Luxury with affordability triggers demand for second home in tier 2 cities
Sheesram Yadav,
The Wealth Report 2024 predicts a 6.1% annual increase in the ultra-high-net-worth (UHNI) population in India from 13,263 in 2023 to 19,908 by 2028. This growth is fuelled by substantial investments from HNIs and UHNIs in the luxury housing market. On the other hand, real estate consultancy JLL India reported a 51% increase in sales of luxury homes valued at Rs 50 crore and above in 2023, reaching Rs 4,319 crore in value. Moreover, the demand for luxury homes is increasing not only in cities like Delhi, Mumbai, Bengaluru, and Hyderabad but also in tier 2 cities such as Goa, Jaipur, and Vadodara.
Indian real estate is experiencing significant growth, with tier 2 cities emerging as growth engines due to their population growth, rapid urbanization, and improved infrastructure. These cities are attracting residents and developers due to their lower cost of living, better work-life balance, and affordability. As India is expected to urbanize at a 50% rate by 2050, the focus will shift to tier 2 cities, making them the next promising destination for real estate. Aspirational living is driving a move towards premium and luxury properties, leading to a growing demand for high-end lifestyles and inclusive communities.
Tier 2 cities are gaining popularity as realty investment destinations due to the rise of integrated townships, low-rise developments, and luxury properties. These developments offer a holistic living experience and modern amenities, attracting discerning homebuyers. Low-rise independent floors provide a sense of ownership and community, while planned developments offer individual customization and flexibility.
Spacious and luxury properties reflect evolving lifestyles, with high-end finishes and amenities in high demand. Future-ready amenities like smart homes, co-working spaces, fitness centres, and recreational facilities attract residents seeking a modern lifestyle. Developers are also incorporating nature-inspired holistic living into their projects. Higher lifestyle investment is driven by aspirational values for home ownership, larger living spaces, and second residences.
The demand for luxury independent floors in tier II cities is on the rise due to affordability, space, privacy, improved infrastructure, and enhanced quality of life, especially in the Rome of the East, Goa. The coastal city is known for its lush green environment and better air quality index, and it is becoming India's primary destination for luxury properties.
Second homes and smart vacation houses are in high demand in Goa, offering amenities like home offices, study rooms, gyms, entertainment, and green spaces. Additionally, the launch of the MOPA airport is expected to improve connectivity, boost tourism, and attract real estate investments. Nature also promotes mental health and productivity, with research showing that spending time in nature can protect against various diseases.
Thus, progressive developers in the region are developing a township in Mopa, inspired by Goa's natural beauty, which offers a serene environment with abundant amenities and inter-state connectivity. The township is close to mainline Goa and offers the benefits of living in a green environment. Their mission is to create intentional communities, planting trees in private and communal areas before handover, ensuring an eco-friendly environment for residents and their families. This sustainable approach not only benefits the planet but also leads to healthier and happier lives, emphasizing sustainability and trends to integrate eco-friendly practices and resource-efficient technologies into the development of new projects is redefining real estate in tier 2 cities of India.
