Tier–II cities are not among your usual suspects when it comes to places for real estate investment. But real estate investors are slowly gaining confidence in Tier–II cities. In fact, these cities are becoming a favored choice for investors on the look-out for affordable options that would get them higher rental yield compared to metros. Keeping that in mind, here are the key reasons why you should be investing in Tier-II cities real estate.
Infrastructure Development
Rapid development of infrastructure has become one the primary drivers of growth for many cities. The coming of Metro rail in Tier–II cities including Lucknow, Ahmedabad, Kochi and Patna is one such development. And it is not just inter-city but an improved connectivity to the rest of the country, especially the nearest to the metro city, that’s giving traction to investment in Tier-II cities.
Affordable real estate
Residential projects in Patna, Kochi, Lucknow, Jaipur and other Tier–II cities are more affordable compared to metros. These cities have multiple options for all level of investors, from high-end to affordable apartments. In fact, Tier–II cities are being hailed as the best places to purchase a property to get the best value-for-money.
Low cost of living
Tier–II cities are not only a great option for earning rental income but also to buy retirement home as well. This is because Tier–II cities are comparatively less expensive than metro cities. Apart from being cheaper, Tier–II cities also offer healthcare facilities that are on par with metros, have a cleaner environment, and many other advantages.
Job Opportunities
Not only infrastructural development but commercial development in Tier–II cities is on the rise, and makes their real estate popular. Cities like Lucknow, Kochi and Patna are seeing a spurt in the number of businesses being setup there, thus giving rise to more job opportunities. The reason why businesses are setting their shop here is the cheaper cost of operations. With more employment opportunities on offer, this is the right time to invest in one of the residential projects in Patna, Kochi, Jaipur and other Tier–II cities as the rental return would be much better compared to metro cities.
Tier–II cities are now able to offer a lifestyle that’s comparable to metros; cities such as Jaipur, Lucknow and Chandigarh already have a mall culture with a number of luxury brands setting up their shops. This will eventually be followed by metro connectivity, an aspect that is highly preferred for investment due to employment demand and urbanized lifestyle. At this moment, you are more likely to find a better investment deals in Tier –II cities than a metro, and that too with comparatively greater growth potentials.
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