: investment on infrastructure; Prices may increase by 100% in 2-4 years, Indore-Jaipur new hotspot
