Connectivity to infra push turning smaller cities into real estate hotspots

Fuelled by economic growth, acceptable travel times, and increased regional connectivity, India’s Tier -II cities are emerging as new hubs for the country’s real estate market.
 

In recent years, these cities have captivated the attention of real estate investors and developers, becoming vibrant centres of growth and opportunity.
 

Satellite cities like Meerut in Uttar Pradesh, and Sonipat, and Sohna in Haryana are becoming real estate hotspots due to infrastructural developments enhancing their proximity to major metropolitan areas such as New Delhi and Gurugram. Standalone markets such as Lucknow in Uttar Pradesh and Indore, Madhya Pradesh, have also gained prominence.
 

Ravi Saund, founding director at Emperium Private, a Gurugram-based developer, explained that cities like Meerut, Rewari, Sonipat, Panipat, and Yamunanagar offer promising landscapes for real estate ventures due to their strategic locations, proximity to major urban centres, and untapped market potential.
 

“From a pan-India perspective, about 20 cities are developing as service-led economies, mainly through global capability centres, while others are driven by manufacturing, logistics, and warehousing,” said Rajeev Vijay, executive director of government and infrastructure advisory at property consultancy Knight Frank India.
 

Cities like Lucknow and Indore have developed supportive industrial infrastructures, attracting job-seeking individuals.
 

“Lucknow already has its own domestic industry, but with the opening of the Ram temple in Ayodhya, the city has great potential to grow further as it serves as a gateway to Ayodhya,” Vijay added.
 

A significant factor in the development of Tier -II cities is their connection to economic generators. 
 

“The National Capital Region (NCR) is a prime example, where economic activities have shifted from Delhi to satellite towns like Gurugram and Noida over the last 20 to 25 years,” Vijay noted.
 

With projects such as the Delhi-Meerut Expressway, the regional rail transportation system, the Noida International Airport, and other peripheral highways, travel between Delhi and satellite centres like Meerut, Sohna, Sonipat, and Greater Noida will be more convenient.
 

Vijay explained that places accessible within an acceptable travel time also become attractive residential options. 

“While acceptable travel time (from home to office, particularly) varies, anything around one hour, plus or minus 15 minutes, is generally considered acceptable,” he said. 
 

“These projects will reduce travel time, allowing people living in Meerut to work in Gurugram, thus increasing productivity,” another Knight Frank India expert added.
 

The government is also enhancing infrastructure to appeal to younger buyers and those with young families. Such investments are enabling private developers to capture value and invest in land. 
 

In cities like Meerut, where multiple infrastructure projects are underway, developers have already acquired land 

for future projects two to three years in advance.
 

On the types of projects developers pursue, an expert from Knight Frank India mentioned that residential projects tend to be mid to high-end, depending on the desired market positioning. 
 

“As property prices soar in tier 1 cities, Tier -II  cities offer lucrative opportunities with lower entry barriers,” Saund said. “This affordability, combined with improving living standards and quality infrastructure, makes Tier -II  cities attractive for long-term investments and residential settlements.”