{"id":25407,"date":"2020-12-17T14:00:00","date_gmt":"2020-12-17T08:30:00","guid":{"rendered":"https:\/\/www.squareyards.com\/blog\/?p=25407"},"modified":"2025-04-03T16:55:40","modified_gmt":"2025-04-03T11:25:40","slug":"yearender-2020-tier-ii-cities-in-the-post-covid-era","status":"publish","type":"post","link":"https:\/\/www.squareyards.com\/blog\/yearender-2020-tier-ii-cities-in-the-post-covid-era","title":{"rendered":"Yearender 2020: Tier-II Cities in the Post COVID Era"},"content":{"rendered":"\r\n

The pandemic and the remote working culture are nudging millennials to shift to their hometowns from virus-ravaged metro cities.<\/em><\/p>\r\n\r\n\r\n\r\n

Imagine getting up early on a Monday morning – beating that insane traffic to reach the office on time and complaining everyday about living life stuck in a rut. Well! Monday mornings are different now. Your study room\/bedroom\/living room is where your workplace is. COVID-19 has transformed our day-to-day lives. A large chunk of the corporate workforce is returning to their hometowns. This reverse migration and increased remote working flexibility have surged the residential demand in the tier-II and tier-III cities in the country.\u00a0 Following the pattern, a lot of IT companies are looking forward to setting up branches of their offices in Tier-II and Tier-III Cities. Let\u2019s have a look at the emergence of these cities in the post COVID era.<\/p>\r\n\r\n\r\n\r\n

Infrastructure Development in Tier-II and Tier-III Cities<\/strong><\/h2>\r\n\r\n\r\n\r\n

Tier-II and Tier-III cities are witnessing rapid infrastructure development and emerging as employment hubs. Cities with a great mix of physical and social infrastructure and a competitive price of real estate have witnessed a spur in demand. Homebuyers are now preferring to invest in spacious homes at a growing location in comparison to smaller apartments in an expensive metro location. Properties in a strategic location with seamless connectivity are mostly being preferred.\u00a0 The development of metro services, low cost of living, and enhanced infrastructure have given a fillip to the demand for real estate in Tier-II and Tier-III cities.<\/p>\r\n\r\n\r\n\r\n

\r\n
\"Infrastructure\r\n
A Shopping Mall in Durgapur, West Bengal<\/em><\/figcaption>\r\n<\/figure>\r\n<\/div>\r\n\r\n\r\n\r\n

Corporate Offices and Co-working Spaces in Tier-II Cities<\/strong><\/h2>\r\n\r\n\r\n\r\n

The launch of smaller airports under the government\u2019s UDAAN Scheme has catapulted the opening of corporate offices in Tier-II Cities. The availability of infrastructure, talent, and cheap real estate has made multinational giants like HCL, Infosys, Wipro, Ericsson, TCS, Amazon, and OYO expand their reach to Tier-II cities. There is also expected to be an uptick in the demand for co-working spaces as it will help corporates to cut capital and adjust operations according to the market.<\/p>\r\n\r\n\r\n\r\n

In the post-COVID era, corporates have been re-thinking their strategies and office space is one of the prime concerns. Unlike pre-COVID days, when consolidating the whole team at one location was the focus, de-centralizing, and taking up multiple smaller offices in different locations might become the norm now. This would also augment demand for office space in Tier-II and Tier-III cities and hence residential demand.<\/p>\r\n\r\n\r\n\r\n

Homebuyers Preferring Low Rise Homes<\/strong><\/h2>\r\n\r\n\r\n\r\n

Affordability and better growth prospects are compelling homebuyers to invest in Tier-II cities. Some developers are targeting these homebuyers and offering low rise apartments, modern townships, and affordable plots in Tier-II cities. India Housing Report tells us interesting stats \u2013 Over 65 percent construction of apartments in Tier-II Cities are either single or double stories in comparison to 38 percent in metro cities. Low rise homes are quite popular in Tier-II cities after plotted developments. With employers offering work from home, buyers from these small cities are preferring to invest in a property in their hometowns. Looking at the behavioural pattern, buyers in these cities prefer low rise homes compared to the high rises in metro cities.<\/p>\r\n\r\n\r\n\r\n

Tier II Cities \u2013 Upcoming Hubs for Logistics and Warehousing<\/strong><\/h2>\r\n\r\n\r\n\r\n

Cities like Ludhiana, Coimbatore, Guwahati, Vapi, Surat, Bhubaneshwar, Lucknow, Patna, Ambala, Siliguri are witnessing logistics and warehousing demand. A multitude of government initiatives – the improvement in the Ease of Doing Business Index and the initiatives taken under the proposed National Logistics Policy and National E-Commerce Policy has given a major thrust to the sector and laid the roadmap for growth in Tier-II cities. Advantages of low rentals, manpower at a reduced cost, high vacancy levels are drifting the growth.<\/p>\r\n\r\n\r\n\r\n

Government Initiatives for Uplifting Real Estate<\/strong><\/h2>\r\n\r\n\r\n\r\n

The government has shown significant support for the development and infrastructure in small cities. The campaigns like Smart City Mission, AMRUT, and Pradhan Mantri Awas Yojana<\/strong> reflect their preparedness for boosting real estate in Tier-II cities. RBI\u2019s announcement of a cut in repo rate and relief package for Housing Finance Companies are some of the initiatives taken to boost the real estate sector in Tier-II and Tier-III cities.<\/p>\r\n\r\n\r\n\r\n

The Growing Tilt towards Tier-II Cities<\/strong><\/h2>\r\n\r\n\r\n\r\n

With the exhausted potential of prime areas in Tier-I Cities, buyers are now looking forward to investing in Tier-II Cities.<\/p>\r\n\r\n\r\n\r\n

The Government\u2019s Local for Vocal campaign offers a much-needed boost to the manufacturing industries in smaller cities.\u00a0 The rising scale of business would have a domino effect on real estate development in Tier-II cities. Seasoned investors and developers are building well maintained and integrated townships, in Tier-II cities. There are several modern residential and commercial projects cropping up with a timeline of 2-3 years, which will redefine the future here. Residents can expect to welcome better job opportunities, which will also give the much-needed impetus to the economy here.<\/p>\r\n\r\n\r\n\r\n

Also read: Luxury Housing in the Post-Pandemic Era<\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"

The pandemic and the remote working culture are nudging millennials to shift to their hometowns from virus-ravaged metro cities. Imagine getting up early on a Monday morning – beating that insane traffic to reach the office on time and complaining everyday about living life stuck in a rut. Well! Monday mornings are different now. Your […]<\/p>\n","protected":false},"author":27,"featured_media":25493,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"acf":[],"_links":{"self":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts\/25407"}],"collection":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/comments?post=25407"}],"version-history":[{"count":12,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts\/25407\/revisions"}],"predecessor-version":[{"id":1081619,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/posts\/25407\/revisions\/1081619"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/media\/25493"}],"wp:attachment":[{"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/media?parent=25407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.squareyards.com\/blog\/wp-json\/wp\/v2\/categories?post=25407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}