Emergence of Tier 2 and 3 Indian Cities as Key Growth Hubs in Real Estate by 2025
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New Delhi, Dec 24 (NationPress) With its crucial contribution to the economy, the housing sector is anticipated to account for 13 percent of the national GDP by 2025, as tier 2 and 3 cities rise as essential growth centers for this sector, according to a report published on Tuesday.
“Tier 2 and 3 cities are becoming critical growth centers, with smaller urban areas like Jaipur, Indore, and Kochi leading more than 40 percent of new housing projects by 2025,” stated Ritesh Mehta, senior director and head (north and west), residential services and developer initiative, JLL India.
He also highlighted that the urban homeownership rate is projected to rise to 72 percent by 2025, up from 65 percent in 2020, aided by affordable financing options and a younger demographic entering the property market.
Millennials and Gen Z buyers are predicted to make up 60 percent of new home purchasers by 2030.
“Sustainability, once viewed as a luxury, has now become a necessity in the housing sector. Green-certified buildings are forecasted to represent 30 percent of new residential projects by 2025, a significant increase from 15 percent in 2020,” Mehta remarked.
Green building certifications, such as LEED (Leadership in Energy and Environmental Design), are gaining traction as the real estate sector emphasizes sustainability.
The demand for smart homes and tech-integrated living spaces is also surging, with advanced home automation systems, including IoT devices that improve security, energy management, and overall convenience.
“Affordable housing continues to be a major focus in India. Government initiatives are aimed at promoting accessible housing options, making homeownership more attainable for the urban middle class and first-time buyers,” the JLL report indicated.
Furthermore, the definition of luxury in real estate has transformed, especially in light of the Covid-19 pandemic. There is now a heightened focus on spacious layouts, private outdoor areas, and wellness amenities that enhance health and well-being, as noted in the report.
